2018 SUSTAINABILITY REPORT Supplying a Sustainable Future Sherritt International Corporation is committed to providing a safe and rewarding workplace, operating ethically, demonstrating environmental responsibility, engaging stakeholders and benefitting communities. We will meet or exceed the standards where we operate and continuously improve performance. SUPPLYING A SUSTAINABLE FUTURE Sherritt’s products have a role to play in global plans for a sustainable future for all So where do Sherritt’s products end up? What is unique about them? What are the opportunities? Scroll down the page to learn more Sherritt’s products have important roles to play in a sustainable future Each contributes to the development of goods and services which can provide a safe healthy secure existence for all Our products are used widely in thousands of applications in the global marketplace More and more in their efforts to ensure a responsible supply chain customers want to know how we conduct our business Sherritt expects this interest to grow and is prepared for the evolution occurring in supply chain relationships At Sherritt we are committed to ensuring that we operate sustainably and that we are not creating undue environmental social and economic harm in the areas in which we operate How is Sherritt responding to the challenge sustainability presents when mining and refining nonrenewable resources? ENSURING THE SAFETY AND HEALTH OF OUR EMPLOYEES AND COMMUNITIES FOSTERING A DIVERSE AND INCLUSIVE WORKFORCE INTERACTING WITH A WIDE RANGE OF STAKEHOLDERS RESPECTING HUMAN RIGHTS ENSURING THE SURVIVAL OF A VIABLE BUSINESS PROTECTING THE ENVIRONMENT PROVIDING BENEFITS TO LOCAL COMMUNITIES ESTABLISHING RESPECTFUL AND PRODUCTIVE RELATIONSHIPS WITH ALL LEVELS OF GOVERNMENT SHERRITT 2018 SUSTAINABILITY REPORT 1 million tonnes million tonnes of CO emissions could be eliminated due to increased fuel efficiency in aviation as the result of improving aerodynamics and engine design using nickelcontaining parts years The average life of nickelcontaining products is in the range of years and for some applications such as roofs and cladding this can go up to years Nickel containing materials and products are necessary for sustainability % More than % the world’s supply of nickel is unsuitable for battery production however % of Sherritt’s Class I nickel briquettes and cobalt is suitable for batteries including hybrid and electric vehicles SHERRITT 2018 SUSTAINABILITY REPORT 2 % OF EMPLOYEES AT SHERRITT’S DIVISIONS ARE WOMEN AND WE ARE COMMITTED TO DOING BETTER Diversity is an emerging issue across society and particularly relevant to the natural resources sector because of the historically low proportion of women and people of differing backgrounds and abilities in our industry We know that we will become a stronger more innovative and resilient company as we continue to attract a spectrum of people of different cultural backgrounds genders ages and life experience to our company We have begun a multiyear effort to increase our understanding of related challenges and opportunities improve diversity literacy internally align business processes and structures to be more inclusive develop and implement a metrics framework and ultimately improve performance in this area In Sherritt will launch an internal global framework for diversity and inclusion which includes plans for the next five years at each of our sites SHERRITT 2018 SUSTAINABILITY REPORT 3 % OF ALL NICKEL IS SUITABLE FOR ELECTRIC VEHICLE EV BATTERIES It is impossible to meet the demands of a developing world without nickel and cobalt Batteries which rely on nickel and cobalt are becoming ever increasingly important for storing renewable energy and supporting the global goals of sustainability and action on climate change While the first nickel battery has been around for more than a century the last three decades have seen extraordinary changes in how batteries are made and ELECTRIC VEHICLE BATTERIES used New applications from storing solar energy to powering electric vehicles WILL INCREASINGLY RELY ON have emerged NICKEL These new applications in turn are pushing the limits of battery capacity and power resulting in greater demands for higher purity metals Enter Class I nickel Unlike nickel pig iron which is high in iron content Class I nickel is purer and amenable to battery production particularly for the fastgrowing electric vehicle market Sherritt is a producer of Class I nickel It is expected that carmakers will invest billion in electric vehicles by Each of these cars will be powered by batteries made from cobalt and nickel Sherritt also produces cobalt in briquette form the most suitable for battery CHANGES DRIVEN BY production Cobalt supply constraints Commodity pricing environment Surging endproduct demand SHERRITT 2018 SUSTAINABILITY REPORT 4 % OF NICKEL PRODUCED GLOBALLY IS USED TO MANUFACTURE STAINLESS STEELS Building infrastructure to last is becoming increasingly topical as cities and countries are burdened with the high costs of maintaining things like hospitals and highways some of which are not particularly old but were built with materials not suited for the intensity of use the geography or other factors For bridges in particular the use of carbon steel rebar has led to the deterioration PICTURED HERE IS THE HELIX of concrete over time The worst corrosion occurs in regions where road salt is BRIDGE IN SINGAPORE MADE FROM NICKELCONTAINING heavily used or in areas near salt water but nickelcontaining stainless steel rebar STAINLESS STEEL THE prevents damage to structures caused by rebar corrosion Stainless steel rebar is CORROSION RESISTANT used in ever increasing amounts today both in North America and around the PROPERTIES OF STAINLESS STEEL ARE EXCELLENT FOR world While stainless steel is more expensive its selective use can be justified THE HUMID CLIMATE financially when all the costs of maintaining the structure over its life are considered In Edmonton the provincial capital of Alberta Canada about km southwest of Sherritt’s Fort Saskatchewan site with a metropolitan population of over one million a new ring road around the city was completed in a portion of which Northeast Anthony Henday Drive is km of six or eightlane highway Winter is especially hard on the roads in Edmonton The average daily temperature in January is C with an annual snowfall of about cm Large amounts of salt both sodium and the more corrosive calcium chloride are applied to keep the roads as free from ice as possible In Type S stainless steel was specified for a trial for one highway interchange on the ring road The success of that venture led to the specification of Type rebar for a major portion of this new section reported to be in the region of tonnes Perhaps in years or so a lifecycle assessment will be done of one of these Edmonton bridges leaving no doubt that the engineers in charge made the right decision SHERRITT 2018 SUSTAINABILITY REPORT 5 METRIC TONNES OF FERTILIZER IS PRODUCED BY SHERRITT EVERY YEAR DID YOU KNOW? According to Fertilizer Canada by the world will need to increase food production by % Without fertilizer global food production would be half of current levels requiring farmers to grow more food on land that is increasingly under pressure from development Sherritt’s nickel refineries in Fort Saskatchewan Alberta the Fort Site and Ambatovy in Madagascar produce DID YOU KNOW? SHERRITT’S FORT SASKATCHEWAN ammonium sulphate fertilizer as a byproduct which is then sold to Canadian REFINERY WAS THE FIRST East African including Malagasy and Asian farmers A saleable byproduct means FERTILIZER PRODUCER IN less waste from the refining process and more food on the table for people around ALBERTA the world TO LEARN MORE ABOUT HOW FERTILIZER FACTORS IN TO THE This number fluctuates from yeartoyear depending on nickel production NICKEL AND COBALT PRODUCTION PROCESS SEE THIS INFOGRAPHIC SHERRITT 2018 SUSTAINABILITY REPORT 6 LARGEST INDEPENDENT POWER PRODUCER IN CUBA Sherritt’s Cuban power business operates through a onethird interest in Energas SA The remaining twothirds interest is held equally by two Cuban agencies Union CubaPetroleo CUPET and Unión Eléctrica UNE Did you know that raw natural gas that would otherwise be flared is supplied to Energas by CUPET free of charge? The processing of raw natural gas produces clean natural gas used to generate electricity as well as byproducts such as condensate and liquefied petroleum gas The Energas facilities which comprise the two combined cycle OUR EXCELLENT CRISIS plants at Varadero and Boca de Jaruco produce electricity using steam generated PREPAREDNESS RESULTED IN from the waste heat captured from the gas turbines MINIMAL IMPACTS FROM HURRICANE IRMA WHICH MADE LANDFALL IN AND In the unit at our Varadero facility was granted Clean Development ALLOWED SHERRITT TO Mechanism status under the provisions of the Kyoto Protocol by the United QUICKLY MOBILIZE TO PROVIDE Nations Framework Convention on Climate Change We have since built another POSTSTORM SUPPORT IN THE COUNTRY AND BRING THE combined cycle unit at a different facility in Cuba that is eligible for this POWER SUPPLY BACK ONLINE designation Not only does this investment provide the Cuban grid with much needed energy for the Cuban people but we have also received numerous carbon credits Energas’ electrical generating capacity is MW SHERRITT 2018 SUSTAINABILITY REPORT 7 COMMERCIAL OPERATIONS WORLDWIDE HAVE USED SHERRITT TECHNOLOGY DID YOU KNOW? Sherritt is one of the best known companies