Sustainability Report 2016 Geoalcali and Highfield Resources www.geoalcali.com www.highfieldresources.com.au Index 1. A MESSAGE FROM OUR CEO: (G4-1) ................................... 2 5.5. Hygiene and Safety in the Region ...............................34 7. ENVIRONMENT ........................................................................65 5.5.1. Risk of Illness. ........................................................35 7.1. Preventative Focus ..........................................................66 2. ABOUT US .................................................................................... 5 5.5.2. Risks From the Installations ..............................35 2.1. Potash Muga Mine ............................................................. 6 7.2. Water Management Planning ......................................67 5.5.3. Preparation and Response in Emergency Location ................................................................................. 6 Situations .................................................................35 7.3. Waste Management Planning ......................................68 Investment............................................................................ 6 5.5.4. Financial Viability ..................................................35 7.4. Biodiversity ........................................................................69 Method................................................................................... 6 5.5.5. Physical, Chemical and Ecological Habitat 7.5. Air Quality ...........................................................................69 Environment ......................................................................... 6 Integrity ...................................................................35 Main Highlights ................................................................... 8 7.6. Gas Emissions ...................................................................69 6. SOCIAL .........................................................................................37 Muga Mine Approvals Process (As of 7Th Abril 2016) ... 8 7.7. Noise and Vibrations .......................................................69 Muga Mine Optimisation Study ...................................... 8 6.1. Our Employees: Setting an Example From Within .38 7.8. Visual Impact .....................................................................69 Muga Mine Timeline .......................................................... 9 6.1.1. Attractive to Professionals ................................39 6.1.2. Investing in Training .............................................39 7.9. Actions Taken .....................................................................70 2.2. Other Projects ..................................................................... 9 6.1.3. Performance Indicators and Evaluations .......39 Relevant Special Agreements .......................................70 2.2.1. Sierra del Perdón ..................................................... 9 6.1.4. Corporate Volunteering .......................................39 Commitments to our Stakeholders .............................70 2.2.2. Pintanos ..................................................................... 9 6.1.5. Company Statistics ...............................................40 New Studies .......................................................................70 2.2.3. Vipasca .....................................................................11 2.2.4. Izaga ..........................................................................11 6.2. Our People: Local Communities ...................................41 Continuation of the Integrated Management System .................................................................................72 2.2.5. Proyecto SOP .........................................................11 6.2.1. Active and Transparent Communication ........41 • Talks ........................................................................42 Rule Adaptations ..............................................................72 3. SUSTAINABILITY, KEY TO OUR DEVELOPMENT .............13 • Official Communication with the Waste Management Plan Creation for the 3.1. Activity Framework ..........................................................14 Administrations ...................................................43 Exploitation and Research Phases ..............................72 • Face to Face Meetings .......................................43 3.2. Corporate Governance ....................................................16 Good Environmental Practice Leaflets for • Public Exposure of The Process ......................43 Construction Employees.................................................72 3.3. Board of Directors ............................................................16 • Updates to the Website ....................................43 Creation of the Environmental Requirements for 3.4. About the Report ..............................................................20 • Sustainability Reports .......................................43 the Contractors .................................................................72 3.5. Stakeholders ......................................................................21 • Stock Market Communications .......................43 Creation of Instructions for the Collection of 3.6. Material Assessment ......................................................22 • Information Brochure ........................................43 Topsoil ..................................................................................72 • Public Participation Plan ...................................46 Increases in Staff in the Environment 4. COMPANY PERFORMANCE ..................................................25 Town Council Web Collaboration .......................49 Department ........................................................................72 4.1. Main Highlights .................................................................26 6.3. The Geoalcali Foundation, Communicates Increase in Technical Training in the Environment 4.2. Continued Objectives and New Challenges ..............28 its Values to The Community ........................................50 Department ........................................................................72 6.4. Academic and Proffessional World .............................63 7.10. Environmental Indicators ............................................73 5. HEALTH AND SAFETY .............................................................31 6.4.1. Universities .............................................................63 5.1. Training, Courses and Talks, Creating a Culture of 8. BUSINESS IN FIGURES ...........................................................75 6.4.2. Sponsorship ............................................................63 Health and Safety .............................................................33 6.4.3. Investments in Research and Development 8.1. Products ..............................................................................76 5.2. Relevant Changes .............................................................34 Projects ....................................................................63 8.2. Economic Performance ..................................................77 5.3. Knowledge and More ......................................................34 6.4.4. Fertiliser Research to Increase Yield ...............63 5.4. Accident Statistics: Objective of Zero, Completed ..34 6.4.5. Member Associations ..........................................63 9. GRI INDEX ...................................................................................79 1 A Message from our CEO from A Message 1. A message from our CEO “We are developing significant potash I am pleased to present the Company’s second Sustainability people transit to metropoles because of the lack of job Report analysing our performance from July 2015 to June opportunities. In addition there is an aging population that 2016. This report is a presentation of the sustainable has increasingly high levels of unemployment. One of our projects that are a activities of Highfield Resources Limited and its subsidiary, important stakeholders, Mr Felix Bariain the President of the Geoalcali SL (“the Group”). farmers union of Navarra (UAGN), recently asked at a public balanced combination of forum, “What policy is more social than fixing the population We are committed to demonstrate to all our stakeholders in towns?” alluding to the importance of sustainability how we are integrating transparent reporting on sustainability (environmental, social and economic) investment in the matters into all of our projects and operations. Currently our best practice technical, primary sector and always complying with environmental focus remains on the Muga mine, our flagship potash project. legal requirements. The Group’s overriding focus for all of our activities remain The Company is working to develop a project that not only social, environmental and the four pillars of safety; best environmental performance; complies with current legislation in Spain and Europe, but social development of our neighbouring communities; and serves as a benchmark for a sustainable development. spreading the economic benefits to the greater region. In economic principles”. an increasingly integrated global world, the international This is why, the Company, since its inception, has focused community faces major challenges. on integrating