Ambatovy SUSTAINABILITY REPORT Table of Contents List of Acronyms ............................................................................................................................................................................... 4 Message from our President ............................................................................................................................................................ 6 About This Report ............................................................................................................................................................................ 8 About Us ........................................................................................................................................................................................... 10 Our Operations and Facilities ........................................................................................................................................................... 11 Our Products .................................................................................................................................................................................... 12 Highlights .......................................................................................................................................................................................... 13 Corporate Governance ..................................................................................................................................................................... 14 Our Sustainability Commitment ....................................................................................................................................................... 15 The Sustainable Development Goals ................................................................................................................................................ 15 Stakeholder Engagement ................................................................................................................................................................. 16 Key Impacts, Risks and Opportunities .............................................................................................................................................. 20 Governance and Human Rights ........................................................................................................................................................ 23 Economic Performance .................................................................................................................................................................... 28 Communities and Social Relations ................................................................................................................................................... 31 Environment ..................................................................................................................................................................................... 41 Labor ................................................................................................................................................................................................ 53 Product Responsibility ...................................................................................................................................................................... 60 Letter from our Vice President, Sustainability .................................................................................................................................. 62 Appendix 1: The Sustainable Development Goals ............................................................................................................................ 63 Appendix 2: Partnerships and Associations ...................................................................................................................................... 66 Appendix 3: Priority Species ............................................................................................................................................................. 67 Appendix 4: GRI Content Index ........................................................................................................................................................ 69 Appendix 5: Additional References .................................................................................................................................................. 73 List of Acronyms AEMS Ambatovy Environmental Management System FIMIAM Fikambanambe Mivondrona Ampitambe AFNOR Association Française de Normalisation (French Mahatsara (Federation of Formal Entities Standardization Association) of Ampitambe) AIFR All Injury Frequency Rate GEM Groupement des Entreprises de Madagascar (Madagascar Business Association) AIMS Ambatovy Incident Management System ALBI Ambatovy Local Business Initiative GERP Groupe d’Etude et de Recherche sur les Primates (Primate Study and Research Group) AMSA Ambatovy Minerals S.A. GHG Greenhouse Gas BBOP Business and Biodiversity Offsets Program BNGRC Bureau National de Gestion des Risques GRI Global Reporting Initiative et Catastrophes (National Office of Disaster Risk Ha Hectare(s) Management) HIA Health Impact Assessment CAZ Couloir Ankeniheny Zahamena (Ankeniheny- Zahamena Corridor) HIV / Human Immunodeficiency Virus / AIDS Acquired Immune Deficiency Syndrome CCS Centre Culturel et Social (Cultural and Social Center) HS CFAM Analamay-Mantadia Forest Corridor Health and Safety CI Cobalt Institute (formerly Cobalt Development ICMM International Council on Mining and Metals Institute) ICRC International Committee of the Red Cross CIREEF Circonsription de l’Environnement, de l’Ecologie IFAD International Fund for Agricultural et des Forêts (District for Environment, Ecology Development and Forests) IFC CLC Local Coordination Committee International Finance Corporation CLP Classification, Labeling and Packaging IGA Income-Generating Activity COBA Community-based Association INGO International Non-Governmental Organization CR Critically Endangered Species ISO International Organization for Standardization CRBPs Children’s Rights and Business Principles IUCN International Union for Conservation of Nature CRC Convention on the Rights of the Child JICA Japanese International Cooperation Agency CRGRI Comité Régional de Gestion des Risques km Kilometer Industriels (Regional Committee for Industrial Risk Management) KPI Key Performance Indicator CSB Centre de Santé de Base (Basic Health Center) kt Kilotonne CSR Communities and Social Relations LGIM Loi sur les Grands Investissements Miniers (Law DMSA Dynatec Madagascar S.A. on Large Scale Mining Investments) LME DRAE Direction Régionale de l’Agriculture et de l’Elevage London Metal Exchange (Regional Directorate of Agriculture and Livestock) LPG Liquid Petroleum Gas EFA Ezaka Fampandrosoana any Ambanivohitra LTI Lost Time Injury (Rural Development Campaign) MAC Mining Association of Canada EITI Extractive Industries Transparency Initiative MBG Missouri Botanical Garden EN Endangered Species MECIE Mise en Compatibilité des Investissements avec EPFI Equator Principles Financial Institution l’Environnement (Investment and Environment ESIA Environmental and Social Impact Assessment Compatibility Regulation) ESU Evolutionary Significant Unit NI Nickel Institute EY Ernst & Young NGO Non-Governmental Organization 4 List of Acronyms ODDIT Organe de Développement du Diocèse de Toamasina SFCG Search for Common Ground (Diocesan Development Office of Toamasina) SIF Social Investment Fund OHCHR Office of the UN High Commissioner for Human SIM Syndicat des Industries à Madagascar Rights (Madagascar Industries Union) OIF International Organization of La Francophonie SOC Species of Concern Office National pour l’Environnement ONE (National SPI Significant Potential Incident Office for the Environment) STI Sexually Transmitted Infection PAP People Affected by the Project TKI Tokotany Iraisana (Common Ground) PPI Plan de Préparation d’Intervention (Intervention Preparedness Plan) TMF Tailings Management Facility QAQC Quality Assurance Quality Control TSM Towards Sustainable Mining QMS Quality Management System UDHR Universal Declaration of Human Rights REACH Registration, Evaluation, Authorization and UN United Nations Restriction of Chemical Substances UNICEF United Nations Children’s Fund SCC Scientific Consultative Committee VSLA Village Savings and Loan Association SDGs Sustainable Development Goals VPSHR Voluntary Principles on Security and Human SDRA Structure de Dialogue Region-Ambatovy Rights (Dialogue Structure for the Region and Ambatovy) WASH Water, Sanitation and Hygiene SDS Safety Data Sheet WHO World Health Organization List of Acronyms 5 Message from our President Dear Reader, I am very pleased to share with you Ambatovy’s eighth annual Sustainability Report covering our objectives, approaches and performance over the course of the year. It reflects the importance that Sustainability plays in our operations. For our operations to be conducted in a responsible manner and in order to have an enduring, positive legacy for Madagascar, we must continue to put Sustainability at the core of our planning and decision making. This principle guides our work and is embedded in our approaches to stakeholder engagement, social and economic investments, governance, the workplace, the environment, and safety and security. In 2017, Ambatovy