Allkem Ltd T.ORL

Kinross Gold's CO2 reduction plans

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• The Company is budgeting US$50 million in 2022 for ESG-related capital expenditures, which includes developing a 34 MW solar power plant at Tasiast in Mauritania, and studying building a power line to connect the Udinsk project into the regional grid in Russia, as opposed to self-generating electricity with diesel.
• The Company signed a power purchase agreement for 100% renewable power at the La Coipa project in Chile, and incorporated electric shovels, solar power for the camp, and an ore conveyor system to reduce the use of haul trucks in the Lobo-Marte project plan.

Partnering with equipment manufacturers and energy suppliers to reduce GHG emissions and energy use

• As 90% of the Company’s current scope 1 and scope 2 emissions are from power generation and mine fleets, a significant part of its GHG reduction strategy will include strategic partnerships with equipment manufacturers and energy suppliers. Current initiatives include:
  • Entering into an agreement with Komatsu to take an active role in the development of the Zero Emission Haulage Solution, which will target the development of zero-emission haul trucks.
  • Supporting research for a new crushing and grinding system that could radically reduce energy use in comminution circuits.
• The Company will continue to work with local energy suppliers on reducing emissions in power generation. In 2020, approximately 36% of electricity used by Kinross operations was sourced from renewable sources from local or country grids.       

Embedding climate change considerations into strategic business decisions

• Kinross will maintain its focus on climate change as a key consideration in its overall business strategy, project development plans, mine life planning and financial analysis. For example, the Company has:
  • Acquired two hydroelectric power plants in Brazil with 155 MW rated capacity in 2018 to increase renewable energy use at Paracatu.
  • Incorporated ESG considerations into its M&A strategy, including pursuing acquisitions in low-carbon jurisdictions, such as the recent agreement to acquire Great Bear Resources and its Dixie project in Red Lake, Ontario.
  • Included the use of a notional market price for carbon in the Company’s financial analysis and decision-making processes.