We believe in a green energy future Sustainability Report 2022
Contents About This Report This is IGO’s eighth Sustainability Report and presents our sustainability performance for the period 1 July 2021 to 30 June 2022 (FY22). The report is produced to provide our stakeholders with a transparent account of how we address the most material sustainability issues our Company faced during FY22. It forms part of IGO’s annual corporate reporting suite and is best read in conjunction with the IGO 2022 Annual Report, in addition to other IGO communications available online at www.igo.com.au. The report has been prepared in accordance with the Global Reporting Initiative (GRI) Sustainability Reporting Standards (Core option) and the GRI Mining and Metals Sector Supplement. Although we report against the GRI Core option, we also report above and beyond what is required to ensure full transparency. The report addresses those aspects deemed material to IGO and our stakeholders. For details on the approach of this Sustainability Report and a copy of the GRI Content Index, refer to page 106. The Sustainability Report covers activities currently under exploration and discovery, projects in development, managed operations and joint ventures for IGO and its subsidiary companies. All performance data relates to IGO managed operations only, unless otherwise stated. Additional information about sustainability performance at the Tianqi Lithium Corporation can be found online at www.tianqilithium.com.au. Information and full data about sustainability performance for Western Areas Limited assets are not included in the FY22 Sustainability Report given the completion of the transaction occurred on 20 June 2022. Limited Western Areas data can be found on page 105. We engaged an independent external assurance organisation, BDO Audit (WA) Pty Limited, to provide the Directors of IGO with assurance on selected subject matter and criteria, as explained in the independent limited assurance engagement letter on page 126. We value feedback from our stakeholders. Please forward any comments on this report or requests for additional information to contact@igo.com.au. Forward-Looking Statements This report includes forward-looking statements regarding future events, conditions, circumstances, and the future performance of IGO. Often, but not always, forward-looking statements can be identified by the use of words such as ‘may,’ ‘will,’ ‘expect,’ ‘intend,’ ‘plan,’ ‘estimate,’ ‘anticipate,’ ‘continue’ and ‘guidance,’ and may include statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs of production outputs. Such forecasts, projections and information are not a guarantee of future performance and involve unknown risks and uncertainties, many of which are beyond IGO’s control. This may cause actual results and developments to differ materially from those expressed or implied in this Sustainability Report. Relevant factors, including those identified as risk factors, are set out in our 2022 Annual Report. Forward-looking statements only apply at the date of issue. Except as required by applicable regulations or by law, IGO does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events. Acknowledgements We acknowledge the Traditional Owners of the land on which we operate and on which we work. We recognise their connection to land, waters, and culture, and pay our respects to their Elders past, present and emerging. Who We Are IGO Limited is an ASX 100 listed Company focused on creating a better planet for future generations by discovering, developing and delivering products critical to clean energy. We are a purpose-led organisation with strong, embedded values and a culture of caring for our people and our stakeholders, and believe we are Making a Difference by safely, sustainably and ethically delivering the products our customers need to advance the global transition to decarbonisation. Through our upstream mining and downstream processing assets, IGO is enabling future-facing technologies, including the electrification of transport, energy storage and renewable energy generation. IGO’s nickel business includes the Nova and Forrestania Operations and the Cosmos Project, all of which are located in Western Australia. Nova and Forrestania are operating underground mining and processing operations, while Cosmos is a development stage project with first production expected mid 2023. Our lithium interests are held via our 49% interest in Tianqi Lithium Energy Australia Pty Ltd (TLEA), an incorporated joint venture with Tianqi Lithium Corporation (Tianqi). TLEA owns upstream and downstream lithium assets, including a 51% stake in the Greenbushes Operation and a 100% interest in a downstream processing refinery at Kwinana in Western Australia to produce battery grade lithium hydroxide. IGO is also focused on discovering the mines of the future and has an enduring commitment to investing in exploration to ensure the world has a sustainable supply of clean energy metals into the future. FY22 Snapshot 2 Chair and CEO Message 4 Celebrating 20 Years 6 Our Purpose and Strategy 8 Key Operations and Projects 12 Our Sustainability Framework Our Approach to Sustainability 23 Our People 37 Safety and Wellbeing 45 Traditional Owners and Communities 51 Our Response to Climate Change 59 Environment 77 Business Integrity 85 Our Financial Contributions 93 Appendix Documents 98 Nova Solar Farm
IGO SUSTAINABILITY REPORT 2022— 3 2 —IGO SUSTAINABILITY REPORT 2022 Overview FY22 Snapshot In FY22, we continued to drive engagement and performance across the Company through the seven pillars of our sustainability framework. We have continued to adapt our strategy to incorporate sustainability into our business guided by these sustainability pillars and ensure we meet the expectations of all our key stakeholders. We recognise that these pillars are connected and together they ensure we achieve our overall business strategy and that we safely, sustainably and ethically deliver the products needed for a clean energy future. These pillars form the structure of our sustainability management, reporting, targets and measurements of progress. Read more about IGO’s sustainability framework on page 23. Our People Traditional Owners and Communities Business Integrity Safety and Wellbeing Our Response to Climate Change Our Financial Contributions Environment 89% of our people said they are proud to work for IGO, an increase on FY21 $686k Corporate giving contributions in FY22 2035 Aspiration to be carbon neutral across our direct operations and activities by 2035 29% 27% in FY21 of our overall workforce are female with a significant improvement across all disciplines1 43% 37.5% in FY21 Female representation on the IGO Board $8.0M 29%vs FY21 Total spend on Aboriginal owned or managed businesses in FY22 14.1 7%vs FY21 Increase in IGO’s Total Reportable Injury Frequency Rate (TRIFR), up from FY21 112ha Land rehabilitated in FY22 567t of materials were recycled at our Nova Operation 22% Decrease in groundwater withdrawal at the Nova Operation, demonstrating improved water management and recycling FY22 saw a small increase in the number of injuries and a decrease in the severity of injuries recorded Revised Code of Conduct adopted New external independent Speak Up reporting platform launched $6.5M Total payments made to the Ngadju during FY22 26% Increase in solar power generation at the Nova Operation in FY22 44,042ha Heritage surveys completed in FY22 73% of our suppliers of goods and services are located locally or within Western Australia $287.4M Payments to suppliers for goods and services in FY22 $7M-$10M Internal carbon price to generate commitments of $7M-$10M of internal funding in FY23, to reduce our total carbon footprint and invest in decarbonisation projects across the business ($3.7M in FY22) 81% Improved overall employee engagement score2 1. Combined overall female workforce (including Western Areas) for FY22 was 24% from 20 June 2022. 2. Based on a new measure introduced in FY22. Safety work programs planned for FY23 will deliver a safer workplace for our people
IGO SUSTAINABILITY REPORT 2022— 5 4 —IGO SUSTAINABILITY REPORT 2022 Overview Chair and CEOMessage It is our joint pleasure to present IGO’s Sustainability Report for the 2022 financial year. At IGO, sustainability is at the core of our business. It defines our purpose, as well as informing how we go about our business and how we engage with our stakeholders. We ensure that we operate our business in a manner which minimises impact on the planet and considers all of our stakeholders long into the future. Our approach is multi-faceted and our commitment to sustainable practices are engrained in our corporate culture, empowering our people to constantly challenge the way we do things and generate ideas on how we can do better. The mining industry has a critical role to play in tackling some of the many sustainability issues facing our world today. IGO identified this opportunity several years ago and embarked on a strategy focused on transforming our portfolio to be aligned with the clean energy industry, specifically by producing the products which are critical to the generation, storage and transmission of renewable energy. In FY22, we achieved excellent progress with this part of our strategy through the formal commencement of our investment into the TLEA joint venture and the acquisition of Western Areas Limited. These transactions, which resulted in IGO investing in a world-class integrated lithium business while also enhancing and expanding our nickel business, have transformed our business into a unique clean energy metals business. Both lithium and nickel play a critical role in the manufacture of highperformance lithium-ion batteries, a key technology which is enabling the electrification of transport in particular. This is IGO’s eighth dedicated Sustainability Report which aims to report on sustainability matters which are material to our stakeholders, and how we intend to address these matters into the future. Guided by our seven pillar sustainability framework, IGO aspires to transparently and comprehensively report on our sustainability practices and performance. Our commitment to high levels of sustainability performance and reporting has been consistently recognised by external parties including global ratings agencies. In FY22, IGO was included in the Dow Jones Sustainability Australia Index, the Dow Jones Sustainability Asia Pacific Index and the FTSE4Good Index, and recognised in the S&P Sustainability Yearbook for the third consecutive year. Having our achievements recognised in this way is outstanding recognition of everything our people do each day to make a difference. Reflecting on FY22, we are proud to note the excellent progress on several key areas of sustainability. Caring for the Climate Undoubtedly, climate change and the impact this phenomena is having on our planet is one of the greatest and most complex challenges we all face. IGO acknowledges the scientific consensus of a changing global climate and supports the position expressed by the Intergovernmental Panel on Climate Change (IPCC) that continued increases in greenhouse gas emissions could precipitate major social and economic consequences. IGO has an aspiration to be carbon neutral across our direct operations and activities by 2035 and in FY22, we have made excellent progress on several initiatives designed to reduce our carbon footprint. At Nova, where in FY22 we produced the majority of our group Scope 1 carbon emissions, we have committed to expanding the solar generation capacity and adding a Battery Storage System. This expansion will allow Nova to operate on 100% renewable energy in an “enginesoff” mode for up to nine consecutive hours during the summer and spring months – the first time this has been achieved at an operational mine site. This outstanding project, delivered with our energy partner, is expected to deliver a further 24% saving in carbon equivalent emissions, and demonstrates our commitment to decarbonisation. FY22 was also the first year in which we had our internal carbon price mechanism in place. This internal carbon price generates a pool of capital which IGO will commit to reduce its emissions profile, either through reduction/avoidance projects or via an investment in offset projects. In FY22, the carbon price generated $3.7M, which drove investment in battery storage technology at our exploration camps and Nova Operation, and procurement of Australian carbon offsets to complement our carbon neutral strategy. Read more on IGO’s climate strategy and programs of work on page 59. We are also pleased to report on the high levels of engagement on carbon reduction we have had with our various joint venture partners, including Tianqi. Both companies share a commitment to carbon reduction initiatives at the Kwinana Refinery and, through our joint interest in the Greenbushes Operation. We look forward to reporting on these initiatives throughout FY23 and beyond. Caring for Our People In FY22, we also retained our enduring commitment to our people – to ensure their safety and to enhance their physical, mental and financial wellbeing. While we have achieved consistent improvements in our lead safety indicators during FY22, we have seen our TRIFR increase from 13.2 at 30 June 2021 to 14.1 at 30 June 2022. As always, we can do better, and the Board and Executive Leadership Team (ELT) have confidence that the programs of work planned for FY23 should deliver a safer workplace for our people. Most importantly, the number of serious incidents has decreased, as well as the severity of injuries recorded. The increased prevalence of COVID-19 within the Western Australian community during FY22 represented a significant health and safety challenge for our people and their families. In response, our approach focused on ensuring our people had the time and assistance they needed to manage illness within their families, while also ensuring business continuity in the face of rising absenteeism. Thanks to excellent planning and robust systems and processes, IGO managed this period with a high degree of care for our people, while avoiding material disruption to our business. We would like to extend thanks to everyone at IGO for remaining adaptable and resilient during this complex time. While COVID-19 is now endemic within the community, IGO has maintained a high level of support for our people and their families. We are pleased that the commitment and investment we make in our people continues to foster high levels of employee engagement which is helping to contribute to our unique culture. This was reflected in our 2022 Engagement Survey where our people told us IGO was an ambitious, friendly, supportive and inclusive place to work, and that they feel valued and aligned with our values. Our culture remains a key differentiator for IGO, assisting us attract and retain the best people while fostering a work environment enjoyed by our people. Caring for Our Community With an expanding portfolio of operations and joint ventures, IGO remains committed to positive and collaborative engagement with our local community. As a purpose led organisation, we pride ourselves on Making a Difference for all of our stakeholders. As a significant exploration tenement holder, particularly across Northern and Western Australia, IGO maintains high levels of engagement with Traditional Owners, and ensures there are formal agreements in place with all parties before any works are undertaken. This same approach applies to our operating sites and, in FY23, we will commence a process to enhance interactions with Traditional Owners of lands which we have acquired via the Western Areas acquisition. Also in FY23, IGO will be working towards the development of a Reconciliation Action Plan (RAP) which we hope will significantly build on the working relationships and agreements we have in place with our Aboriginal stakeholders, by generating an ambitious shared framework that coordinates all our efforts in enhancing the three pillars of reconciliation: relationships, respect and opportunities for Aboriginal stakeholders. We look forward to sharing updates on the progress throughout the year. We are also proud of our ability to support a generous Corporate Giving Program which, in FY22 provided $686k in direct funding and in-kind support for a range of programs that create shared value for our communities. With a focus on child health and education, IGO provided support for 60 organisations, while our people donated over 314 hours of volunteer work across our community. Acknowledgements We are immensely proud of IGO’s sustainability performance and reporting, and we thank all of our people for the enthusiasm with which they support our purpose and make a difference every day. We are also thankful for the way in which our host communities, suppliers, contractors, industry associations and regulators have embraced our efforts to lead the way on sustainable initiatives and to help promote the outstanding work that is being done across our sector to ensure we, as an industry, continue to consider the needs of all our stakeholders. In closing, we would also like to thank our shareholders and proxy advisers for your support and constructive engagement on sustainability and governance issues throughout the year, and for your ongoing faith in the IGO Board and leadership team to deliver on your expectations. We trust this report provides a comprehensive and detailed overview of how IGO is seeking to make a difference and, as always, we encourage your feedback. Thank you for your ongoing support. Michael Nossal Chair Peter Bradford Managing Director and Chief Executive Officer Michael Nossal and Peter Bradford
IGO SUSTAINABILITY REPORT 2022— 7 6 —IGO SUSTAINABILITY REPORT 2022 Overview Celebrating 20 Years 2000 Company founded as Independence Gold NL Founding Managing Director and CEO Chris Bonwick appointed 2005 Discovery of the Tropicana Gold Project 2011 Acquisition of Jabiru Metals Acquisition of the Stockman Project Commenced construction at Tropicana 2002 IGO listed on the Australian Stock Exchange First ore from the Long Nickel Mine Tropicana joint venture formed with AngloGold Ashanti 2008 Discovery of the Moran Nickel Deposit at the Long Nickel Mine 2013 First gold from the Tropicana Gold Operation 2014 Peter Bradford appointed as Managing Director and CEO Note: 20 years since listing on the Australian Stock Exchange. 2020 Climate Change Policy issued aspiring to be carbon neutral across all our managed operations by 2035 Changed official name to IGO Limited 2021 IGO enters S&P ASX 100 Formation of lithium joint venture with Tianqi Lithium Divestment of 30% stake in the Tropicana Gold Operation IGO Climate Change Roadmap and adoption of internal carbon price 2018 Commercial production commenced at the Nova Operation Divestment of the Jaguar Operation Stated our support for recommendations of TCFD 2022 Acquisition of Western Areas Limited Established IGO’s offset portfolio, acquiring 19,600 Australian Carbon Credit Units Committed to an additional solar and battery system at Nova, displacing ~11,500t CO2-e per annum and allowing engines-off operations 2019 Divestment of the Long Nickel Operation Commissioned the 5.5MW Nova Solar Farm displacing ~6,500t CO2-e 2015 Acquisition of Sirius Resources, including the Nova Project First Sustainability Report published 2017 IGO’s strategic direction refocused to clean energy metals Divestment of the Stockman Project 2016 Commenced participation in the CDP Climate Change Initiative Sustainability reporting rated as sector ‘Leading’ by the Australian Council of Superannuation Investors (ACSI) 2009 Acquisition of the DeBeers database
IGO SUSTAINABILITY REPORT 2022— 9 8 —IGO SUSTAINABILITY REPORT 2022 Overview Our Culture Our Values Our Purpose Provides an environment where our people feel a strong sense of pride in the difference that they can make to future generations Values diversity, supports inclusion and cares about the safety and wellbeing of each other Provides learning and development opportunities for people to grow their career and thrive Is unique and strong because our people have been active in the creation of it Over time our culture has inspired and connected our people to continue to achieve and to perform through our celebrations and challenges. Our people’s response and strong performance through the challenges of COVID-19 is directly attributable to our strong culture and sense of shared purpose. Our culture has also enabled us to adapt and change – our clean energy strategy was embraced by our people who could see the opportunities for change and the difference they could make to the world. In a world where the one constant is change, our culture is our point of difference, something that cannot be copied and is our ultimate competitive advantage. The mining industry has a critical role to play in the decarbonisation of our planet. All of us at IGO fundamentally believe that our business is Making a Difference. We believe in a world where people power makes amazing things happen. Where technology opens up new horizons and clean energy makes the planet a better place for generations to come. Our people are bold, passionate, fearless and fun – we are a smarter, kinder and more innovative company. Our work is making fundamental changes to the way communities all over the world grow, prosper and stay sustainable. Our teams are finding and producing the products that will make energy storage mobile, efficient and effective enough to make long-term improvements to the lifestyle of hundreds of millions of people across the globe. How? Developments in battery storage technology are enabling the full potential of renewable energy to be realised by allowing energy produced from the sun, wind and other sources to be stored and used when and where it’s needed. This technology will impact future generations in ways we cannot yet imagine, improving people’s quality of life and changing the way we live. We believe in a green energy future and by delivering the products needed for tomorrow’s battery systems, we are making it happen. We are the IGO Difference. Rebuilding Exploration Team and Portfolio Divestment of Jaguar Operation Zn, Cu & Ag Tianqi Investment Li Nova Commercial Production Ni, Cu & Co Divestment of Stockman Project Cu & Zn Divestment of Long Nickel Operation Ni Divestment of stake in Tropicana Au FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 Nova Acquisition Ni, Cu & Co Western Areas Acquisition Ni Rationalised Exploration Team and Portfolio Diversified (gold & base metals) focus Clean energy metals focus Be Better Together We empower, support and respect each other. We act safely and with care, to the strengths of our people. Ignite The Spark We seek, question, innovate and create. We know that without a burning curiosity and bright thinking, we risk missing the really big opportunities. See Beyond We know that our actions today will impact the world of tomorrow. We believe our people, community and the environment really matter. Run Through The Sprinklers We find the fun in what we do. When our workplaces are healthier and happier, we are better. Never Stand Still We are bold, adventurous and excited for the future. We imagine new opportunities and seek new horizons.
IGO SUSTAINABILITY REPORT 2022— 11 10 —IGO SUSTAINABILITY REPORT 2022 Overview Our Strategy Strategic Pillar FY22 Key Focus Areas Producing a diverse suite of products made safely, ethically, sustainably and reliably • Diversified our commodity suite to produce key metal products for the battery storage and electric vehicle industries – lithium, nickel, copper and cobalt • recorded consistent improvements in our lead safety indicators and retained our focus on improving lag safety performance indicators; and • reduced overall carbon emissions across our controlled operations. Being customer focused - connecting with end users through vertical integration • Successfully transitioned to downstream processing of lithium hydroxide from our Kwinana Refinery, in joint venture with Tianqi; and • committed to exploring our opportunity to invest in a downstream nickel sulphate processing facility, enabled by the acquisition of Western Areas. Committing to being carbon neutral • Implemented our internal carbon price which created $3.7M of internal funding in FY22 for carbon removal and offset programs, to reduce our total carbon footprint and invest in decarbonisation projects across the business; and • committed to expansion of the solar farm at Nova, which will enable the Operation to run on 100% solar energy for extended periods over summer and spring. Engaging with our people who are bold, passionate, fearless and fun – a smarter, kinder, more innovative team • Increased our level of engagement with our team across multiple key areas, as measured by our FY22 Engagement Survey • continued to enhance our employee value proposition through new financial and non-financial benefits; and • maintained our focus on fostering our unique culture. Informed by our purpose, Making a Difference, our strategy is to become a globally relevant supplier of metals-based products that are critical for clean energy – to create a better planet. We are committed to delivering this strategy by: • producing a diverse suite of products made safely, ethically, sustainably and reliably • connecting with end users through vertical integration • committing to being carbon neutral; and • engaging with our people who are bold, passionate, fearless and fun – a smarter, kinder, more innovative team. In FY22, we have continued to grow and diversify our business in line with this strategy while also delivering on our commitment to our people and the environment. Our FY23 strategic priorities include: • maintain our focus on safety and care for our people and communities • successfully integrate the Western Areas assets into our nickel business • complete and deliver on an optimised project development strategy for Cosmos • complete technical studies and progress permitting for the Silver Knight development project • progress a pre-feasibility study into the potential development of Mt Goode • commence our evaluation of the opportunity to establish a downstream nickel sulphate operation • support our joint venture partners in executing brownfields growth in both our upstream and downstream lithium business • deliver exploration success, leveraging our best–in–class team and the latest technology and innovation • continue to develop our company-wide decarbonisation plan; and • complete and implement a Reconciliation Action Plan. Key Strategic Imperatives Operations We are in control, deliver on our promises, and continuously strive to do better. Governance We are enabled with systems, processes and technology to drive success. Planet We make a positive contribution towards decarbonisation and a better planet. Stakeholders We are a valued part of our communities and make a positive contribution. Innovation We unlock, share and act on ideas to transform our business at all levels. Growth We drive transformation through M&A, vertical integration and discovery. Customers We deliver quality products safely, ethically, sustainably and reliably. Financial We enable our growth through the optimal allocation of capital and funding solutions. People We are bold, passionate, fearless and fun – a smarter, kinder, more innovative team. Safety andWellbeing We keep ourselves safe and healthy and care about each other.
IGO SUSTAINABILITY REPORT 2022— 13 12 —IGO SUSTAINABILITY REPORT 2022 Overview Traditional Owner Groups by Region/Project IGO would like to acknowledge and pay our respects to Traditional Owner groups whose land we are privileged to work on, and whose input and guidance we seek and value within the operation of our business. We acknowledge their strong and special physical and cultural connections to their ancestral lands. Arunta North/Raptor Warlpiri, Anmatyerre Arunta South Warlpiri, Pintupi, Luritja Broken Hill Barkandji Burracoppin Ballardong (Noongar South West Settlement) Copper Coast Barngarla, Narungga, Ngadjuri, Nukunu Cosmos Tjiwarl Empress Springs Tagalaka Forrestania Ballardong (Noongar South West Settlement), Marlinyu Ghoorlie and Ngadju Fraser Range/Nova Operation Ngadju, Nangaanya-ku, Untiri Pulka, Upurli Upurli Nguratja Greenbushes South West Boojarah (Noongar South West Settlement) Irindina Eastern Arrernte East Kimberley Jaru, Koongie-Elvire, Malarngowem, Miriuwung-Gajerrong, Ngarrawanji, Yi-Martuwarra Ngurrara, Yurriyangem Taam, Gooniyandi, Purnululu West Kimberley Bunuba, Warrwa, Wanjina - Wunggurr Wilinggin, Dambimangari Kwinana Whadjuk (Noongar South West Settlement) Lake Campion Ballardong (Noongar South West Settlement), Marlinyu Ghoorlie Lake Mackay Jipalpa-Winitjaru, Kiwirrkurra, Pikilyi, Yarripilangu-Karrinyarra, Watakinpirri, Winparrku Metal Hawk JV Maduwongga, Marlinyu Ghoorlie, Kakarra Mt Padbury Nharnuwangga Paterson Nyangumarta, Martu, Karnapyrri, Ngurrara, Nyamal, Nyiyaparli Western Gawler Mirning, Wirangu, Kokatha, Yalata, Maralinga Tjaratja South Perth Whadjuk Noongar Key Operations and Projects Cu/Co/Au Head office Perth Operations Exploration projects Study/Construction Ni/Cu/Co/Au Li2O Note: IGO also has an interest (up to 80%) in the Frontier Project, an exploration project located in Greenland. Rare earth elements Fraser Range Project IGO 100% and various JVs Mt Alexander Project IGO 25% Greenbushes Project IGO up to 100% Lake Campion Project IGO 100% Kwinana Refinery IGO 49% Western Gawler Project IGO 100% and Iluka JV Greenbushes Operation IGO 24.99% Kimberley Project IGO 100% and various JVs Paterson Project IGO 100% and various JVs Copper Coast Project IGO 100% Broken Hill Nickel Project IGO up to 75% Nova Operation IGO 100% Cosmos Project IGO 100% Silver Knight (Sulphide) IGO 100% Forrestania Operation IGO 100% Lake Mackay Project IGO up to 70% Irindina Project IGO 100% Raptor Project IGO 100%
IGO SUSTAINABILITY REPORT 2022— 15 14 —IGO SUSTAINABILITY REPORT 2022 Overview Nickel Business IGO is a leading independent producer of nickel concentrate products and owns and operates a portfolio of projects spanning production, development, feasibility and exploration assets substantially located in Western Australia. Following the acquisition of Western Areas Limited in June 2022, IGO’s key nickel production assets include the Nova and the Forrestania Operations, both underground mining and processing operations which have long histories of successful operating and financial performance. The Cosmos Project is an underground development project which is forecast to produce its first nickel concentrate in mid CY23. In addition, as part of our strategy to connect with end users via vertical integration, IGO is assessing the opportunity to develop a downstream nickel processing operation to produce battery grade nickel sulphate for the lithium-ion battery industry. Nova Operation (Nickel, Copper, Cobalt) The Nova Operation (IGO 100%) is a high-grade nickel-coppercobalt deposit located in the Fraser Range, approximately 140km eastnortheast of Norseman, Western Australia. The Operation sits within the Great Western Woodlands. The Ngadju people are the Traditional Owners and custodians of this area, with their native title claim being recognised by the Federal Court on 21 November 2014. The Nova deposit was discovered in 2012 and the Operation reached commercial ore production capacity in 2017. Mining is conducted using underground stoping methods and processing comprises conventional crushing, grinding, flotation and filtration processes to produce high quality nickel and copper concentrates. Forrestania Operation (Nickel) The Forrestania Operation (IGO 100%) is 400km east of Perth, Western Australia and includes two underground mines, Flying Fox and Spotted Quoll, and the Cosmic Boy processing facility. IGO acquired Forrestania as part of the acquisition of Western Areas which completed in June 2022. Production from Forrestania commenced in 2006 and the Operation has successfully produced high quality nickel concentrates which have been sold under offtake to customers including BHP Nickel West and Jinchuan. Forrestania is a mature asset with an estimated life of mine to FY25. The Company productively engages with the Ballardong people, the Maduwongga people, the Ngadju people and the Marlinyu Ghoorlie people, the Traditional Owners of the Forrestania area and surrounding exploration programs. Cosmos Project (Nickel) The Cosmos Project (IGO 100%) is located 30km north of Leinster in Western Australia in one of Australia’s premier nickel belts. IGO acquired Cosmos as part of the acquisition of Western Areas which completed in June 2022. Nickel was first discovered at Cosmos in 1997 and has been previously mined via open pit and underground methods. IGO’s primary focus at Cosmos is the development of the Odysseus Underground Mine which is expected to deliver approximately 13,000t per annum over a mine life of 10 years. In addition, there is significant potential to extend the production profile through assessment of the large low grade resource at Mt Goode, which IGO is assessing as a potential future production source. At Cosmos, the Company continues to foster a collaborative working relationship with the Traditional Owners of the land, the Tjiwarl people. Lithium Business IGO’s lithium business is held via its 49% interest in TLEA, an incorporated joint venture with Tianqi (51%). TLEA owns and operates an integrated lithium business which includes a 51% interest in the Greenbushes Operation and 100% interest in the Kwinana Lithium Hydroxide Plant (Kwinana Refinery) both located in Western Australia. IGO’s investment in the TLEA Joint Venture formally commenced on 30 June 2021. FY22 FY21 FY20 FY19 Prospecting licences 4,080 2,110 - 400 Exploration licences 6,314,230 3,956,420 3,088,6491 3,992,640 Mining leases 50,540 10,470 4,671 4,670 Miscellaneous and other licences 12,514 8,267 4,072 4,054 Total IGO landholdings2 6,381,364 3,977,267 3,097,391 4,001,764 1. Figure includes the Greenland Exploration Licences, which reduced to 554,230ha in FY20. 2. Figure includes IGO managed tenure, including joint venture landholdings as at 30 June. IGO Landholdings byMineral Tenement (ha) Regional Exploration and Development IGO has an enduring commitment to the exploration and discovery of the next generation of clean energy metals projects. Our belief is that organic growth via successful exploration will be a key driver of transformational value creation and sustainable growth for our business. Our exploration strategy reflects our corporate strategy which is focused on nickel, copper and lithium, with our exploration portfolio encompassing projects which are prospective for high value magmatic nickel-copper and sediment hosted copper deposits. In addition, IGO has commenced the assessment of lithium exploration opportunities via TLEA. IGO’s commitment to exploration over several years has resulted in a portfolio of exceptional, belt-scale projects and a team who are highly talented and passionate about discovery. Armed with the best science and latest in innovative technology, IGO is poised for discovery success. In FY22, our mineral tenement portfolio (including Western Areas tenures) included projects in Western Australia, Northern Territory, South Australia, New South Wales and in Greenland, with a total land area of 63,814km2. Mineral Titles In FY22, IGO continued to consolidate our ground positions at our belt-scale exploration projects. IGO’s current exploration tenement holdings cover approximately 1% of Australia’s land area. Our total landholdings have increased over the last 12 months due to the acquisition of Western Areas. Exploration licences again represent the majority of IGO mineral tenements. A breakdown of total landholdings is presented below: Greenbushes Operation (Lithium – spodumene concentrate) IGO holds an indirect interest 24.99% stake in the Greenbushes Operation via the TLEA. Greenbushes is a large-scale, long life, low cost, hard rock lithium mine located approximately 250km south of Perth, Western Australia which has the highest Ore Reserve grade of any hard rock lithium mine operating globally. Greenbushes is a well-established operation with mining operations spanning many years with lithium operations first commencing in 1983. The site comprises a large open pit mine, four processing plants – three producing chemical grade lithium concentrates and one producing technical grade lithium concentrates, and associated support infrastructure to support mining and processing operations. Kwinana Lithium Hydroxide Refinery (Lithium – lithium hydroxide monohydrate) The Kwinana Refinery is one of the first fully automated battery grade lithium hydroxide facilities globally and the first of its kind in Australia. Kwinana is approximately 35km south of Perth, Western Australia, adjacent to major supply chain logistics. Importantly, Kwinana is only 200km from Greenbushes which supplies the lithium bearing concentrate that is converted to lithium hydroxide. The plant consists of two individual production trains which will produce 48,000t of lithium hydroxide in aggregate once in full production (24,000t per Train). Train 1 is currently in ramp up phase, with first battery grade production achieved in May 2022. Train 2 is partly complete, and the joint venture expects to complete construction by 2024 before commissioning in 2025. Kwinana Lithium Hydroxide Refinery Nova Operating Plant
IGO SUSTAINABILITY REPORT 2022— 17 16 —IGO SUSTAINABILITY REPORT 2022 Overview Supplying a Green Energy Future Nickel, lithium, copper and cobalt will play a critical role in the transition to a zero emissions future. IGO is uniquely placed, being the only company globally producing all four of these key battery raw materials. For the world to achieve net zero emissions targets in the coming decade, the global energy sector will need to transition from a reliance on fossil fuels to renewable energy generation, supported by efficient energy storage technologies. With the rapid evolution of battery technology and a reduction in costs, demand for the lithium-ion batteries market is forecast to grow by 700% by 20351, with much of this growth driven by the electrification of transport. According to Bloomberg New Energy Finance forecasts, passenger electric vehicle (EV) sales will reach nearly 40 million by 2030, with the global fleet reaching nearly 80 million by the same year. With this backdrop, IGO has focused on four key commodities which are critical in the manufacture of the latest, high efficiency lithium-ion batteries. Nickel Nickel is an essential component to a decarbonised future as it is a critical raw material in the manufacture of the cathode component of lithium-ion batteries. Nickel within the cathode helps deliver high energy density and greater storage capacity, enabling modern EVs to travel further between charges while retaining a high level of performance. Growth in demand for EVs, combined with a growing proportion of nickel within the cathodes themselves, will mean demand of high-quality nickel production will surge over the coming decade, with nickel demand from EVs expected increase 400% by 2030.2 Lithium Lithium, particularly in the form of lithium-hydroxide is another key input into lithium-ion batteries and is a critical raw material supporting the global transition to clean energy technologies. Lithium, which is both light and highly conductive, plays the critical role of carrying the electronic charge between the anode and the cathode within a lithium-ion battery. With the ability to be safely and repeatedly recharged over a long cycle life, lithium-ion batteries are currently the leading technology for EVs. With an average EV battery containing 10kg4 of lithium metal, and demand expected to increase more than sixfold by 2030, the world will need to discover and develop additional lithium resources to ensure adequate supply for this rapidly growing market. Copper and Cobalt Copper and cobalt are also key commodities in the shift towards zero emissions energy sources. Copper is a key component of EVs with this important metal used in the electric motors, batteries, inverters and wiring, as well as the supporting charging infrastructure on which EVs rely. The average EV battery contains around 60kg of copper compared to a conventional vehicle which contains around 8 – 22kg.4 However the copper demand will also be driven by the proliferation of renewable energy generation such as wind and solar which rely on copper to reticulate the energy they generate to where it is needed. As such, the transition to an electrified future will see significant increases in copper demand, with demand from the battery sector alone forecast to drive a fourfold increase by 2030. Cobalt is another important primary metal in lithium-ion batteries which help provide safety, durability and energy density. With much of the world’s cobalt supply sourced from geopolitically unstable regions, demand for cobalt, which is produced ethically, safely and sustainability should remain strong. Outlook to 2030 1. Source: Bloomberg New Energy Finance – May 2022. 2. Source: Bloomberg New Energy Finance – June 2022. Ni Cu Co Li Source: Bloomberg NEF – July 2022. Forecast EVDemand Growth 2022 – 2030 4x Ni 6x Li 4x Cu LithiumDemand fromLithium-Ion3 Passenger EV demand Stationary storage demand Consumer electronics demand E-bus demand Commercial EV demand Electric two-wheeler demand Other demand 0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2,500 1,500 2,000 1,000 500 Forecast Nickel Demand fromLithium-Ion1 0 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2,000,000 1,800,000 1,400,000 1,600,000 1,000,000 1,200,000 800,000 600,000 200,000 400,000 Demand (tonnes) Demand by application (kt) 3. Source: Bloomberg New Energy Finance – June 2022. 4. Source: Minerals Council Commodity Outlook to 2030.
IGO SUSTAINABILITY REPORT 2022— 19 Creating Shared Value Inputs Ore Reserves and Mineral Resources: We have high-quality mineral assets at our Nova, Forrestania and Greenbushes Operations and Cosmos Project, delivering the products critical for a green energy future. We are continuing to pursue strategic step-change organic growth through our portfolio of belt-scale exploration projects, nationally and internationally, to unlock the mines and ore reserves of the future. Natural Resources: The stock of natural resources or environmental assets that we use, including water, atmosphere, land and materials. Mining and processing activities are major users of water and energy, and our exploration activities require land access and clearing. We work hard to understand and mitigate our impacts on the environment and these natural resources. Plant and Equipment: Our procurement and contract teams establish relationships with suppliers and contractors to deliver plant, equipment and other solutions for efficient operational performance. Our management of goods and services contributes to the consistent and cost-effective delivery of our products. Financial Capital: This is our pool of necessary funds provided by banks, shareholders or generated through our operations. Our financial resources are allocated to where they will drive sustainable, positive cash flow and deliver optimal financial returns to our shareholders. Human Capital: Our people are our key asset. The competencies, capabilities, experience and drive of our people, employees and contractors alike ensures the success of our business and our capacity to create shared value. Relationships with Stakeholders: Strong relationships and engagement with our stakeholders is critical to gaining and maintaining our social licence to operate. We continue to build relationships based on mutual respect, transparency and trust. Outputs and Outcomes Our outputs include products that meet the global demand for growing renewable energy and clean energy storage markets. We supply the products critical to a green energy future. Our products delivered record revenue and underlying free cash flow in FY22, allowing us to continue to deliver on our purpose and strategy while creating shared value. We are also aware of the unavoidable environmental outputs, including waste, emissions and water discharge, as a result of our direct operations and production. As we strive to deliver returns to our shareholders, we also consider the value creation we can offer our diverse range of stakeholders. Through our business activities — employing people, paying taxes and royalties, procuring suppliers and engaging local businesses — we make a positive contribution to our host communities and the areas in which we operate. Beyond our direct mining activities, our commitment to Making a Difference is demonstrated through our corporate giving contributions, our commitment to environmental research projects, our decarbonisation initiatives, and our support and funding of industry technology development. 26,675t Nickel in concentrate 13,022t Copper in concentrate 982t Cobalt in concentrate 1.4 dry Mt Tailings 1,208ML Water consumption 62,359t CO2-e Scope 1 and 2 emissions $75.9M Salaries and wages paid $0.6M Corporate giving payments $6.5M Payments to Ngadju people $287.4M Payments to suppliers for goods and services $215.9M Tax, state royalties and other government payments Outputs Outcomes
IGO SUSTAINABILITY REPORT 2022— 21 20 —IGO SUSTAINABILITY REPORT 2022 Overview An Integrated Battery Products Business IGO upstream mining IGO downstream processing End users of IGO products Battery Supply Chain IGO’s strategy is to be a vertically integrated business of products critical to clean energy. Our business currently operates in exploration, project development, upstream mining and, through our lithium joint venture, downstream processing. RAWMATERIAL SUPPLY RECYCLED MATERIAL SUPPLY RAWMATERIAL SUPPLY & MARKET DELIVERY Cathode & Anode Production Production of precursor and finished active battery materials Battery Cell & Pack Manufacturing Manufacturing of battery cells and production of battery packs End User (Electric Vehicle) The majority of IGO supplied raw materials will be utilised in the EV market. We consider product stewardship responsibilities across our value chain Re-use & Recycling Re-use and recycling of battery materials through repurposing of batteries or recycling of raw materials Specialist Processing & Refining Committed to completing a feasibility study on Downstream Nickel Sulphate utlising the IGO ProcessTM LiOH Final product: Lithium Hydroxide NiSO₄ Final product: Nickel Sulphate Refining of chemical grade spodumene concentrates into high purity lithium chemical to highly purified chemical salts. The process includes extraction, solubilisation and crystallisation Mine Rehabilitation & Closure We take great care to look beyond the lifecycle of the mine and determine the rehabilitation and final closure plans of the site, ensuring ongoing real benefits for our host communities Exploration & Discovery We use innovative practices to explore our existing near-mine areas and regional belt-scale holdings in both greenfields and brownfields setting, to discover the mines of the future Development Project development involves the definition of economically mineable resources. Our company strategy and carbon neutral commitment drives mine planning and design, ensuring we construct the most safe, ethical, sustainable and reliable operations Mining Our mining operations involve the extraction of ore and its beneficiation to produce saleable products, including concentrates that contain nickel, copper, cobalt and lithium
IGO SUSTAINABILITY REPORT 2022— 23 A sustainable business is resilient, purposeful, agile and competitive. It looks beyond compliance and integrates a sustainability framework into all aspects of the business and value chain. Mining must play its part in addressing the environmental challenges of a carbon-constrained world and the expectations of society on us to create shared value and enable change, all while continuing to meet the evergrowing demand for our products. Decarbonisation is an urgent priority for us and the world. Recognising the threats posed by climate change, we believe the prospects of a low carbon future will result in substantial increase in the demand for metals required to enable clean energy technologies. At IGO, sustainability is the foundation of what we do; it is incorporated into all aspects of our business. To fulfill IGO’s purpose, we continually review the way we conduct our business as well as the long-term sustainability of our business operations. We pursue improvements and opportunities for growth to enable us to generate returns for our shareholders and explore ways to share the benefits our business creates. Wherever possible our approach is to manage the impacts associated with our activities on people, communities and the environment in which we operate. We continue to look for more responsible ways to conduct our business. IGO’s pathway to sustainable development is maturing as we integrate consideration of environmental, social, governance (ESG) and economic aspects across IGO’s strategy. We are increasing the disclosure of our sustainability performance throughout the year and continue to report our direct economic, tax and corporate giving contributions. Our approach to sustainability is driven by IGO’s sustainability framework, alignment with the United Nations (UN) Sustainable Development Goals (SDGs), our purpose of Making a Difference, our strategy to deliver a green energy future, and our desire to do the right thing. Although not a member of the ICMM, IGO apply the ICMM 10 Principles for Sustainable Development to guide our approach to managing sustainability risks and impacts, and to identifying improvement opportunities. The principles are integrated into our policies and standards. OurApproach toSustainability
IGO SUSTAINABILITY REPORT 2022— 25 24 —IGO SUSTAINABILITY REPORT 2022 Our Approach to Sustainability Sustainability is central to IGO’s purpose and strategy To be sustainable, we will meet the needs of the present without compromising the ability of future generations to meet their own needs. We will deliver the products needed for a clean energy future in a safe, ethical, reliable and environmentally conscious manner. We will create shared value with our employees, communities and Traditional Owners. We will focus on the decarbonisation of our business and supply chain and aspire to be carbon neutral across our direct operations and activities by 2035. Our purpose articulates this well and is united by a common desire across the Company to make a difference for future generations. Our sustainability framework is built on seven pillars, centred around our purpose, Making a Difference. We recognise ESG and commercial issues are often connected; they are part of a system that is constantly evolving. This model highlights the interconnectedness of each of these pillars in achieving the overall business strategy. These pillars form the structure of our sustainability management, our reporting, targets and measurements of progress, with the report structured to address each sustainability pillar. Our sustainability performance tables can be found in the following sections: We assess our sustainability performance across a range of indicators that are important to both IGO and our stakeholders. We have aligned our sustainability indicators with each pillar of the IGO sustainability framework. Sustainability performance is integrated into the key sections of this report and can be found at the beginning of each key section. We monitor the success of incremental and continuous work improvements against a range of qualitative and quantitative performance metrics. Our actions to maintain or improve performance in these areas are described throughout the report. Recognition and Awards in FY22 Australian Council of Superannuation Investors (ACSI) Comprehensive rating for ESG reporting in FY22. AFR Best Places to Work IGO ranked fourth in the Agriculture, Mining and Utilities category on the Best Places to Work List in FY22. DMIRS Community Partnership Award Winner IGO won the Community Partnership Award for our involvement in the Dandjoo Darbalung Program at St Catherine’s College (read more on page 56). Dow Jones Sustainability Index (DJSI) Included in the Dow Jones Australia Index for the third year, representing the top 30% of participating Australian companies that demonstrate leading sustainability performance. IGO was also included in the DJSI Asia Pacific Index representing the top 20% of companies in Asia Pacific Markets in terms of sustainability. Miningnews.net MNN Awards IGO won the Deal of the Year Award for our twin transactions to divest Tropicana and form a new lithium joint venture with Tianqi. CEO Peter Bradford won the CEO of the Year Award in FY22. S&P Global Yearbook Inclusion Representing the top 15% high performing sustainable companies in the metals and mining industry globally. IGO was the only Australian company in the Metals and Mining Industry featured. Australasian Reporting Awards (ARA) Gold award for our 2021 Sustainability Report. Diggers & Dealers Award Winner IGO won the Dealer of the Year Award in FY22 for our twin transactions to divest Tropicana and form a new lithium joint venture with Tianqi. Our People Page 37 Safety and Wellbeing Page 45 Traditional Owners and Communities Page 51 Our Response to Climate Change Page 59 Environment Page 77 Business Integrity Page 85 Our Financial Contributions Page 93 Measuring our Sustainability Performance OUR PURPOSE OUR STRATEGY OUR VALUES & BEHAVIOURS OUR CULTURE Making a Difference
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