Environmental, Social, and Governance (ESG)

Poseidon continues to be proactive in embedding environmental, social and governance (ESG) considerations into its operating practices, particularly within the Black Swan Bankable Feasibility Study (BFS). Further enhancing our ESG focus, a highly reputable ESG consultant was engaged to review the ESG credentials of the BFS and the wider business. This review was completed by RPM Global.

The BFS maintained an ESG focus to ensure the proposed nickel concentrate production would meet the expectations of our stakeholders. Our ESG framework focuses on achieving identifiable benefits to the environment, social and governance elements by delivering real benefits to all Black Swan stakeholders.

The Company’s formal ESG policy and framework is aligned with the Minerals Council of Australia Enduring Value framework, the United Nations Sustainable Development Goals and the recommendations of the Taskforce on Climate related Financial Disclosures.

RPM Global’s review noted Poseidon has adopted relevant ESG frameworks and developed an appropriate action plan for its corporate and Black Swan operations to align with those frameworks.

While progressing the BFS and pre-production works for Black Swan the following ESG initiatives were advanced:

• Western Power confirmed sufficient grid power allocation to support the restart of Black Swan. Western Power has commenced engineering and design studies with allocated power supply expected to be available following a number of infrastructure upgrades on the Black Flag distribution lines. RPM Global’s assessment of the use of grid power determined a 77,500tCO2-e carbon emission benefit over the life of the project compared to diesel generated power.
• Mining approval was received for retreatment of the Silver Swan tailings. Blending this material with disseminated ore produces a saleable concentrate from material that would otherwise be considered mineralised waste.
• Entered into a collaboration arrangement with Canadian company ARCA to undertake a desktop study  assessing the potential for carbon sequestration within the ultramafic tailings of either Lake Johnston or Black Swan.

Additional ESG initiatives pertaining to Lake Johnston and Windarra were advanced:

• Completed a review of the heritage site register and completed a heritage survey at Lake Johnston  prior to undertaking the drilling program along the Western Ultramafic Unit.
• Commenced discussions with the owner of a nearby gold production facility to potentially treat the Lancefield and Windarra gold tailings, reducing the environmental impact footprint of this project compared to building a processing facility at Windarra.

Poseidon continues to assess opportunities to implement ESG benefits into the project. An important element for the Project remains selecting reputable contractors whose policies and procedures are aligned with the Company’s ESG expectations, including in relation to environmental management, safety, social engagement, diversity and indigenous relations.

The RPM Global review of the BFS report identified the following recommendations:

• Continue development and implementation of the Company ESG framework and incorporate sustainability reporting into the Company’s internal and external reporting;
• Develop an ESG execution plan for the Black Swan restart and ensure appropriate resources are employed to achieve ESG initiatives identified in the BFS;
• As reported in the BFS, implement processes to ensure contractors align with Poseidon’s ESG policies and procedures and operate with the best interest of our stakeholders;
• Identify opportunities, where practicable, to reduce project greenhouse emissions from larger sources, namely haul and load in mining, and grinding, crushing and flotation in processing; and
• Continue to progress industry best practice mine closure planning.

The Company is focused on ensuring our ESG framework, policies and procedures are sufficiently developed to assist the Black Swan restart when the nickel price environment supports project commencement. In the meantime, the Company will continue to embed ESG considerations into all parts of the business with an aim to deliver value for all stakeholders.