2021 SUSTAINABILITY REPORT - MINERAL RESOURCES LIMITED - Amazon AWS
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MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT
CONTENTS WHO WE ARE VISION
To be recognised as a great Australian
CHAIR’S REVIEW
MINERAL RESOURCES AT A GLANCE
1
3
Mineral Resources Limited
acknowledges the Traditional MINERAL RESOURCES company and a leading provider of
innovative and sustainable mining
services and mining operations.
SUSTAINABILITY APPROACH
OUR BUSINESS CONDUCT 19
7 Custodians and their Ancestors
of the lands across Australia IS AN INNOVATIVE AND PURPOSE
HEALTH AND SAFETY
OUR PEOPLE
33
where we conduct our
business. LEADING MINING SERVICES To provide innovative and low-cost
solutions across the mining infrastructure
COMPANY, WITH A
47
ENVIRONMENT 61
MRL recognises and supply chain, by operating with integrity
and respect, working in partnership with
acknowledges the Traditional
GROWING WORLD-CLASS
CLIMATE CHANGE 81 our clients, our customers, our people
Custodians’ connection to and our community.
SOCIAL 99
Country and pays our respects
PORTFOLIO OF MINING
PERFORMANCE DATA TABLES AND GRI CONTENT INDEX 111
to their Elders and Leaders OUR VALUES
INDEPENDENT LIMITED ASSURANCE STATEMENT 113
past, present and emerging.
ABOUT THIS REPORT IMPORTANT NOTICE There are also limitations with respect to scenario
OPERATIONS ACROSS AGILE
• You
won’t hear “I don’t know” or
MULTIPLE COMMODITIES,
analysis and it is difficult for the Company to “I can’t” very often at MRL
This Sustainability Report is a summary of Mineral This document has been prepared by Mineral predict which scenarios (if any) may eventuate.
Resources Limited’s material sustainability topics Resources Limited (“MRL” or “the Company”). We employ the best in the business
Forward looking statements are not a guarantee to keep us moving forward
INCLUDING IRON ORE
and performance for the financial year ended This document has been prepared in accordance of future performance as they involve risks,
30 June 2021. All references to ‘MRL’, ‘the with the Global Reporting Initiative. MRL engaged uncertainties and other factors, many of which are
Company’, ‘the Group’, ‘we’, ‘us’ and ‘our’ an independent external Ernst and Young, • We act fast and seize opportunities
beyond the Company’s control and may cause
refer to Mineral Resources Limited to provide limited assurance over six of our results to be different from statements in this
AND LITHIUM.
(ABN 33 118 549 910) and the entities it controlled, sustainability performance indicators (refer to page • We think differently
document. The Company cautions against undue
unless otherwise stated. 115 of this report for a copy of the Independent reliance on any forward-looking statements.
Limited Assurance Statement).
References in this report to ‘year’ are to the This document does not purport to be all inclusive FAMILY
This document contains forward-looking or to contain all information which its recipients
financial year ended 30 June 2021 unless
statements, including, but not limited to may require to make an informed assessment of
otherwise stated. All dollar figures are expressed expectations regarding:
• We
show up for each other and have
the Company’s sustainability performance.
in Australian dollars (AUD) unless otherwise
• Climate change and climate related risks and
each other’s backs
stated. All references to ‘Indigenous’ people are To the fullest extent permitted by law, MRL and
opportunities • We
care for each other and the world
intended to include Aboriginal and/or Torres Strait its affiliates and their respective officers, directors,
• Future execution of MRL’s Net Zero Emissions employees and agents, accept no responsibility
Islander people. Figures in tables and in the text
Roadmap
around us
presented in this report may be rounded. Figures for any information provided in this document,
in text are generally rounded to one decimal place, • Achievements of net zero emissions in including any forward-looking statements, and • We
celebrate our differences
accordance with the projections from 2023-2050 disclaim any liability whatsoever (including for
whereas figures in tables are generally rounded
negligence) for any loss howsoever arising from because they make us stronger
to the nearest thousand. Discrepancies in tables • Development and implementation of
technologies or emission reduction projects any use of this document or reliance on anything
between totals and sums of components are due to contained in or omitted from it or otherwise arising • Above all else, we are family
rounding. • Trends in commodity prices and their supply and in connection with this. In addition, MRL accepts
demand no responsibility to update any person regarding
Any questions about this report can be sent to • Regulatory and policy developments any inaccuracy, omission or change in information ACHIEVE
esg.reporting@mrl.com.au or the Company’s expectations in this document or
When used herein, the words “anticipate”, any other information made available to a person, • Every
person in our business
“believe”, “could”, “estimate”, “expect”, “going nor any obligation to furnish the person with any
forward”, “intend”, “may”, “plan”, “project”, further information.
contributes to our success
MINERAL RESOURCES
“seek”, “should”, “will”, “would” and similar
expressions, as they relate to the Company, are This document should not be relied upon as a • We
do challenging work and we
intended to identify forward looking statements. recommendation by, or advice from, MRL to deal achieve incredible things
in its securities. This document should be read
The forward-looking statements are based upon in conjunction with MRL’s other periodic and • We
have the courage to take on the
WE’RE DIFFERENT
certain assumptions and information available to continuous disclosure announcements lodged with
Photography by Russell James. the Company as at the date of this document. impossible and the passion to make
the Australian Securities Exchange (ASX).
Creative direction by Ali Franco. These assumptions may prove to be incorrect. it happen
CHAIR'S REVIEW
ON BEHALF OF
Our skilled and committed team go Board’s four Independent Non-Executive transition while improving our business’
hand-in-hand with a sustainable future. Directors. We have also taken strides to cost effectiveness and guaranteeing high
We continue to invest heavily in the next improving the percentage of Indigenous levels of reliability for our customers.
THE BOARD, IT
generation of MRL employees, whether employees in our workforce and will be
MRL is committed to managing its
they be apprentices, graduates or trainees. accelerating those efforts in FY22. Our
environmental footprint by enhancing
It has again been rewarding to see so many progress to improve workforce diversity
water stewardship and resource efficiency.
second-generation MRL employees join our across all levels of the Company has been
IS MY PRIVILEGE
This report also outlines in detail
Company as it speaks volumes about the pleasing although we know that we have
our biodiversity management, water
positive, family-based culture at MRL. more work to do.
stewardship and enhanced framework for
TO PRESENT THE
We continued to promote our culture of Making sure we have positive relationships mine closures. These are important topics
ethical behaviour and have reviewed and with the Traditional Owners on whose lands and a core element of the Company’s
strengthened our Code of Conduct to we operate is critical to our operations. We sustainability approach.
SUSTAINABILITY
reaffirm and drive a culture of respect and have strengthened our commitments in this
FY21 has been an excellent year for all
inclusion at all levels of the MRL business. very important area with the development
involved with MRL and I am proud of
We are united in the view that sexual of our first Board-approved Reconciliation
the progress the Company has made
REPORT FOR THE
harassment, sexual assault and bullying Action Plan (RAP), which has been
We are proud to have made meaningful to improve sustainability outcomes in
are completely unacceptable and have submitted to Reconciliation Australia. Our
advances in our sustainability strategy this what has been a challenging operating
no place in any setting, including the steps over the past year have focused on
year, which has underpinned our strong environment. As we move forward, we will
workplace. establishing and maintaining meaningful,
operating and financial performance. As a need to continue to manage the impacts of
2021 FINANCIAL
mutually beneficial and sustainable
business, Mineral Resources is committed We put wellbeing and safety at the COVID-19 on our community and remain
long-term relationships and implementing
to best-practice Environmental, Social forefront of all we do and know mental vigilant to ensure that we keep the virus
agreements based upon mutual trust,
and Governance performances because health is just as important as physical out of our operations. I thank everyone
respect and success.
YEAR.
we know these areas are essential for a health. Our business is supported by an for embracing the measures MRL put in
sustainable future and are at the core of in-house psychologist and we have MRL prepared its inaugural Modern Slavery place to keep our operations virus free,
growing shareholder value. This includes prioritised mental health initiatives across Statement in 2021, which communicates ensuring the health of our workforce and
our never-ending push for innovative all of our activities, in Perth and on our our commitment to identifying and their families. It is a true testament to the
solutions to make our operations more remote sites. preventing modern slavery across our ‘can-do’ attitude of the MRL family that we
sustainable, environmentally considered supply chains. This past year, 93 per cent have continued and improved operational
We have invested in safety through
and energy efficient, and to enhance the of our supply base was in Australia as a performance despite the impacts of
improved hazard identification, controls
Company’s status as a leading employer result of our focus to prioritise procurement the virus.
and training, resulting in a reduction of our
and partner, with ambition for the highest in the communities in which we operate.
Total Recordable Injury Frequency Rate for Thank you to my fellow Directors for their
levels of transparency and governance. This not only benefits our Company and
FY21 to 2.31. This is an encouraging result commitment and dedication. On behalf of
the resilience of our supply chain but
We further strengthened our commitments given our workforce increased in size by the Board, I also extend my sincere thanks
contributes to the further development of
during the past year by joining the United 39 per cent over the year. Unfortunately, we to our Managing Director, Chris Ellison, and
the communities in which we operate.
Nations Global Compact. We look forward experienced our first Lost Time Injury in two his leadership team for continuing to grow
to sharing with you over the coming years when one of our employees sustained The Board has spent considerable time the business while raising the bar year-
years how we integrate the Ten Principles a serious finger injury. Notwithstanding overseeing the Company’s sustainability on-year on our sustainability efforts and
covering the areas of human rights, labour, a high-quality medical response and strategy, especially our response to climate outcomes.
environment and anti-corruption into successful treatment, this incident change. Our business recognises the
our business strategy, the MRL culture reinforced our need and commitment to need for meaningful action to address
and the Company’s daily operations. remain vigilant so that we can maintain safe climate change and the role MRL can play.
We are dedicated to expanding on our operations and ensure the safety of our During the year, we announced the goal
performance metrics to enhance disclosure workforce. to achieve net zero emissions by 2050. To Peter Wade
under the guidance of the Ten Principles, help MRL achieve this, we have developed Non-Executive Chairman
We continue to work on gender equity
the United Nations’ Sustainability a Roadmap to Net Zero Emissions that is
and workforce diversity. In the past year
Development Goals and leading informed by comprehensive modelling, and
we increased female representation in our
frameworks such as the Global Reporting which incorporates decarbonisation into
workforce to 17 per cent, exceeding our
Initiative and the Sustainability Accounting our planning and decision making.
gender diversity target. We welcomed
Standards Board. This Sustainability Report describes how
Susie Corlett as a Non-Executive Director in
MRL is positioned for the low-carbon
January, achieving gender parity among the
1 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 2
MRL AT A GLANCE: WHERE WE OPERATE
WESTERN AUSTRALIA
GERALDTON
KEY
MRL IRON ORE
MRL LITHIUM
UTAH POINT KOOLYANOBBING
CSI MINING SERVICES SOUTH WEST CREEK
KALGOORLIE
NORTHERN TERRITORY
PORT HEDLAND
MRL GAS PERMITS
RAIL LINE
ONSLOW
PERTH PARKER
RANGE
WODGINA
MT MARION
ROAD KWINANA
BUNGAROO KUMINA
SOUTH
MINERAL
SEA PORT IRON
KEMERTON
TOM PRICE VALLEY MARILLANA
OFFICE/WORKSHOP
OPHTHALMIA ESPERANCE
MRL DEVELOPMENT PROJECT WONMUNNA NEWMAN
TOWN
RESOURCES WESTERN AUSTRALIA
AT A GLANCE
SOUTH AUSTRALIA
GERALDTON
KEY
MRL IRON ORE
MRL LITHIUM
KOOLYANOBBING
CSI MINING SERVICES
KALGOORLIE
MRL GAS PERMITS
RAIL LINE
PERTH PARKER
RANGE
MT MARION
ROAD KWINANA
SEA PORT
KEMERTON
OFFICE/WORKSHOP
ESPERANCE
MRL DEVELOPMENT PROJECT
TOWN
3 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 4
MRL AT A GLANCE: VALUE CREATION
INPUTS VALUE CREATION BUSINESS MODEL FY21 OUTPUTS FY21 OUTCOMES
HUMAN CAPITAL: HUMAN CAPITAL
Our employees and contractors LEVERAGING OFF OUR EXISTING FOOTPRINT,
TOTAL MATERIAL MOVED
131.6Mt
(5,000+ as at 30 June 2021) that INFRASTRUCTURE AND SKILL SET, WE HAVE BUILT TRIFR 2.31
provide the skills, experience and
knowledge required to undertake
A STRONG AND DIVERSIFIED PORTFOLIO IN LTIFR 0.12
our business activities. MINING SERVICES AND MINING OPERATIONS, Employee wages and benefits paid $479.9m
PROVIDING LONG-TERM SUSTAINABLE GROWTH, Overall female representation 16.98%
WITH 20-50 YEAR BUSINESS HORIZONS. Graduates, apprentices and trainees 130
NATURAL CAPITAL: IRON ORE PRODUCTION
19.5Mt
The natural resources such as water, We achieve this by:
land, materials and energy required to NATURAL CAPITAL
undertake our business activities. • Targeting stranded deposits and partnering with junior miners Energy consumption 4,359,773GJ
• Acquiring a project stake and developing it at the lowest cost in an Solar energy generation 3,462GJ
SOCIAL AND RELATIONSHIP CAPITAL: expedited time-frame
Scope 1 & 2 GHG emissions 298,336tCO2e
SPODUMENE PRODUCTION
485kt
The relationships we have with
• Optimising the mine plan, increasing efficiency and maximising profitability
communities, government agencies Total material moved 131,565Mt
and other stakeholders, as well as our • Monetising the asset and divesting for maximum capital gain Rehabilitated land 1,220ha
reputation and brand that are essential
to our social licence to operate and the • Retaining the life-of-mine, build-own-operate mining services contracts
long-term sustainability of our business. SOCIAL AND RELATIONSHIP CAPITAL
MINING SERVICES
Community contributions $5.25m
VOLUME INCREASE
20%
MINE
FINANCIAL CAPITAL: DEVELOPMENT Suppliers screened for Modern Slavery 15
The pool of funds provided by Payment to Federal, State and Local governments $693m
shareholders, bondholders and banks,
or generated through investments and
operations that are required to undertake FINANCIAL CAPITAL
our business activities. P E R AT E - B REDUCTION IN GHG
-O UI EMISSIONS INTENSITY
5%
L Underlying net profit after tax $1,103m
LOGISTICS N
W
Share price $53.73
D
RAIL, ROAD,
MINING
O
PORT MINING SERVICES
-O
MANUFACTURED CAPITAL: Dividends $2.75
E - BUILD -
The manufactured tangible objects
W N - OPERA
MRL provides full
such as buildings, plant, equipment pit-to-port solutions,
and infrastructure that are required to MANUFACTURED CAPITAL
with the aim to continually
COVID-19 SCREENINGS
84,207
undertake our business activities. improve efficiency and, Capital expenditure $745m
ultimately, its return
T
Mines owned/operated 5
RA
on capital.
TE
INTELLECTUAL CAPITAL:
E
-B P Crushing & processing operating plants 26
Intangible aspects such as intellectual UIL O
D - OWN -
property, organisational knowledge,
RETURN ON INVESTED INTELLECTUAL CAPITAL
systems and processes required to
FACILITIES CAPITAL (ROIC)
38.6%
undertake our business activities. VILLAGES, UTILITIES, CRUSHING, NextGen 2 modular crushing plant 5Mtpa-30Mtpa
AIRPORTS SCREENING,
PROCESSING Spodumene concentrate processing 1.15Mtpa
Kemerton lithium hydroxide 50ktpa capacity
5 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 6
OUR SUSTAINABILITY APPROACH 7 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2020 SUSTAINABILITY REPORT I 10
OUR SUSTAINABILITY APPROACH
WE STRIVE TO OUR SUSTAINABILITY JOURNEY
Our sustainability reporting covers activities
OUR MATERIAL SUSTAINABILITY TOPICS
IDENTIFYING AND PRIORITISING OUR MATERIAL
GENERATE
for which MRL and its subsidiaries have SUSTAINABILITY TOPICS
operational control and is prepared in
MRL applies GRI reporting principles for defining report content by
accordance with the Global Reporting
SHAREHOLDER
undertaking a thorough review process to understand our material
Initiative (GRI) Standards (Core option),
sustainability topics. The materiality assessment is undertaken
the Sustainability Accounting Standards
annually to identify the most critical sustainability issues influencing
Board (SASB), and recommendations from
VALUE BY MANAGING
our ability to create and maintain value in the short, medium and
the Taskforce on Climate-related Financial
long term.
Disclosures of the Financial Stability Board.
See our 2021 Sustainability Performance Our FY21 materiality process is informed by:
Data Tables, available on our website for a
OUR MATERIAL copy of the GRI and SASB content index.
MRL has obtained external assurance for six
• Stakeholder engagement
• Investor roadshows
SUSTAINABILITY of our sustainability performance indicators • Material issues defined by peer organisations
(refer to page 115 of this report for a copy • Mining
industry analyses undertaken by prominent advisory
of the Independent Limited Assurance firms
TOPICS AND Statement).
MRL has joined the United Nations Global
• Media reviews
• Criteria
assessed by Environment, Social and Government (ESG)
MAINTAINING OUR
Compact (UNGC) and outlines in this report rating agencies
how the Ten Principles – covering human
rights, labour, environment, and anti- • SASB – Metals and Mining Sustainability Accounting Standard
SOCIAL LICENCE
corruption – are integrated into our business • United Nations (UN) Global Compact’s Ten Principles
strategy, culture and daily operations. • UN Sustainability Development Goals
MRL is committed to continually improving
TO OPERATE. its sustainability performance to provide
the metals and minerals which the world
Research &
Identification of
Prioritisation of
Sustainability
Validation
of Material
Sustainability Report
High
1
2 1 Operating with ethics and integrity
Importance to stakeholders
Sustainability
needs to transition to a low-carbon future. Topics Topics with Senior 3
We strive to make a difference through our
Topics Management
5 4 2 Maintaining a safe working environment
that promotes health and wellbeing
6
leadership in mining services and operations, Figure 1: Materiality process 3
Attracting and retaining talent while
developing a diverse and inclusive
encouraging responsible business practices workplace
and advancing the UN Sustainable MRL’s Sustainability Working Group conducted a prioritisation 4
Managing our environmental impacts
by enhancing water stewardship and
Development Goals. MRL has a Sustainability exercise to consider the ‘sustainability topics’ influencing resource efficiency
Policy outlining our commitment to stakeholders and the significance of their economic, environmental
5
Understanding and managing our
climate-related obligations, risks and
sustainability risk and opportunity and social impacts. Key management personnel validated the list of opportunities under a changing climate
identification, management, performance sustainability topics identified as material to MRL.
6
Developing and maintaining
measurement and reporting. strong community and stakeholder
relationships
As a result of the analysis, six material topics were identified: Business Impact High
The Sustainability Policy is supported by business ethics and integrity, health and safety, people,
a suite of governance policies including environment, climate change and social engagement.
a Human Rights Policy, Anti-Bribery and Figure 2: MRL Material Sustainability Topics
Corruption Policy and a Supplier Code While this is consistent with the previous reporting period, some of
of Conduct. Our governance embeds the material sustainability topics have been updated as shown in
sustainability throughout our business and is Figure 2.
supported by a cross-functional Sustainability
Table 1 shows our material sustainability topics mapped against the
Working Group, which develops our
UN SDGs and UN Global Compact’s Ten Principles. MRL’s progress
sustainability strategy and manages and
and performance in each of these areas is highlighted, with further
monitors key sustainability topics.
detail provided in each section of this report.
11 I I MINERAL
9 MINERALRESOURCES
RESOURCESLIMITED
LIMITED2021
2021SUSTAINABILITY
SUSTAINABILITYREPORT
REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 10
OUR SUSTAINABILITY APPROACH (CONTINUED) OUR SUSTAINABILITY APPROACH (CONTINUED)
Relevant Ten Relevant Material Relevant Ten Relevant
Material Principles of Sustainable Principles of Sustainable
Theme Sustainability An Overview of MRL’s Performance Theme Sustainability the United Development An Overview of MRL’s Performance
Topic the United Development Topic
Nations Goal Nations Goal
Business 1. Operating MRL is committed to operating ethically and with integrity in all business activities and People. 3. Attracting • Established the Safe and Respectful Behaviours Steering Committee
Ethics and with ethics stakeholder relationships. (Continued) and retaining • Updated
the Code to reinforce that discrimination, bullying and harassment,
Integrity and integrity talent while including sexual harassment, will not be tolerated under any circumstances
MRL’s Code of Conduct and Business Integrity (the Code) represents our commitment developing • Joined
National Association of Women in Operations (NAWO) as a Gold
to uphold the highest standards of ethics in our business practices. a diverse, Corporate Member
In FY21, MRL: inclusive and • Increased
female participation by 1.6 per cent compared to last year, employing an
fair workplace additional 194 female workers. Met and exceeded our target achieving 17 per cent
• Improved our e-learning package on the Code and set annual training requirements overall female participation
• Widely communicated our Whistleblower Policy and supporting Whistleblower • Forty-eight
female operators participated in our innovative Entry Level Operator
Procedure Haul Truck Program, designed to provide opportunities for women within industry
• Maintained our independent external whistleblowing service, MRL Integrity Assist
• Released our first Modern Slavery Statement Environment 4. Managing MRL is committed to environmental management that maintains our licence to
• Enhanced our sustainable procurement and modern slavery screening program environmental operate in an environmentally responsible and sustainable manner. Our approach to
impacts and managing environmental issues follows the precautionary principle.
Health 2. Maintaining MRL strives to maintain a healthy and safe working environment for our employees, enhancing
and Safety a safe contractors and visitors; and enhance the wellbeing of our people. resource In FY21, MRL:
working efficiency • Commenced
our water stewardship pathway and reviewed our water risk
environment In FY21:
assessments across operations
that • MRL
continued to achieve strong health and safety performance and has made
promotes significant strides in mental health, wellbeing and critical risk management • Enhanced
our disclosure and reporting on air quality, water withdrawal, tailings,
health and biodiversity, waste, land disturbance and rehabilitation for the second year
• COVID-19
remains a significant part of our health and safety activities and we
wellbeing continued to manage the changes it brings. MRL’s response has focused on three key • Developed
a corporate closure framework to support transition to closure
areas: effectively and ensure all risks are well managed, aligned where possible with the
- Keeping our people safe and well aspirations of the UN’s Decade on Ecosystem Restoration (2021 – 2030)
- Maintaining safe and reliable operations • Completed
a detailed gap assessment across our directly controlled and
- Supporting our communities managed tailings facilities to measure compliance with Global Industry Standard
on Tailings Management (GISTM) requirements. The assessment identified no
• MRL continued to support the broader resources industry by undertaking COVID-19 operational gaps
testing with its gold-standard PCR testing equipment for over 60 organisations
• MRL
developed and trained 255 Critical Risk Management (CRM) leaders within the Climate 5. Understanding MRL is committed to understanding and managing our climate related obligations,
business and trained 1,784 additional people in the CRM Program Change and managing risks and opportunities as we operate within an increasingly carbon constrained and
• 40
staff have been trained and now accredited as Mental Health First Aiders through our climate- changing climate.
our partnership with Lifeline WA related In FY21, MRL:
obligations,
• 700
staff have participated in mental health literacy modules – promoting a greater • Set a target of net zero operational emissions by 2050
risks and
likelihood of accessing support earlier
opportunities • Developed our Roadmap to Net Zero Emissions to support the transition to a
People 3. Attracting MRL is committed to creating a fair, diverse and inclusive workplace that supports us in under a low-carbon future and decarbonise our operations, informed by detailed climate
and attracting and retaining talent. changing modelling of our operations
retaining Our people are the foundation of our business and instrumental to our success. We climate
talent while • Conducted
workshops across the business, generating over 300 decarbonisation
understand developing a diverse and inclusive workplace brings many benefits to ideas, of which 83 were considered for integration into our roadmap
developing our business including improved organisational performance and positive impacts on
a diverse, organisational culture, reputation, employee attraction, retention and performance. • Investigated alternative energy and low-carbon solutions
inclusive
In FY21, MRL: • Increased
our contributions to support climate transformation through industry
and fair
partnerships
workplace • Commenced construction of a new head office with sustainability ratings targeted at:
-
6-Star Green Star Design and As Built V1.2 • Reviewed
our key climate-related risks and opportunities in line with the Taskforce
- Platinum WELL V2 on Climate-Related Financial Disclosures (TCFD)
-
5-Star National Australian Built Environment Rating System (NABERS)
• Updated our leave entitlements: Table 1 (continued): Mapping MRL Sustainability Topics to UN Sustainable Development Goals
-
Maternity leave approach to include superannuation
-
Formalised approach for paid family and domestic violence leave and support
-
Formalised the process for the flexible work arrangements procedure
Table 1: Mapping MRL Sustainability Topics to UN Sustainable Development Goals
11 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 12
OUR SUSTAINABILITY APPROACH (CONTINUED) OUR SUSTAINABILITY APPROACH (CONTINUED)
OUR TARGETS
Material Relevant Ten Relevant
Theme Sustainability Principles of Sustainable An Overview of MRL’s Performance Board approved sustainability performance targets have been set against each of our material sustainability topics. In the development of
the United Development
Topic Nations Goal these targets, we considered our material sustainability risks and global challenges – with a focus on those defined by the UN Sustainable
Development Goals and UN Global Compact Ten Principles. In FY22, MRL will target:
Social 6. Developing MRL strives to develop and maintain strong community and stakeholder relationships as
and part of our social licence to operate. Ethics and Integrity Climate Change Social and Community
maintaining In FY21, MRL:
strong • Zero incidents of bribery and corruption • Net zero operational emissions by 2050 • Zero major social incidents
community • Submitted
our first Board-approved Reconciliation Action Plan (RAP) to Reconciliation
and Australia • ≥ 90 per cent employee completion rate of • Implementation of Wonmunna 2.1MW peak • ≥
80 per cent of our employees completing
stakeholder our Business Code of Conduct and Integrity solar cultural learning and awareness training at all
• Updated
our Community Grievance Mechanism to better respond to stakeholder training as at end of year1
relationships concerns • MRL head office energy efficiency, purchasing MRL owner/operator sites1
• ≥ 90 per cent employee completion rate of 100 per cent carbon neutral electricity
• Implemented
our Stakeholder Engagement Management Plan to engage effectively our in-person Safe & Respectful Behaviours • Implementation
of our RAP with endorsement
with local communities, government and other key stakeholders on environmental, training from Reconciliation Australia
land access, heritage and community matters during all phases of our operations • Conduct risk review of 100 per cent of our
• Maintained
and built new relationships with more than 70 community partners, supplier base
increasing our community contribution spend to $5.25 million • ≥ 90 per cent high-risk rated suppliers
• Provided
apprenticeships, traineeships, work experience and graduate programs screened for modern slavery risks
that focus on introducing new talent to our organisation. We recognise the benefits
of having a diverse workforce and are proud that our female representation of Safety, Health and Wellbeing Environment Diverse and Inclusive Workplace
apprentices for 2021 has more than doubled compared to last financial year
• Zero
fatalities and total permanent disabling • Zero major environmental incidents 4
• ≥
17.1 per cent female participation in our
injuries/illnesses • Completion of ≥ 85 per cent of our planned workforce5
Table 1 (continued): Mapping MRL Sustainability Topics to UN Sustainable Development Goals • < 4.5 Annual Total Recordable Injury Frequency progressive rehabilitation across operations • 10 per cent increase year-on-year Indigenous
Rate (TRIFR)2 • ≥ 90 per cent seed collection against target representation for full time employment
• < 4.5 Annual High Potential Event Frequency • Develop business wide waste management • ≥ 70 per cent employee engagement in our
Rate (HiPoFR) strategy company wide perception survey, Your Voice.
OUR VOLUNTARY SUSTAINABILITY INITIATIVES • > 15,000 Annual Lead Indicator Frequency • Completion of water efficiency audits across • ≥ 80 per cent Your Voice engagement score
Rate3 operations related to key Diversity and Inclusion indicators
MRL is involved with a number of voluntary sustainability initiatives, including: • ≥ 5 per cent of our workforce engaging in • ≥ 90 per cent actions completed of our gender
• Completion of water modelling across
professional proactive psychological support operations aligned with the Mineral Council of equity strategy
• Reporting in accordance with the GRI’s Standards services through either EAP and/or in house Australia – Water Accounting Framework
• Aligning climate disclosure with recommendations from the TCFD consultations
• The Ten Principles of the United Nations Global Compact (inaugural communication on progress disclosed as part of our 2021
Sustainability Report and our 2021 Annual Report) Based on employees engaged with the company for greater than three months.
1
• Increasing adoption of SASB 2
T
RIFR external target is reset given growth and changing composition of the workforce in FY22.
3
MRL leading indicators incorporate - Audits, Inspections, Hazards, Meetings and Observations.
• Participation in the Carbon Disclosure Project (CDP) Climate Change Questionnaire 4
Identified as environmental incidence with an actual level consequence of ≥4.
• Reporting to the Bloomberg Gender Equality Framework 5
In FY21, our workforce achieved 17.0 per cent (rounded) female participation, exceeding our previous Board approved target of 16.1 per cent. Proposed 17.1 per cent target is set to increase
• Alignment with the UN Sustainable Development Goals participation given company growth and changing workforce composition in FY22.
• Engaging with other top-tier organisations that assess the ESG performance – such as FTSE Russell, MSCI, Sustainalytics and Institutional
Shareholder Services (ISS) – all of which rate us based on publicly available information Table 2: FY22 Sustainability Performance Targets
• Continuing to assess alignment with other emerging frameworks
OUR STAKEHOLDERS
Stakeholder engagement is an important mechanism to inform our materiality assessment and understand the broader impact of our
business. MRL engages with a diverse range of stakeholder groups as part of managing our social licence to operate. We continue to
work on improving and maintaining our reputation and relationships with our stakeholders. Table 3 shows our key stakeholder groups; our
engagement mechanisms; the issues that matter to our stakeholders and how we manage those issues.
13 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 14
OUR SUSTAINABILITY APPROACH (CONTINUED) OUR SUSTAINABILITY APPROACH (CONTINUED)
Stakeholder How We Engage What Matters How We Manage What Matters
Group
Finance • Investor roadshows • Financial performance • ASX announcements
providers and
• Full-year and half-year results • Disclosure of the • Disclosure of quarterly exploration and mining activities report,
investors
briefings management of material half-year and full-year financial report and Annual Report
• Annual General Meeting sustainability topics that • Disclosure of annual Sustainability Report
influence the ability of MRL to
• Ad hoc meetings, create and sustain value • Information packs released to the ASX, along with full-year and
conversations and periodic half-year results, that provide additional supporting information
reporting to analysts, financial • Remuneration to assist in understanding, analysing and projecting our
institutions, ratings agencies, • Corporate governance financial performance
proxy advisors, retail investors • Participation in verification of ESG rating agency requests
and institutional investors
• Engagement with key institutional investors on corporate
governance and sustainability
Suppliers • Ad
hoc meetings and • Providing
Goods and services • MRL
utilises a P2P platform, which provides business
conversations with suppliers free from Modern Slavery intelligence to our procurement systems and processes
• Quarterly meetings with to MRL • Implementing our Sustainable Procurement and Modern
critical, high-spend suppliers • Supplier diversity Slavery screening program and supplier onboarding form. The
• Getting paid on time new form considers critical ESG matters and allows for more
detailed information on local and Indigenous status to be
• Continuity of business captured
relationships
• Strengthened capacity of our procurement function through
• Indigenous and local a dedicated Sustainability Procurement role increasing
procurement oversight and management of our supply chain sustainability
• Supplier engagement performance
• Sustainable sourcing
Employees • MRL intranet • Safe and supportive working • Our
COVID-19 response
and environment
• SnapComms application • Our Safety Management Framework ensures we have a healthy
contractors
– which allows company • Health and wellbeing and safe working environment
messages to be distributed to • Fair employee remuneration • Our Code of Conduct and Business Integrity defines the way we
MRL staff via MRL owned and and recognition do business
personal devices
• Employee Assistance Program, a professional and confidential
• SMS of critical messages service for employees and their families funded by MRL
• MRL weekly newsletter sent • WorkPerks – our way of saying thanks to our people by
to staff via SnapComms, email offering access to a range of deals and discounts for retail,
and posted on noticeboards accommodation, travel, health and wellness and financial
and the MRL intranet services
• Noticeboards • Extensive health and wellbeing programs as we recognise
• Networking events employee mental health as a top priority
• Daily shift meetings • Support for training and professional development
• Site and office inductions • Market reviews of remuneration
• Other training events and • Offering flexible working arrangements
programs
• Team meetings
• Barbecues, morning teas and
fundraising events
• Industry events
• NAIDOC Week activities
• Managing Director “town
hall” sessions
Table 3: Stakeholder Engagement
15 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 16OUR SUSTAINABILITY APPROACH (CONTINUED)
Stakeholder How We Engage What Matters How We Manage What Matters
Group
Trade unions • Unions undertake regular • Employment
terms and • Unions
are provided right of entry access to all MRL sites as
visits to MRL sites conditions per legislation
• MRL responds to union issues • Site accommodation • Employees and their representatives are consulted over any
and queries as and when • Safe working environment major workplace change
appropriate • Employees are remunerated at market comparable rates
• Local jobs and opportunities
• A high standard of site accommodation is provided
• MRL has a strong safety management framework in place
• MRL provides local training and apprenticeship opportunities
Customers • Building
strong customer • Quality
product or service • Quality
services and products are provided as per customer
relationships with timely and delivered on schedule agreements
transparent communication according to customer • Committing to continuous improvement of our practices and
on our sustainability agreement processes
performance, action plans
and commitments
• Customer visits
Joint venture • Meetings
at a frequency •
Meeting contractual obligations • Engaging on key matters in joint venture partnerships
partners agreed by both parties • Reliability of supply
• Joint venture reporting of • Product quality
financial and operational
results • Value-add and profitability
Local, State • Ongoing liaison with • Legal
and regulatory •
Submissions as part of legal and regulatory approval processes
and Federal regulators and government compliance • Notifications when applying for new tenements
Government agencies • Local economic development • Regulatory reporting
• Attendance at local council • Employment opportunities
• Increasing proactive engagement CREATING VALUE THROUGH OUR BUSINESS
meetings • Land management and
rehabilitation The value-added statement in Table 4 demonstrates the value that MRL generated and distributed in FY21. We continue to increase the
Local and • Support and participation in • Local
economic development •
Agreements with Native Title groups value distributed to Federal, State and Local Governments; employees; our suppliers and contractors year-on-year.
Indigenous local community events • Community partnerships
• Contracting and employment
communities • Ad hoc information sessions opportunities • Community donations and sponsorships FY19 FY20 FY21
and meetings with community • Employment and work experience opportunities such as $M $M $M
• Heritage conservation and
members respect for sites traineeships
• Heritage surveys • Land management and • Engaging with local Indigenous business opportunities
Value generated Revenue 1,512.0 2,124.6 3,733.5
• Meetings with claim groups rehabilitation • Capacity building through local Indigenous business
and Traditional Owners • Indigenous community health opportunities, facilitating cross industry support to expand the
customer base
Value distributed1 Payment to Federal, State and Local Governments 124.1 185.1 692.7
Other • Notifications
when applying • Access
to land when putting • Establishing access agreements
tenement for new tenements utilities or infrastructure in place
holders/ Employee wages and benefits paid 265.5 359.3 479.9
private land • Land management and
holders rehabilitation
Industry • Attendance
at industry • Developing
local business • MRL
maintains membership with various industry associations, Community contributions 1.9 2.7 5.25
associations association events opportunities including:
• Participation in industry • Advancing the development - Association
of Mining and Exploration Companies (AMEC)
forums of standards and constructive - Chamber of Minerals and Energy (CME) Payments to suppliers and contractors 891.4 1,035.4 1,227.2
policy - Australian
Petroleum Production and Exploration
• Jobs in their region Association (APPEA)
- Chamber
of Commerce and Industry of WA (CCI), Investment in infrastructure and exploration and innovation 857.8 399.2 774.5
Chambers of Commerce for Kalgoorlie, Esperance,
Kwinana, Rockingham and the Mid West
- Future
Energy Exports Cooperative Research Centre Financing costs 19.4 97.6 86.4
(FEnEX CRC) as a supporting partner
• In FY21, MRL joined the National Association of Women in Values referenced from the MRL FY21 Cash Flow Statement
1
Operations (NAWO)
• MRL participates in industry association forums and provides Table 4: Value generated and distributed
feedback on requests for comments
Table 3 (continued): Stakeholder Engagement
17 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 18OUR BUSINESS CONDUCT 19 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2020 SUSTAINABILITY REPORT I 18
OUR BUSINESS CONDUCT OUR BUSINESS CONDUCT (CONTINUED)
WE ARE MATERIAL TOPIC 1: OPERATING WITH ETHICS
AND INTEGRITY
The Board has three sub-committees that operate on a
recommendation basis:
Sustainable development and leadership are embedded
throughout MRL with focused committees and working groups
COMMITTED
formed with a targeted range of expertise and management
• The
Remuneration Committee provides assistance and
representation. The following committees and groups have
PRINCIPLE 1: Businesses should recommendations to the Board in fulfilling its responsibilities
provided support and guidance with respect to MRL values,
TO OPERATING
support and respect the protection in overseeing the overall remuneration strategy of the
sustainability strategy requirements and future growth:
of internationally proclaimed Company and its specific application to the Managing Director,
human rights; and Key Management Personnel and Non-executive Directors. • COVID-19 Steering Committee
ETHICALLY
PRINCIPLE 2: make sure that they The Remuneration Committee also reviews and makes • Decarbonisation Pathway Working Group
are not complicit in human rights recommendations to the Board on diversity within the Company,
measurable objectives for achieving diversity and progress • Diversity and Inclusion Steering Committee
abuses.
AND WITH
against such objectives. • Modern Slavery Working Group
• The
Nomination Committee provides assistance and • Risk Working Group
PRINCIPLE 10: Businesses should recommendations to the Board to ensure the best possible
INTEGRITY IN
work against corruption in all its Directors are selected, appointed to the Board and retained. • Safe and Respectful Behaviours Steering Committee
forms, including extortion and It also assists with providing advice on the appointment and • Sustainability Working Group
bribery. succession of the Managing Director.
ALL BUSINESS
• The
Audit and Risk Committee assists the Board in fulfilling its
MRL believes consistent and proper business conduct creates responsibilities providing oversight to accounting and reporting
loyalty and trust with our stakeholders and we are committed to practices, risk identification and management, internal and
ACTIVITIES AND
promoting a culture of ethical corporate behaviour. This is aligned external audit functions, treasury and capital management
to Our Purpose, which is to operate with integrity and respect, practices, taxation practices and compliance with applicable legal
working in partnerships with our clients, our customers, our people and regulatory requirements.
STAKEHOLDER
and our community and underpinned by Our Values, to care for
each other and the world around us. MINERAL RESOURCES LIMITED BOARD OF DIRECTORS
As an Australian company operating in Australia, MRL is governed
RELATIONSHIPS. by Australian Federal and State Government legislation,
which promotes fair-trading and competition while protecting
the environment and the community. This strong regulatory
REMUNERATION COMMITTEE NOMINATION COMMITTEE AUDIT AND RISK COMMITTEE
environment has set the foundation for a robust and stable • Supports remuneration strategy • Provides assistance to ensure the • Oversight of internal and external audit
OUR VISION, PURPOSE & VALUES
• Reviews diversity within the Company, best possible Directors are selected, functions
economy with strong governance practices. appointed by the Board, and retained
STAKEHOLER ENGAGEMENT
developing measurable objectives for • Risk management systems and processes
Our corporate governance practices, which set the rules, achieving diversity and progress tracking • Reviews Board renewal and succession • Treasury and capital management practices
planning
relationships, systems and processes by which MRL is directed
and controlled, are core to our stable operating environment. Our EXECUTIVE LEADERSHIP TEAM
governance supports us to actively and effectively manage our
Review governance processes | Performance tracking Sustainability and climate related strategy
exposure to governance risks and opportunities. Good corporate Monitoring sustainability management systems and frameworks | Agree priorities and actions
governance also supports our performance and promotes investor
confidence.
CORPORATE GOVERNANCE SUPPORTING SUSTAINABILITY LEADERSHIP GROUPS
MRL’s corporate governance structure consists of a Board of
COVID-19 Diversity and Safe and Sustainability Risk Modern Slavery Decarbonisation
Directors (Board), whose role is to represent shareholders, promote Steering Inclusion Respectful Working Working Working Pathway
and protect the interests of the Company, and to build sustainable Committee Steering Behaviours Group Group Group Working
value for our shareholders (refer to Figure 3). The Board discharges Committee Steering Group
Committee
this responsibility by having regard for the interests of all relevant
stakeholders. As defined by the Board Charter, the Board also has a
specific responsibility to oversee the management of sustainability OPERATIONS
by considering the social, ethical and environmental impact of Our operating mines and mining services have on ground subject matter expertise to implement and monitor sustainability
the Company’s operations, approving policies and monitoring strategy, defining and reviewing site level targets to drive performance.
compliance with the Company’s sustainability policies and practices.
Figure 3: Sustainability Governance
21 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 22OUR BUSINESS CONDUCT (CONTINUED) OUR BUSINESS CONDUCT (CONTINUED)
During FY21, the Charters for the Board, Remuneration Committee, Nomination Committee and Audit and Risk Committee were reviewed Focus Area Activities
and updated with the assistance of external corporate governance specialists. All Charters are available on the Corporate Governance
section of the MRL website. Governance • Update
of our Code of Conduct and Business Integrity training
• Conduct human rights and Anti-Bribery and Corruption review of operations
Corporate Governance Principles and Recommendations
• Develop our first Modern Slavery Statement
As an ASX listed company, MRL is required to publicly report its application of the ASX Corporate Governance Council Corporate • Increase Sustainability Memberships (i.e. Global Compact of the United Nations)
Governance Principles and Recommendations. For FY21, MRL has followed the fourth edition of the Principles and Recommendations,
which is structured around eight key principles: Performance/ • Implement
the Critical Risk Management Program throughout the business
Projects
1. Lay solid foundations for management and oversight: A listed entity should clearly delineate the respective roles and responsibilities of • Strengthen
our focus on mental health wellbeing, training and awareness
its Board and management and regularly review their performance.
• Develop
a health and hygiene management system
2. Structure the Board to be effective and add value: The Board of a listed entity should be of an appropriate size and collectively have the
• Change
management for WELL building standard – employee wellness and mental health
skills, commitment and knowledge of the entity and the industry in which it operates, to enable it to discharge its duties effectively and
to add value. • Adopt
Paris-aligned climate-related risk framework with an ambition to become a net zero company for operational emissions by
2050
3. Instil a culture of acting lawfully, ethically and responsibly: A listed entity should instil and continually reinforce a culture across the
• Conduct
cross functional workshops engaging operations and top leaders on climate change to develop our roadmap to work
organisation of acting lawfully, ethically and responsibly. towards achieving net zero emissions by 2050
4. Safeguard the integrity of corporate reports: A listed entity should have appropriate processes to verify the integrity of its corporate • Continue
development of a frontline coaching and leadership program
reports.
• Expand
our support for existing managers and new recruits
5. Make timely and balanced disclosure: A listed entity should make timely and balanced disclosure of all matters concerning it that a
• Enhance
our succession and career planning activities
reasonable person would expect to have a material effect on the price or value of its securities.
• Appoint
an apprentice mentor and develop a program to support new and future apprentices
6. Respect the rights of security holders: A listed entity should provide its security holders with appropriate information and facilities to
allow them to exercise their rights as security holders effectively. • Enhance
our data analytics capabilities to ensure our remuneration and benefits are competitive in the market
7. Recognise and manage risk: A listed entity should establish a sound risk management framework and periodically review the effectiveness • Formalise
process to support flexible work arrangements
of that framework. • Develop
a Geographic Information System to capture, analyse and disseminate environmental spatial data throughout the business
a. W
ithin this Principle is Recommendation 7.4, which states that: ‘A listed entity should disclose whether it has any material exposure • Improve
processes for planning and implementation of rehabilitation and closure works for operational sites and those in care and
to environmental or social risks and if it does, how it manages or intends to manage those risks’. maintenance
8. Remunerate fairly and responsibly: A listed entity should pay Director remuneration sufficient to attract and retain high quality Directors • Development
of Sustainable Procurement approach and processes to ensure compliance with the Modern Slavery Act 2018 (Cth)
and design its executive remuneration to attract, retain and motivate high quality senior executives and to align their interests with the • Enhance water reporting in accordance with the Water Accounting Framework
creation of value for security holders and with the entity’s values and risk appetite.
Refer to MRL’s Corporate Governance Statement for further information about our Corporate Governance practices against the ASX
Reporting • Continue to improve and simplify environmental systems and processes
Corporate Governance Council Corporate Governance Principles and Recommendations.
• Strengthen our focus on internal monthly sustainability reporting and KPI tracking
Sustainability Working Group
• Ongoing
improvement of sustainability reporting through the annual Sustainability Report, participation in voluntary questionnaires
MRL embeds sustainability throughout our business, supported by a cross-functional Sustainability Working Group to advise the such as CDP Climate Change and the Bloomberg Gender Equality Index
management and monitoring of key sustainability topics. The Sustainability Working Group meets every other month and includes senior
• Enhanced engagement with ESG rating agencies
representatives from Human Resources, Environment, Community, Health and Safety, Procurement, Energy, Investor Relations, Finance and
Sustainability.
Table 5: Sustainability Plan Focus Areas
The Sustainability Working Group developed an FY21 Sustainability Plan that outlined three focus areas for the year: governance, project
performance and reporting, as shown in Table 5. The Sustainability Working Group provides the Board with regular updates on progress
against the FY21 Sustainability Plan.
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