Mineral Resources : Environmental, Governance and Social (ESG) Report

Environmental, Social and Governance (ESG) Report

2018

Table of Contents

Introducon

1

Who we are

Our Key Issues

Health and Safety

3 6 7

People

Climate Change

Environment

Community and Indigenous Engagement

11 14 17 19

About this report

This Environmental, Social and Governance (ESG) report presents a summary of the ESG performance of Mineral Resources Limited's operaons for the financial year ended 30 June 2018.

All references to 'MRL', 'the Company', 'the Group', 'we', 'us' and 'our' refer to Mineral Resources Limited (ABN 33 118 549 910) and the enes it controls, unless otherwise stated.

References in this report to a 'year' are to the financial year ended 30 June 2018 unless otherwise stated. All dollar figures are expressed in Australian dollars (AUD) unless otherwise stated.

All references to 'Indigenous' people are intended to include Aboriginal and/or Torres Strait Islander people.

Environmental, Social and Governance at MRL

In response to investor interest, and in alignment with broader industry trends, we are pleased to release MRL's first stand-alone Environmental, Social and Governance (ESG) report. This report presents a summary of our key ESG issues in advance of a more comprehensive report to be released next year. The report, which should be read in conjuncon with our annual report, aims to provide investors and all interested pares with an understanding of the ESG risks and opportunies that inform our strategy and shape our future, as well as an understanding of our performance across these issues.

ESG performance and associated risk management have always been core to the mining services and extracve industries, and in many respects these industries have been at the forefront of the corporate ESG agenda. We understand that to be considered as one of the great Australian companies, we have a duty to operate responsibly and minimise the impact of our operaons on the environment and communies.

We recognise that we are at the start of our journey in formalising our approach to ESG reporng. While we have provided a snapshot of our sustainability performance in previous annual reports, this report provides MRL with an opportunity to have an honest and accountable conversaon with our stakeholders. This report discusses our successes and challenges across our key issues, avoiding overly corporased language, to plainly set out where we have succeeded and where we need to work harder.

We believe that sound ESG performance is parcularly important given the mistrust of mining companies' ESG performance and, in parcular, the broad mistrust with which many large corporaons are currently being viewed. We understand that our stakeholders, in parcular our investors, are interested in the extent to which a company is openly aware of its major ESG risks and the extent to which it can adequately describe the mechanisms to effecvely manage and respond to its major and emerging risks and opportunies; including being able to deliver long-term value.

At MRL, we connually seek opportunies to add value to 'business as usual' pracces, both for our own business and for our customers in the mining sector. In our primary role as a mining services provider, and through our research and development programmes, we seek to develop innovave, low cost soluons across the enre mining value chain; thereby reducing processing costs and improving the efficiency, effecveness and financial viability of resource recovery.

Our focus on adding long term value to the Australian mining industry is demonstrated by our investments in commodies with growing importance and demand such as lithium, as well as the development of downstream processing within Australia, to ensure the domesc retenon of more of the wealth derived from Australia's resources. Even though our investment decisions are sll subject to a number of regulatory approvals, we believe that development of downstream processing will posion Australia, and Western Australia in parcular, to be a key player in the broader segment of the global energy storage value chain; supporng a greater diversity of employment opportunies and providing environmental benefits by lowering carbon emissions, while doing so. This demonstrates the strategic nexus between our industry and ESG performance generally, and underscores our interest in this important area of performance and disclosure.

2 Mineral Resources Limited ESG Report 2018

As I remarked in my opening leer in our Annual Report, the global economic and polical climate is entering a sustained period of volality that must be front of mind for all business leaders. What is remarked upon less oſten, but which is increasingly clear to many, is that the drivers of this volality are disproporonally environmental, social and governance-related in nature. From changes to the global energy landscape, import restricons to curb industrial emissions, or geo-polical upheaval driven by resentment of unequal wealth distribuon - these are all ESG issues of central relevance to our sector and many others.

It is therefore mely that we are publishing our inaugural ESG report, a first step in what will become the plaorm for driving forward our ESG strategy and performance. While the big picture of ESG is important, so too are the basics. In this report we set out in detail the state of our safety performance and our approach to the stewardship of the land on which we have the privilege to operate. We seek to be clear on those areas that demonstrate our genuineness of intent and also those areas where significant improvement is needed.

As always we welcome your feedback, and I encourage you to contact us with any queries.

Peter Wade Chairman

MRL is an innovave and leading mining services company, with a growing world-class porolio of mining operaons across mulple commodies.

With decades of experience in the mining services sector, we look for opportunies to expand and diversify our core business through our mining operaons and our innovaon in the mining services sphere.

Our aim is to be recognised as one of the great Australian companies and a leading provider of innovave and sustainable mining services.

We understand that this can be achieved only by operang with integrity and respect, focussing on the safety and wellbeing of our people, working in partnership with our stakeholders and challenging the status quo by acvely exploring new ideas and opportunies.

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OUR CORE BUSINESS

• - Open Pit Mining

• - Contract Crushing (BOO)

• - Mineral Processing

• - Road & Rail Bulk Haulage

• - Port Operaons

• - Site Services

• - Energy

• - Markeng and Shipping

Our Porolio

MRL offer a wide range of general mining services, including contract crushing, processing, site services, mine-to-port logiscs, ship loading and markeng and export of resource products.

In addion, we are a producer of commodies, owning and operang several mine sites, including iron ore and lithium.

To remain compeve, we recognise the importance of innovaon in providing sustainable and low cost soluons across the mining infrastructure value chain and are currently developing:

• • A light-weight rail system, a low cost mine-to-port transport soluon for bulk commodies and freight with possible worldwide applicaons

• • Manufacture of carbon fiber equipment specifically designed to produce structural components for the mining industry

• • The design and construcon of a connuous feed pilot plant for producing synthec graphite from natural gas and iron ore.

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• • Brockman Mining - Marillana

• • Cleveland Cliffs - Kooyanobbing

• • Wodgina Lithium Pty Ltd

• • Hexagon Resources JV McIntosh Flake Graphite Project

• • Carbon Art

• • NextGen Crushing

• • Synthec Graphite Producon

• • Pilbara Infrastructure Project

  • - Bulk Ore System (BOS)

  • - Port Stockyard

  • - South West Creek