Mineral Resources : 2021 Sustainability Report – reading view

MINERAL RESOURCES LIMITED

2021 SUSTAINABILITY REPORT

CONTENTS

CHAIR'S REVIEW

MINERAL RESOURCES AT A GLANCE

SUSTAINABILITY APPROACH

OUR BUSINESS CONDUCT

HEALTH AND SAFETY

OUR PEOPLE

ENVIRONMENT

CLIMATE CHANGE

SOCIAL

PERFORMANCE DATA TABLES AND GRI CONTENT INDEX

INDEPENDENT LIMITED ASSURANCE STATEMENT

1

3

7

19

33

47

61

81

99

111

113

Mineral Resources Limited acknowledges the Traditional Custodians and their Ancestors of the lands across Australia where we conduct our business.

MRL recognises and acknowledges the Traditional Custodians' connection to Country and pays our respects to their Elders and Leaders past, present and emerging.

WHO WE ARE MINERAL RESOURCES IS AN INNOVATIVE AND

LEADING MINING SERVICES COMPANY, WITH A GROWING WORLD-CLASS PORTFOLIO OF MINING OPERATIONS ACROSS

VISION

To be recognised as a great Australian company and a leading provider of innovative and sustainable mining services and mining operations.

PURPOSE

To provide innovative and low-cost solutions across the mining infrastructure supply chain, by operating with integrity and respect, working in partnership with our clients, our customers, our people and our community.

OUR VALUES

AGILE

ABOUT THIS REPORT

This Sustainability Report is a summary of Mineral Resources Limited's material sustainability topics

and performance for the financial year ended

30 June 2021. All references to 'MRL', 'the Company', 'the Group', 'we', 'us' and 'our' refer to Mineral Resources Limited

(ABN 33 118 549 910) and the entities it controlled, unless otherwise stated.

References in this report to 'year' are to the

financial year ended 30 June 2021 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. Figures in tables and in the text

presented in this report may be rounded. Figures

in text are generally rounded to one decimal place, whereas figures in tables are generally rounded

to the nearest thousand. Discrepancies in tables between totals and sums of components are due to rounding.

Any questions about this report can be sent to

[e-mail]

Photography by Russell James.

Creative direction by Ali Franco.

IMPORTANT NOTICE

This document has been prepared by Mineral Resources Limited ("MRL" or "the Company").

This document has been prepared in accordance with the Global Reporting Initiative. MRL engaged an independent external Ernst and Young,

to provide limited assurance over six of our sustainability performance indicators (refer to page 115 of this report for a copy of the Independent Limited Assurance Statement).

This document contains forward-looking statements, including, but not limited to expectations regarding:

• Climate change and climate related risks and opportunities
• Future execution of MRL's Net Zero Emissions
  Roadmap
• Achievements of net zero emissions in accordance with the projections from 2023-2050
• Development and implementation of technologies or emission reduction projects
• Trends in commodity prices and their supply and demand
• Regulatory and policy developments

When used herein, the words "anticipate", "believe", "could", "estimate", "expect", "going forward", "intend", "may", "plan", "project", "seek", "should", "will", "would" and similar expressions, as they relate to the Company, are intended to identify forward looking statements.

The forward-looking statements are based upon certain assumptions and information available to the Company as at the date of this document.

These assumptions may prove to be incorrect.

There are also limitations with respect to scenario analysis and it is difficult for the Company to predict which scenarios (if any) may eventuate.

Forward looking statements are not a guarantee of future performance as they involve risks, uncertainties and other factors, many of which are beyond the Company's control and may cause results to be different from statements in this document. The Company cautions against undue reliance on any forward-looking statements.

This document does not purport to be all inclusive or to contain all information which its recipients may require to make an informed assessment of the Company's sustainability performance.

To the fullest extent permitted by law, MRL and its affiliates and their respective officers, directors, employees and agents, accept no responsibility for any information provided in this document, including any forward-looking statements, and disclaim any liability whatsoever (including for negligence) for any loss howsoever arising from any use of this document or reliance on anything contained in or omitted from it or otherwise arising in connection with this. In addition, MRL accepts no responsibility to update any person regarding any inaccuracy, omission or change in information or the Company's expectations in this document or any other information made available to a person, nor any obligation to furnish the person with any further information.

This document should not be relied upon as a recommendation by, or advice from, MRL to deal in its securities. This document should be read in conjunction with MRL's other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX).

MULTIPLE COMMODITIES, INCLUDING IRON ORE AND LITHIUM.

MINERAL RESOURCES

WE'RE DIFFERENT

• You won't hear "I don't know" or "I can't" very often at MRL
  We employ the best in the business to keep us moving forward
• We act fast and seize opportunities
• We think differently

FAMILY

• We show up for each other and have each other's backs
• We care for each other and the world around us
• We celebrate our differences because they make us stronger
• Above all else, we are family

ACHIEVE

• Every person in our business contributes to our success
• We do challenging work and we achieve incredible things
• We have the courage to take on the impossible and the passion to make it happen

CHAIR'S REVIEW

ON BEHALF OF THE BOARD, IT IS MY PRIVILEGE TO PRESENT THE

SUSTAINABILITY REPORT FOR THE 2021 FINANCIAL YEAR.

We are proud to have made meaningful advances in our sustainability strategy this year, which has underpinned our strong operating and financial performance. As a business, Mineral Resources is committed to best-practice Environmental, Social and Governance performances because we know these areas are essential for a sustainable future and are at the core of growing shareholder value. This includes our never-ending push for innovative solutions to make our operations more sustainable, environmentally considered and energy efficient, and to enhance the Company's status as a leading employer and partner, with ambition for the highest levels of transparency and governance.

We further strengthened our commitments during the past year by joining the United Nations Global Compact. We look forward to sharing with you over the coming years how we integrate the Ten Principles covering the areas of human rights, labour, environment and anti-corruption into

our business strategy, the MRL culture and the Company's daily operations. We are dedicated to expanding on our performance metrics to enhance disclosure under the guidance of the Ten Principles, the United Nations' Sustainability Development Goals and leading frameworks such as the Global Reporting Initiative and the Sustainability Accounting Standards Board.

Our skilled and committed team go hand-in-hand with a sustainable future. We continue to invest heavily in the next generation of MRL employees, whether they be apprentices, graduates or trainees. It has again been rewarding to see so many second-generation MRL employees join our Company as it speaks volumes about the positive, family-based culture at MRL.

We continued to promote our culture of ethical behaviour and have reviewed and strengthened our Code of Conduct to reaffirm and drive a culture of respect and inclusion at all levels of the MRL business. We are united in the view that sexual harassment, sexual assault and bullying are completely unacceptable and have no place in any setting, including the workplace.

We put wellbeing and safety at the forefront of all we do and know mental health is just as important as physical health. Our business is supported by an in-house psychologist and we have prioritised mental health initiatives across all of our activities, in Perth and on our remote sites.

We have invested in safety through improved hazard identification, controls and training, resulting in a reduction of our Total Recordable Injury Frequency Rate for FY21 to 2.31. This is an encouraging result given our workforce increased in size by

39 per cent over the year. Unfortunately, we experienced our first Lost Time Injury in two years when one of our employees sustained a serious finger injury. Notwithstanding

a high-quality medical response and successful treatment, this incident reinforced our need and commitment to remain vigilant so that we can maintain safe operations and ensure the safety of our workforce.

We continue to work on gender equity and workforce diversity. In the past year we increased female representation in our workforce to 17 per cent, exceeding our gender diversity target. We welcomed Susie Corlett as a Non-Executive Director in January, achieving gender parity among the

Board's four Independent Non-Executive Directors. We have also taken strides to improving the percentage of Indigenous employees in our workforce and will be accelerating those efforts in FY22. Our progress to improve workforce diversity across all levels of the Company has been pleasing although we know that we have more work to do.

Making sure we have positive relationships with the Traditional Owners on whose lands we operate is critical to our operations. We have strengthened our commitments in this very important area with the development of our first Board-approved Reconciliation Action Plan (RAP), which has been submitted to Reconciliation Australia. Our steps over the past year have focused on establishing and maintaining meaningful, mutually beneficial and sustainable long-term relationships and implementing agreements based upon mutual trust, respect and success.

MRL prepared its inaugural Modern Slavery Statement in 2021, which communicates our commitment to identifying and preventing modern slavery across our supply chains. This past year, 93 per cent of our supply base was in Australia as a result of our focus to prioritise procurement in the communities in which we operate. This not only benefits our Company and the resilience of our supply chain but contributes to the further development of the communities in which we operate.

The Board has spent considerable time overseeing the Company's sustainability strategy, especially our response to climate change. Our business recognises the need for meaningful action to address climate change and the role MRL can play. During the year, we announced the goal to achieve net zero emissions by 2050. To help MRL achieve this, we have developed a Roadmap to Net Zero Emissions that is informed by comprehensive modelling, and which incorporates decarbonisation into our planning and decision making.

This Sustainability Report describes how MRL is positioned for the low-carbon

transition while improving our business' cost effectiveness and guaranteeing high levels of reliability for our customers.

MRL is committed to managing its environmental footprint by enhancing water stewardship and resource efficiency. This report also outlines in detail

our biodiversity management, water stewardship and enhanced framework for mine closures. These are important topics and a core element of the Company's sustainability approach.

FY21 has been an excellent year for all involved with MRL and I am proud of the progress the Company has made to improve sustainability outcomes in what has been a challenging operating environment. As we move forward, we will need to continue to manage the impacts of COVID-19 on our community and remain vigilant to ensure that we keep the virus out of our operations. I thank everyone for embracing the measures MRL put in place to keep our operations virus free, ensuring the health of our workforce and their families. It is a true testament to the 'can-do' attitude of the MRL family that we have continued and improved operational performance despite the impacts of

the virus.

Thank you to my fellow Directors for their commitment and dedication. On behalf of the Board, I also extend my sincere thanks to our Managing Director, Chris Ellison, and his leadership team for continuing to grow the business while raising the bar year- on-year on our sustainability efforts and outcomes.

Peter Wade

Non-Executive Chairman

1 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT

MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 2

MINERAL RESOURCES AT A GLANCE

3 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT

MRL AT A GLANCE: WHERE WE OPERATE

KEY

MRL IRON ORE
MRL LITHIUM		UTAH POINT
CSI MINING SERVICES
	SOUTH WEST CREEK
MRL GAS PERMITS			PORT HEDLAND
RAIL LINE	ONSLOW		WODGINA
ROAD
BUNGAROO	KUMINA
SEA PORT	SOUTH		IRON
TOM PRICE	MARILLANA
OFFICE/WORKSHOP	VALLEY
			OPHTHALMIA
MRL DEVELOPMENT PROJECT			WONMUNNA	NEWMAN
TOWN

WESTERN AUSTRALIA

GERALDTON

KOOLYANOBBING

KALGOORLIE

PERTH	RANGE
	PARKER	MT MARION
KWINANA

KEMERTON

ESPERANCE

MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 4

NORTHERN TERRITORY

SOUTH AUSTRALIA

MRL AT A GLANCE: VALUE CREATION

INPUTS

HUMAN CAPITAL:

Our employees and contractors (5,000+ as at 30 June 2021) that provide the skills, experience and knowledge required to undertake our business activities.

NATURAL CAPITAL:

The natural resources such as water, land, materials and energy required to undertake our business activities.

SOCIAL AND RELATIONSHIP CAPITAL: The relationships we have with communities, government agencies and other stakeholders, as well as our reputation and brand that are essential to our social licence to operate and the long-termsustainability of our business.

VALUE CREATION BUSINESS MODEL

LEVERAGING OFF OUR EXISTING FOOTPRINT,

INFRASTRUCTURE AND SKILL SET, WE HAVE BUILT

A STRONG AND DIVERSIFIED PORTFOLIO IN

MINING SERVICES AND MINING OPERATIONS,

PROVIDING LONG-TERM SUSTAINABLE GROWTH,

WITH 20-50 YEAR BUSINESS HORIZONS.

We achieve this by:

• Targeting stranded deposits and partnering with junior miners
• Acquiring a project stake and developing it at the lowest cost in an expedited time-frame
• Optimising the mine plan, increasing efficiency and maximising profitability

• Monetising the asset and divesting for maximum capital gain

• Retaining the life-of-mine,build-own-operate mining services contracts

FY21 OUTPUTS

TOTAL MATERIAL MOVED

131.6Mt

IRON ORE PRODUCTION

19.5Mt

SPODUMENE PRODUCTION

485kt

FY21 OUTCOMES

HUMAN CAPITAL

TRIFR	2.31
LTIFR	0.12
Employee wages and benefits paid	$479.9m
Overall female representation	16.98%
Graduates, apprentices and trainees	130
NATURAL CAPITAL
Energy consumption	4,359,773GJ
Solar energy generation	3,462GJ
Scope 1 & 2 GHG emissions	298,336tCO2e
Total material moved	131,565Mt
Rehabilitated land	1,220ha
SOCIAL AND RELATIONSHIP CAPITAL

FINANCIAL CAPITAL:

The pool of funds provided by shareholders, bondholders and banks, or generated through investments and operations that are required to undertake our business activities.

MANUFACTURED CAPITAL:

The manufactured tangible objects such as buildings, plant, equipment and infrastructure that are required to undertake our business activities.

INTELLECTUAL CAPITAL: Intangible aspects such as intellectual property, organisational knowledge, systems and processes required to undertake our business activities.

5 I MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT

LOGISTICS

RAIL, ROAD,

PORT

FACILITIES

VILLAGES, UTILITIES,

AIRPORTS

MINE

DEVELOPMENT

ER

A

TE

P

-

B

-

O

U

N

I

L

O

W

D

O

MINING SERVICES

-

D

-

W

L

MRL provides full

N

I

pit-to-port solutions,

U

-

B

with the aim to continually

O

improve efficiency and,

-

P

T

ultimately, its return

E

E

R

A

on capital.

T

A

R

E

E

P

-

O

B

-

U

I

L

NWO - D

MINING

CRUSHING,

SCREENING,

PROCESSING

MINING SERVICES VOLUME INCREASE

20%

REDUCTION IN GHG EMISSIONS INTENSITY

5%

COVID-19 SCREENINGS

84,207

RETURN ON INVESTED CAPITAL (ROIC)

38.6%

Community contributions	$5.25m
Suppliers screened for Modern Slavery	15
Payment to Federal, State and Local governments	$693m
FINANCIAL CAPITAL
Underlying net profit after tax	$1,103m
Share price	$53.73
Dividends	$2.75
MANUFACTURED CAPITAL
Capital expenditure	$745m
Mines owned/operated	5
Crushing & processing operating plants	26
INTELLECTUAL CAPITAL
NextGen 2 modular crushing plant	5Mtpa-30Mtpa
Spodumene concentrate processing	1.15Mtpa
Kemerton lithium hydroxide	50ktpa capacity

MINERAL RESOURCES LIMITED 2021 SUSTAINABILITY REPORT I 6