Black Rock Mining : 2024 Sustainability Report

About this update from Black Rock Mining Limited

ANNUAL SUSTAINABILITY REPORT For the year ended 30 June 2024 ABN: 59 094 551 336 CORPORATE DIRECTORY Directors Richard Crookes Non-Executive Chairman John de Vries Chief Executive Officer, Managing Director Ian Murray Non-Executive Director Company Secretary James Doyle Principal Place of Business and Registered Address Level 1, 1 Walker Avenue West Perth WA 6005 T: +61 (08) 6383 6200 Auditor Deloitte Touche Tohmatsu Tower 2, Brookfield Place 123 St Georges Terrace Perth WA 6000 +61 (08) 9365 7000 +61 (08) 9365 7001 Share Registry Computershare Investor Services Pty Ltd Level 17, 221 St Georges Terrace Perth WA 6000 +61 1300 787 272 +61 (08) 9323 2033 Stock Exchange Listing The Company's shares are quoted on the Australian Securities Exchange (ASX). The Home Exchange is Perth. ASX Code BKT - Ordinary Shares CONTENTS LETTER FROM THE CHAIR ABOUT BLACK ROCK MINING ENVIRONMENT SOCIAL GOVERNANCE 02 04 10 14 18 BLACK ROCK MINING SUSTAINABILITY REPORT | 2024 1 2 LETTER FROM THE CHAIR I am very pleased to provide this foreword to the first Sustainability Report produced by Black Rock Mining Limited. The purpose of a Sustainability Report is to provide stakeholders information and a concise and complete record of our ESG activities and results on an annual basis. It will explain how we approach our obligation to operate in a sustainable manner, how we identify and assess impacts, manage risk and how we aim to ensure our future performance will meet high standards of sustainability in the communities in which we operate. This particular report provides an overview of the sustainability activities of Black Rock Mining Limited and its Tanzanian subsidiary Faru Graphite Corporation (collectively the Company), for the year ended 30 June 2024. The Company is focused on operating in a responsible and sustainable manner, minimising any environmental impacts, optimising energy efficiency and using resources appropriately. The Company also recognises the importance of appropriately managing the risks which derive from mining activities to ensure a high standard of outcomes for local communities and other stakeholders. Accordingly, our goal is to ensure that our activities not only comply with current local legislation but are also aligned with external international guidelines such as the UN's Global Compact, IFC Performance Standards and the Equator Principles. This year we are particularly proud of the four Environmental and Social Impact Assessments (ESIA) we have completed for the Mahenge Graphite Project and its supporting infrastructure footprints. One key output from those studies has been a Stakeholder Engagement Plan, which will guide our future community action programs, aiming to support local stakeholders through education, healthcare and economic opportunities. These ESIA and the various reports and plans completed subsequently are substantial bodies of work and I commend all our employees and consultants for their efforts, extensive engagement and the deep commitment to our local communities in the completion of this work. As we move forward to build and operate the Mahenge Graphite Project, we remain committed to transparency and accountability in our sustainability efforts and to social value creation. We invite all our stakeholders to join us on this journey towards ensuring our legacy at Mahenge is positive and long lasting. Thank you for your continued support. Sincerely, Richard Crookes Chairman, Black Rock Mining Limited BLACK ROCK MINING SUSTAINABILITY REPORT | 2024 BLACK ROCK MINING SUSTAINABILITY REPORT | 2024 3 ABOUT BLACK ROCK MINING ABOUT BLACK ROCK MINING 4 Black Rock Mining Limited (Black Rock Mining or the Company) has an 84% interest in the world-class Mahenge Graphite Project located in Tanzania which hosts a multi-generational graphite resource and is one of the largest JORC-compliant flake graphite resources globally, with 213m tonnes @ 7.8% TGC, and a reserve of 70m tonnes @ 8.5% TGC. The Mahenge Graphite Project is spread across 324km2 of exploration tenements in Tanzania's Ulanga district, approximately 250km north of the border with Mozambique, 250km west of the coastal port city of Mtwara on the Indian Ocean and 300km southwest of Tanzania's largest city, Dar es Salaam. BLACK ROCK MINING SUSTAINABILITY REPORT | 2024 Dodoma Morogoro Zanzibar Dar es Salaem   Kidatu 204MW Iringe     Ifakara Kihansi 180MW MAHENGE   GRAPHITE   PROJECT             in             L             y             a           lw           i             a           R         a         r       a       z         a           T             e Indian Ocean Towns/Cities Hydro Plant Roads Rail 220kV Lines ABOUT BLACK ROCK MINING BLACK ROCK MINING SUSTAINABILITY REPORT | 2024 5 ABOUT BLACK ROCK MINING Mahenge Graphite Project's Competitive Advantages One of the key highlights of the enhanced DFS Update was industry analysis which highlighted Mahenge Graphite Project's first quartile position on the global costs curve - a potentially bold claim when one considers ~70% of the world's natural graphite is mined in China. While the Mahenge Graphite Project deposit is Tier 1 scale and has a very low strip ratio of 0.77 life-of-mine, its key differentiating competitive advantages are access to competitively priced hydro-dominated grid power in Tanzania and a much higher percentage of higher value per tonne large flake products than most peers. Mahenge Graphite Project is one of few graphite projects in the world expected to have both first quartile costs and very low carbon footprint graphite products due to access to low-costhydro-dominated grid power in Tanzania. While there is no premium associated with Mahenge Graphite Project's low carbon footprint graphite products yet, we are already seeing new reporting requirements being introduced in Europe for the battery supply chain which require a detailed breakdown of the carbon footprint associated with each battery component. In the short term we expect Mahenge Graphite Project's low carbon footprint products to provide enhanced market access in Europe and other western markets, but longer term we see potential for Mahenge Graphite Project's products to attract a premium or other fiscal incentives. Sustainability at Black Rock Mining Graphite is pivotal for the global shift to clean energy. Graphite's expanding role in battery anodes for electrifying transport is driving significant short- term growth, with global demand projected to double by 20301. This surge is critical for the transition to decarbonisation, requiring a joint global effort to develop new infrastructure and secure reliable sources of raw materials. Black Rock Mining is uniquely positioned with one of the world's largest graphite deposits in Tanzania, a rapidly emerging graphite belt. This strategic location enables Black Rock Mining to play a significant role in the global decarbonisation movement. As Black Rock Mining moves toward production at the Mahenge Graphite Project, the Company developed its Environmental, Social and Governance (ESG) and Sustainability Principles2. Global Critical Minerals Outlook 2024, International Energy Agency. Available at Black Rock Mining's website. Refer to Risk Management section of the Annual Report. This year, sustainability topics material to Black Rock Mining are derived from the ESG and Sustainability Principles. They include: Energy and emissions Biodiversity Local content Community Governance Risk management3 These topics represent the most important issues for Black Rock Mining at the current stage. The following sections present key initiatives undertaken to manage these topics. This Sustainability Report is for the financial year ended 30 June 2024. As this is Black Rock Mining's first Sustainability Report, there are no restatements of information or other changes in reporting. This Report should be read in conjunction with the Group's up and coming 2024 Annual Report and public announcements made during the reporting period. It has been prepared for our stakeholders, including our investors, employees, contractors, suppliers, local communities, customers and any reader interested in better understanding our Company. Women's focus group. 6 BLACK ROCK MINING SUSTAINABILITY REPORT | 2024 Environmental and Social Impact Assessment The Company completed four Environmental and Social Impact Assessments (ESIA)4 for the Mahenge Graphite Project; access roads, the electric power transmission line and the Idenke Settlement Area. These ESIA aim to evaluate and manage the potential environmental and social impacts and develop mitigation measures and management plans. Baseline studies were undertaken to understand the existing physical, biological, socio-economic and cultural conditions of the project sites. The Company prepared a Stakeholder Engagement Plan to guide stakeholder engagement activities through stakeholder identification, analysis, and mapping. A Community Grievance Redress Mechanism has also been developed, applicable to affected communities, various stakeholder groups, and individuals. Extensive engagement activities with stakeholders were conducted and key concerns, meeting minutes5 and attendance records documented and communicated through an established feedback mechanism. During the stakeholder engagement process, various impacts under following environmental and social categories were assessed: Air quality Education Unplanned events Biodiversity - Fauna Gender based violence Soil Biodiversity - Flora & habitats Hydrogeology Traffic and road infrastructure Community Hydrology Waste Community safety, security and welfare Land and livelihoods Worker's health, safety and welfare Cultural heritage Landscape and topography   Economy, employment & livelihoods Noise and vibration   Assessment for physical, social, unplanned events and cumulative impacts were conducted to evaluate the characteristics, magnitude and significance of potential impacts. This helped the development of mitigation measures which may be taken in minimising any potential adverse effects and enhance potential benefits. Based on the impact assessment, the Company developed an Environmental and Social Management and Monitoring Plan to address and mitigate the identified impacts across these categories. These measures include establishing management plans, implementing best practices for environmental protection, enhancing community engagement and support, ensuring worker safety and well-being and fostering economic and social benefits. Government Engagement Black Rock Mining recognises that proactive and transparent engagement with government entities is critical to achieving our sustainability goals. The Company's interactions with the Government of Tanzania and government authorities help align stakeholder expectations and move forward to deliver a new clean source of high-grade graphite to a growing global market. Key government engagements are highlighted below. In December 2021, Black Rock Mining signed a Framework Agreement with the Government of Tanzania. Under the Agreement, the following key structure has been agreed: Undiluted free-carried interest shareholding owned by the Government of Tanzania; Granting of Special Mining Licence (subsequently issued in September 2022); and Existing approved Environmental Permits and Resettlement Action Plans granted. President of Tanzania, Her Excellency Samia Suluhu Hassan attended the signing of a Framework Agreement with Black Rock Mining at a ceremony held in Dar es Salaam on 13 December 2021. BLACK ROCK MINING The regulatory framework that applies to the ESIA comprises Tanzania national legislation, company-specific policies, as well as international standards and guidelines. The Tanzania national administrative and regulatory requirements include but not limited to: Constitution of the United Republic of Tanzania; Relevant National Policies and Strategies; Relevant Acts and Regulations; National Administrative Framework; and Environmental Standards. The International Standards and Guidelines include: Equator Principles 4; International Finance Corporation Performance Standards; World Bank Group Environmental Health and Safety (EHS) Guidelines; Industry Specific World Bank Group EHS Guidelines for Water and Sanitation; Waste Management Facilities; and Health Care Facilities and UN Guiding Principles on Business and Human Rights. Stakeholders include National Environment Management Council; regional authorities; district authorities; ward / village authorities; other government agencies; project affected communities and individuals; non-governmental organisations; civil society organisations; and media. BLACK ROCK MINING SUSTAINABILITY REPORT | 2024 ABOUT 7 Government Engagement (continued) In November 2022, Black Rock Mining's joint venture subsidiary Faru Graphite Corporation Limited (Faru), signed a memorandum of understanding with Tanzania Electric Supply Company Limited (TANESCO) to develop a transmission line between Ifakara and Mahenge. On 22 March 2023, a Memorandum of Understanding (MoU) was signed between Faru and Tanzania-Zambia Railway Authority (TAZARA) for the collaboration in establishing a business relationship for a logistics solution to transport graphite from Ifakara to Dar es Salaam. Left to right: Chief Commercial Officer - Greg Wheeler, General Manager Corporate & Government Relations - Alimiya Osman, Managing Director of TAZARA - Mr Bruno Chin'gandu and other TAZARA officials. ABOUT BLACK ROCK MINING Left to right: Chief People & Sustainability Officer - Rae Wyatt and Edward Ezekiel - Country Manager RSK Environment (East Africa) with Ulanga District Commissioner - Dr Julius Ningu. In July 2023, the Company disclosed and presented to the Ulanga District the Mahenge Graphite Project Supplementary ESIA approved by the National Environment Management Council (NEMC). The update of the 2018 ESIA was undertaken to achieve compliance with the International Finance Corporation Performance Standards (IFC PS) and the current Equator Principles (EP4). Left to right: Ulanga District Commissioner - Dr Julius Ningu with Managing Director & CEO - John de Vries and General Manager Corporate & Government Relations - Alimiya Osman. In May 2024, Black Rock Mining signed a MoU with Ulanga District Council and Mdindo Village Council to develop the Idenke Settlement Area. 8 BLACK ROCK MINING SUSTAINABILITY REPORT | 2024

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