Environment

Our progressive rehabilitation involves a patchwork of alternative land uses, pre-agreed with local authorities, including agricultural land, forestry, savannah and woodlands. We include the cost of rehabilitation in our cash operating costs as we see rehabilitating mined lands and returning them to our host communities as an intrinsic part of our mining process.

Although the Moma Mine has over 100 years of Mineral Resources, we set aside funds to cover closure costs, as required by law. Closure considerations form part of our ongoing planning, operational and engagement activities. Closure plans and associated costs are reviewed and updated annually. In 2021, we rehabilitated 198 ha of land, close to our target of 200 ha. This included the planting of indigenous trees, which supports biodiversity restoration and 22 ha of 52,000 casuarina trees - a future commercial forestry crop.

The great majority of the waste tailings material comprises sand, silt and clay particles removed from the ore in the WCP. These can be sub-divided into sand tailings (>0.045 mm) and slimes (<0.045 mm), which are collected in a series of hoppers at the back of the WCP. Disposal of sand sized particles is straightforward, these being pumped to the rear of the pond and deposited by means of cyclones which are located on top of a mobile stacker.

Disposal of slimes material is more complex, given the propensity for this size fraction to remain in suspension for longer periods. A significant proportion of the slimes fraction is incorporated between sand grains in the sand tailings and needs no further management. Excess slimes in the tails are allowed to consolidate in settling ponds, and are then pumped as thick slurry to drying cells. Over the following months, the water evaporates from the slurry, leaving low moisture clay that can be easily moved and handled. This material will be placed into the subsoil during rehabilitation of the dredge path, providing benefits for the subsequent revegetation.

Kenmare’s water stewardship strategy continues to focus on five key areas of activity:

• Watershed management – to secure water supply for current and future operations while protecting and enhancing other water uses. This is implemented through a site wide water balance, environmental monitoring and surface groundwater modelling to measure the current and projected operational water demand and to characterise the surface water and ground water systems

• Impact mitigation – to mitigate environmental and social impacts associated with the extraction, use and discharge of water and to enhance water use opportunities

• Operational performance – the site wide water balance is used to manage water as an asset, through improved performance and compliance with all commitments

• External engagement – to collaborate and engage externally on water policy, management, and challenges in Mozambique to create shared value.

• Internal collaboration – to ensure coordination across all water management areas of the business.

In 2021, Kenmare used 16.8 mega litres (ML) of water and our efficiency rate was 0.41 m3 water per tonne of excavated ore, a 28% improved efficiency compared to 2020 (0.57). Water abstraction for our Namalope and Pilivili operations was in line with our regulatory water withdrawal limits in 2021. Training regarding water abstraction was provided to operational staff during the year to assist with understanding and ensure compliance with the requirements of the Company’s EMP.

Sewage treatment plants have been provided for the MSP, WCPs and accommodation village. The treatment plants each comprise a collector tank and pumping station, aerobic treatment unit, agitated aeration tank and sludge disposal to a sludge digestion pond.

A solid waste disposal facility has been installed, including a lined area for non-inert material.

Hazardous waste is disposed at an approved hazardous waste disposal site.

Total energy consumption in 2021 from all sources of energy including diesel consumption for heavy mobile equipment, transshipment vessels and light vehicles; grid energy from Electricidade de Moçambique (EdM); Dublin office energy; petrol and LPG was 451,489 MWh.

Kenmare continues to source most of its electricity from hydropower and supplements this with electricity from

diesel powered generators. Total electricity used during 2021 was 223,188 MWh (2020: 206,900 MWh), of which

over 90% was renewable energy supplied by EdM provided directly by the Hidroeléctrica de Cahora Bassa (HCB) dam. The increase in energy use in 2021 can be attributed to higher levels of production relative to 2020.

Kenmare undertakes a number of environmental compliance programmes to manage and reduce our impact on the environment and our host communities.

This inlclude an air quality monitoring programme designed for the MSP which records ambient meteorological conditions, as well as the primary anticipated pollutants (inhalable particulates, total particulate matter, CO, CO2, NO and SO2). Dust monitoring of all areas were within the specified standards. All the bag-houses at the MSP are operational and no out of standard readings were recorded.

Kenmare undertakes a number of environmental compliance programmes to manage and reduce our impact on the environment and our host communities.

Noise monitoring equipment is used on site to ensure that ambient noise levels do not exceed the World Bank noise standards. Workplace noise levels are also monitored and managed according to site’s Operational Environmental Management Plan.

Environmental noise monitoring in 2020 returned results that were generally in line with accepted levels. Day time noise levels in excess of the IFC 1-hour guideline of 55dBA were measured in Mtiticoma, Tibane and Topuito, but these were attributable to noise from community sources (such as motor vehicles, motor cycle movement, work activities such as hammering, and music from social gatherings), and not mining activities.

Night time environmental noise levels in excess of the IFC 1-hour guideline of 45dBA were recorded in Topuito, where the noise levels were a combined result of Heavy Mobile Equipment use at the Mineral Separation Plant and community noise (loud music and motor vehicle movement), with community noise as the predominant contributor. This measurement was obtained during one external survey. Environmental noise monitoring efforts will be increased in 2021 to ensure we obtain a more representative picture and to determine whether additional operational controls need to be considered.

The mineral sands mined by Kenmare and our products contain naturally occurring radionuclides. A radiation management plan is in place and occupational exposures remain well within legal exposure limits.

The first two shipments of mineral sands concentrate, which contains monazite, were despatched from Moma in 2019. Due to the monazite content, regulatory and radiation control requirements have been implemented and radiation management remains compliant to national legislation, the International Commission on Radiation Protection (ICRP) and IFC Performance Standards (2012).