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| Published on February 25, 2025 | |||||||||||||||||
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Lithium Ionic is committed to the acquisition, exploration, and development of lithium properties in Brazil, aiming to create sustainable long-term value for its shareholders through the discovery and potential extraction of lithium—a critical mineral that drives the green revolution. The Company, along with its wholly-owned subsidiaries MGLIT Empreendimentos Ltda., Neolit Minerals Participações Ltda., Salit Mineração Ltda, is focused on advancing its flagship projects, Itinga and Salinas, located in the lithium-rich Minas Gerais state. Together, these properties encompass ~17,000- hectares within this mining-friendly province. The Itinga Project, which includes both the Bandeira and Outro Lado sites, is strategically positioned in proximity to Sigma Lithium Corp.'s Grota do Cirilo project, the largest lithium hard-rock deposit in the Americas, which commenced production in April 2023. Additionally, it is near CBL's Cachoeira mine, a lithium producer since 1991. In May 2024, a Feasibility Study on the Bandeira lithium deposit demonstrated a 14-year, low-cost mining operation. Located approximately 100 kilometers north of the Itinga Project, the Salinas Project is currently progressing with its drilling program, and an NI 43-101 Mineral Resource Estimate (MRE) is anticipated in the near term. Minas Gerais state is distinguished by its robust infrastructure, featuring access to highways, a hydroelectric power grid, water resources, and nearby commercial ports, which facilitate efficient operations. Lithium Ionic began trading on the TSX Venture Exchange in May 2022 under the ticker symbol LTH. The Company is also listed on the OTCQX in the United States as LTHCF and in Germany under the symbol H3N. |
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| Disclaimer and Forward Looking Statements | |||||||||||||||||
| Company Profile | |||||||||||||||||
| Organizational Profile | |||||||||||||||||
| Name | Lithium Ionic Corp. | ||||||||||||||||
| Describe nature of activities, brands, products and services |
Lithium Ionic is a Canadian junior mining company exploring and developing lithium projects in Brazil. The Company and its its wholly-owned subsidiaries MGLIT Empreendimentos Ltda., Neolit Minerals Participações Ltda., Salit Mineração Ltda are currently focused on advancing its flagship Itinga Project, encompassing the Bandeira and Outro Lado sites, as well as the Salinas project, situated approximately 100 km north of the Itinga site. The region is known for its lithium reserves, which drive Lithium Ionic’s goal of generating value for its shareholders through the discovery and potential future extraction of lithium. |
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Driving Lithium Ionic’s success are the following principles: safety, integrity, responsibility, accountability, and excellence. Lithium Ionic has the potential to create long-term positive impacts by supporting local communities and contributing to the global transition to net-zero emissions through the production and distribution of commercial-grade lithium. |
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| Link to Corporate Website | https://www.lithiumionic.com/ | ||||||||||||||||
| Industry Classification |
NAICS: 21 Mining, quarrying, and oil and gas extraction 212299 All other metal ore mining ISIC: B0729 Mining of other non-ferrous metal ores |
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| Market Capitalization | $100 Million up to $1 Billion USD | ||||||||||||||||
| Type of Operations | Lithium exploration and development | ||||||||||||||||
| Company Headquarters | Toronto, Canada | ||||||||||||||||
| ESG Accountability | |||||||||||||||||
| Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance |
Katrina Diez, Manager, Environmental and Sustainable Governance |
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| GRI Reporting Requirements | |||||||||||||||||
| Choose the statement as to how the organization has aligned their reporting utilizing GRI Standards |
The organization has reported in accordance with the GRI Standards for the period defined below |
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| ESG Reporting Period | |||||||||||||||||
| Unless otherwise noted, all data contained in this report covers the following period | |||||||||||||||||
| From | 2024-01-01 | ||||||||||||||||
| To | 2024-12-31 | ||||||||||||||||
| External Assurance | |||||||||||||||||
| Describe your company's policy and practice for seeking external assurance, including whether and how the highest governance body and senior executives are involved | The information provided is self declared. | ||||||||||||||||
| Has the report been externally assured | No | ||||||||||||||||
| Financial Reporting Period | |||||||||||||||||
| Does the financial reporting period align with the sustainability reporting period (eg. calendar vs fiscal) | Yes | ||||||||||||||||
| Geographic Scope of Report | |||||||||||||||||
| Unless otherwise noted, the data in this report covers sustainability matters related to the following locations of operations | Brazil | ||||||||||||||||
| Identify notable exclusions of the geographical and/or business scope of the report, and reference of any existing or planned reports that do or will address these (e.g., assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.) | None | ||||||||||||||||
| Reporting Practice | |||||||||||||||||
| Provide the full contact details (name, title, address, email and/or phone number) for an individual responsible to address questions regarding the report or its contents |
Katrina Diez ESG Manager 36 Lombard Street, Floor 4 Toronto, ON, Canada, M5C 2X3 kdiez@lithiumionic.com |
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| Currency | |||||||||||||||||
| Unless otherwise noted, all financial figures referenced in this report are in the following currency | CAD | ||||||||||||||||
| Membership of Associations | |||||||||||||||||
| List of the industry associations, other membership associations, and national or international advocacy organizations in which the organisation participates in a significant role, as well as any economic, environmental, and social charters, principles, or other programmes that the organisation subscribes to or supports, such as the United Nations Global Compact (UNGC), etc. |
In 2023, Lithium Ionic took a significant step toward aligning its operations with industry best practices by initiating the IRMA Mine Measure self-assessment for its Bandeira project. Building on this effort, the company joined the IRMA Mine Group for Self-Assessing Mines in 2024, fostering collaboration with industry peers on their shared IRMA journeys. In Q4 2024, Lithium Ionic further demonstrated its commitment to global sustainability by becoming a signatory of the UN Global Compact, aligning its operations with internationally recognized principles. The company also joined the International Lithium Association, emphasizing its dedication to responsible lithium development. Additionally, Lithium Ionic became a member of Women in Mining Brazil, highlighting its efforts to promote diversity and inclusion within the mining sector |
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| Scale of the Organization | |||||||||||||||||
| Describe how the organization defines its "Operation" |
Lithium Ionic is a near-term producer of high- quality, low-cost lithium concentrate in Brazil’s ‘Lithium Valley’, a region of global significance for hard-rock lithium production. Our claims span ~17,000 hectares in northeastern Minas Gerais State, a mining-friendly jurisdiction where +300 mines operate. The Itinga Project includes both the Bandeira and Outro Lado sites. The Bandeira project is expecting its installation and operating licenses in early Q1 2025, with construction to commence soon after. Additionally, the Salinas site recently completed its NI 43-101 Mineral Resource Estimate (MRE) for the Baixa Grande deposit. |
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| Report the total number of operations | 1 | ||||||||||||||||
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This report consolidates information from both our Itinga (Bandeira and Outro Lado sites) and Salinas projects, located within 100km of each other. The Itinga project is currently further advanced in its development compared to the Salinas project. Consequently, our primary focus within our ESG programming is directed towards the Bandeira site, which will be entering the construction phase in 2025. In contrast, the Salinas site is in the early stages of exploration and development, with a NI 43-101 Mineral Resource Estimate (MRE) for the Baixa Grande deposit published in Q2 2024. Development efforts at the Salinas site will be geared towards matching the ESG standards set by the Bandeira project while also tailoring programming to accommodate the unique characteristics of the Salinas site. |
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| Report the quantity of products or services provided during the reporting period and provide description (e.g. number of units produced, amount of primary commodity produced, number of services provided, etc.) |
0 Lithium Ionic is currently in the exploration and development phase for its project, with production not yet underway. The company is diligently advancing activities in preparation for future production phases. |
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| Fragile and Conflict-Affected Situations | |||||||||||||||||
| Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations" | None | ||||||||||||||||
| Mineral Resource Types in Scope | |||||||||||||||||
| Which of the following mineral resource types are covered by this report |
• Indicated • Inferred • Measured |
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| Mineral Reserve Types in Scope | |||||||||||||||||
| Which of the following mineral reserve types are covered by this report |
• Proven • Probable |
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Proven and Probable Reserves are available in our Feasibility Study for the Bandeira Project |
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| Strategy | |||||||||||||||||
| Link to company's statements of: Purpose, Vision, Mission and Values; Sustainability/ESG strategy (URL) |
https://www.lithiumionic. com/sustainability/overview/ |
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| Provide a statement from the highest governance body or most senior executive of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainable development to the organization and its strategy for contributing to sustainable development. (CEO's message for this report) |
Please see the attached statement from our CEO. |
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| Lithium Ionic 2024 CEO Message | |||||||||||||||||
| Material Topics | |||||||||||||||||
| Governance of Material Topics | |||||||||||||||||
| Describe the process followed to determine the organization's material topics |
Expanding upon the outcomes of our 2023 Internal Materiality Assessment, in 2024, we broadened our scope to encompass insights from both internal and external stakeholders. Leveraging insights from the Environmental Control Report and baseline studies, we also incorporated the GRI Standards for the Mining Sector to determine the material topics to be included in our materiality questionnaire. The assessment mirrored the format of our previous evaluation, with material topics translated into a questionnaire where respondents ranked each topic from 1 to 10 based on its importance to them. To ensure clarity, we included a definition sheet to help respondents understand the material and provide accurate feedback. Subsequently, we sent out a questionnaire to all internal and external stakeholders and based on the findings, we discerned the topics deemed most significant by our employees and all external stakeholders. For further details, please refer to the attached materiality matrix. In addition, we have included additional material topics outlined within ONYEN that are relevant to our project. Although some of these topics were not explicitly outlined in our materiality assessment, they are in fact relevant and therefore should be acknowledged as such. |
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| How did the organization identify the material topics |
• Materiality Assessment • Environmental impact assessment • Social impact assessment |
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| 2024 Materiality Matrix | |||||||||||||||||
| How did the organization prioritize the impacts based on their significance |
Based on the results of the materiality assessment, we identified the topics considered most important to our stakeholders. We ranked these topics by their significance, comparing them to the findings of our 2023 internal materiality assessment. Additionally, we reviewed our Environmental Control Report for the Bandeira site and cross-referenced the key topics highlighted in that assessment. By analyzing these material indicators, we were able to pinpoint the overarching topics that are most relevant to both our company and the project. |
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| Specify the stakeholders and experts whose views have informed the process of determining its material topics and provide details |
• Business partners • Employees and other workers • Local communities • Non-governmental organizations • Governments • Civil society organizations |
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| List the organization's material topics |
• Economic Performance • Market Presence • Indirect Economic Impacts • Procurement Practices • Energy • Water • Biodiversity • Emissions • Effluents and Waste • Compliance • Transport • Overall environmental • Environmental Assessment • Environmental Grievances • Employment • Labor/Management Relations • Occupational Health and Safety • Training and Education • Diversity and Equal Opportunity • Equal Remuneration for Women and Men • Labor Practices • Grievance Mechanisms • Human Rights Investment • Non-discrimination • Freedom of Association and Collective Bargaining • Child Labor • Forced or Compulsory Labor • Security Practices • Human Rights Grievance Mechanisms • Local Communities • Anti-corruption • Public Policy • Anti-competitive Behavior • Grievance Mechanisms for Impacts on Society • Emergency Preparedness • Closure Planning • Marketing • Communications • Permitting • Materials • Climate Change, Adaptation and Resilience • Air Emissions & Pollution • Greenhouse Gas Emissions • Water and Effluents • Waste • Materials Management • Closure or Decommissioning • Nature Loss • Natural Ecosystem Conversion • Soil Health • Integration of Environmental Considerations • Environmental Compliance • Diversity, Equal Opportunity & Inclusion • Workforce Engagement • Non-Discrimination • Labour Relations • Animal Health and Welfare • Health and Well-Being • Local Hiring Practices • Workforce Health and Safety • Child Labour • Forced or Compulsory Labour • Human Rights and Rights of Indigenous People • Living Income and Living Wage • Land and Resource Rights • Community Health, Safety, and Security • Procurement Systems • Marketing and Labelling • Business Ethics • Security • Supply Chain Impacts • Anti-Corruption • Anti-Competitive Behaviour • Tax • Legal & Regulatory Environment • Financial Inclusion & Capacity Building • Managing Systemic Risks • Carbon Offset • Freshwater |
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| List the organization's non-material topics |
• Products and Services • Supplier • Supplier Assessment for Labor Practices • Supplier Human Rights Assessment • Indigenous Rights • Supplier Assessment for Impacts on Society • Artisanal and Small-scale mining • Resettlement • Customer Health and Safety • Product and Service Labeling • Customer Privacy • Materials Stewardship • Pesticides Use • Sourcing & Environmental Impacts of Feedstock Production • Food Security • Food Safety • Transparent Information & Fair Advice for Customers • Innovation of Better Products and Services • Land Acquisition and Involuntary Resettlement • Supply Chain Traceability • Product Safety • Incorporation of ESG Factors in Investment Management & Advisory • Incorporation of ESG Factors in Credit Analysis • Data Privacy & Freedom of Expression • Data Security |
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| Provide reasons for considering such topics not material, provide details | Not applicable | ||||||||||||||||
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Lithium Ionic is currently in the exploration stage, and therefore, some of the listed material topics are either not applicable or not yet relevant to our current operations. |
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| Report changes to the list of material topics compared to the previous reporting period |
We've chosen to recognize Child Labour and Forced Labour as material topics, as they are explicitly addressed and prohibited in our ESG Policy. They were also identified as part of other significant topics in our materiality assessment. Although they are not currently areas of concern within our operations, it is imperative to proactively identify and address them early on, particularly considering their inclusion in our forthcoming annual reporting to the Government of Canada through the Forced Labour in Canadian Supply Chains Act once we enter construction/production. |
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| For the top 5 material topics, the reporting organization shall report the following information: | |||||||||||||||||
| Topic #1 | Environmental Compliance | ||||||||||||||||
| An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights |
Adhering to environmental regulations is essential for minimizing ecological harm, safeguarding biodiversity, and prioritizing the health and safety of local communities. It also strengthens the long-term sustainability of mining operations by preventing legal repercussions and fostering positive stakeholder relationships. Environmental compliance is a cornerstone of sustainable lithium mining. Non-compliance can lead to environmental degradation and damage to the company's reputation. In contrast, strict adherence to regulations fosters environmental stewardship and responsible resource management, laying the foundation for the mine's sustainable growth and long- term success. |
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| How is the topic connected to the entity's strategy and financial performance |
Environmental Compliance is an area of our business strategy that is outlined in our ESG Policy. More specifically, within the ESG policy we make the following commitments • Ensure diligent adherence to relevant laws, regulations and policies relating to environmental matters. • Continuously monitor, assess, and improve our environmental performance to ensure compliance with all environmental regulations. • Provide regular updates to the Board of Directors on sustainability materials that may impact the Company's operations and results. |
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| Where the impacts occur |
The impacts of environmental compliance are most directly felt at the mine site in Minas Gerais, including surrounding ecosystems and local communities. Downstream effects can also extend to areas affected by the transportation of materials and byproducts, as well as the broader supply chain. |
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| The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships |
Through operational activities, there is a risk that negative environmental impacts could occur if compliance is not maintained. However, by adopting best practices Lithium Ionic has the opportunity to mitigate these risks and highlight its commitment to operational best practices. |
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| Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships | Both activities and business relationships | ||||||||||||||||
| Describe/provide a link to the corporate policies or commitments regarding the topic |
Our commitments to regulatory/environmental compliance can be found in our ESG policy. |
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| ESG Policy | |||||||||||||||||
| Explain how the organization manages the topic and actions to prevent or mitigate potential negative impacts |
To manage environmental compliance effectively, the organization implements comprehensive programs for employees and contractors on environmental standards and necessary actions. Within each of the programs outlined in the Environmental Control Plan, there is a set of objectives and monitoring actions that will be taken for each focus area which include preventive measures and routine monitoring to ensure compliance. |
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| Describe actions to address actual negative impacts, including actions to provide for or cooperate in their remediation |
Lithium Ionic is committed to addressing any environmental impacts promptly and responsibly. In the event of unforeseen impacts, we pledge to take immediate corrective actions. For example, in 2024, we received a fine related to vegetation suppression permits. We view this as an opportunity to strengthen our practices and processes, ensuring strict adherence to regulatory standards and preventing future occurrences. |
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| Describe actions to manage actual and potential positive impacts |
Lithium Ionic adopts a proactive approach to managing actual and potential positive impacts related to environmental compliance, emphasizing strict adherence to regulations and a commitment to environmental stewardship. By prioritizing compliance and sustainable practices, the company strengthens its reputation as a responsible and trustworthy partner. This approach fosters stronger relationships with local communities, where transparency and environmental consciousness build trust and mutual respect. Combined with a robust suite of environmental management programs, this commitment ensures that proper monitoring and management of resources remain a core priority throughout our operations. |
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| Report the processes used to track the effectiveness of the actions; |
• Impact assessments • Stakeholder feedback • Measurement systems |
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| Report the goals, targets, and indicators used to evaluate progress; |
The effectiveness of environmental compliance efforts is measured using a dedicated indicator that monitors fines and infringements on an annual basis, ensuring accountability and continuous improvement. |
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| Report the effectiveness of the actions, including progress toward the goals and targets; any related adjustments |
We received an infraction resulting in a monetary penalty due to inadequate licensing for vegetation suppression at our drill sites. We recognize this incident as a valuable learning opportunity. We are committed to reinforcing compliance measures across our operations to prevent similar occurrences in the future. |
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| Lessons learned and how these have been incorporated into the organization’s operational policies and procedures |
We have been closely monitoring all relevant environmental regulations and making adjustments where necessary. If there are to be any future issues regarding this material topic, we will evaluate the actions required and incorporate the lessons learned to our ESG policy. |
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| Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective |
Engaging with stakeholders—such as local communities, regulatory agencies, and environmental organizations—is a key component of the organization’s environmental compliance strategy. To support this, the third- party community consultancy, Intergratio, facilitates meetings and consultations with communities near the Bandeira site. Additionally, they have implemented feedback mechanisms to ensure stakeholder concerns are effectively addressed. |
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| Topic #2 | Labor Practices | ||||||||||||||||
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Fair Labour Practices: Adhering strictly to labour laws and regulations, ensuring fair wages are provided to all employees and committing to ethical work conditions, including zero tolerance for forced labour and child labour. |
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| An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights |
Our project emphasizes fair labour practices to safeguard the well-being and rights of workers. Positive impacts of our operations include creating local employment opportunities, fostering skills development, and contributing to economic growth in the region. However, if labour practices are not managed properly, there is a risk of negative impacts, such as labour disputes and health and safety concerns, which we strive to mitigate through proactive measures. |
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| How is the topic connected to the entity's strategy and financial performance |
Fair Labour Practices is an area of our business strategy that is outlined in our ESG Policy and guides actions. More specifically, within the ESG policy we make the following commitments Employee Dynamics & Continual Educational Training • Maintain appropriate organizational power balances to ensure equitable treatment and recognition for all employees. • Enforce a zero-tolerance policy towards internal conflicts and discriminatory practices to uphold a respectful and harmonious workforce. • Recognize and promote employees based on their skills and contributions while providing comprehensive training and pathways for career advancement. • Maintain and continue improving employee development initiatives through training, mentoring and specific training programs. Employee Rights and Freedoms • Respect employees’ freedom of association and their right to participate in collective bargaining. • Establish a confidential reporting system for unethical or illegal conduct and safeguard the confidentiality of employees' personal information. Diversity, Equity and Inclusion • Embrace diversity and provide equal opportunity for all employees and contractors without bias or prejudice. • Advance gender equality by integrating gender considerations and supporting initiatives to increase women's representation in the mining industry. • Identify barriers to inclusion and implement measures to increase equity in the workplace. • Value and encourage diversity and inclusion, establishing goals, initiatives and actions that support Minority Groups (women, POCs, professionals with disabilities and LGBTQIA+) in leadership positions and within our workforce. These commitments are further strengthened through the Diversity and Inclusion Policy and Human Right Policy. |
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| Where the impacts occur |
The impacts of fair labour practices primarily occur at the Lithium Ionic mine site and administrative offices and extend to the local communities, supply chains, and related business operations. |
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| The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships |
The organization actively promotes positive impacts by implementing fair labour practices, providing fair wages, and ensuring safe working conditions. While there is potential for indirect impacts through supply chain or subcontractor labour management, and possible direct impacts from construction and operations not aligning with labour standards, no such instances have occurred. The organization remains committed to proactive measures that minimize these risks. |
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| Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships | Both activities and business relationships | ||||||||||||||||
| Describe/provide a link to the corporate policies or commitments regarding the topic |
Policy commitments regarding this topic are outlined in our ESG report, Human Rights Policy, and Diversity and Inclusion Policy. |
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ESG Policy Human Rights Policy Diversity and Inclusion Policy |
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| Explain how the organization manages the topic and actions to prevent or mitigate potential negative impacts |
To address this topic and mitigate potential negative impacts, the organization has implemented an ESG Policy, a Human Rights Policy, and a Diversity and Inclusion Policy, all of which reinforce our commitment to fair labour practices and worker rights. Workplace safety is overseen by an operational safety technician dedicated to maintaining safe working conditions. Preventive measures, such as the Daily Safety Dialogue, provide workers with a platform to raise concerns, enabling continuous improvement of workplace safety standards. |
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| Describe actions to address actual negative impacts, including actions to provide for or cooperate in their remediation |
In the case of negative impacts, Lithium Ionic is prepared to take corrective actions and remediate any instances of labour violations or grievances. However, the need for corrective actions has not been required. |
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| Describe actions to manage actual and potential positive impacts |
To enhance positive impacts, Lithium Ionic supports and facilitates educational and community-building initiatives through workshops, such as the 'Green April Campaign,' which highlights the importance of health and safety, and 'International Women’s Day,' celebrating the vital contributions of our female workforce. Additionally, our policies reflecting these commitments are regularly reviewed to ensure alignment with our goals and evolving expectations. |
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| Report the processes used to track the effectiveness of the actions; |
• Measurement systems • Stakeholder feedback |
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| Report the goals, targets, and indicators used to evaluate progress; |
Lithium Ionic tracks workplace incidents, working hours, and key employee metrics to stay informed about the evolving dynamics of our workforce. In addition, we will continuously evaluate and update our policies to adapt to operational changes and ensure alignment with evolving industry best practices. |
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| Report the effectiveness of the actions, including progress toward the goals and targets; any related adjustments |
Lithium Ionic tracks key employee metrics that provide insights into whether we are achieving our targets and help us make adjustments based on performance data. The effectiveness of implemented measures is continuously assessed, with strategies and policies refined as needed. To date, we have received no labour complaints, demonstrating the effectiveness of our current actions. |
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| Lessons learned and how these have been incorporated into the organization’s operational policies and procedures |
We have been closely monitoring all relevant labour legislation and making adjustments where necessary. If there are to be any future issues regarding this material topic, we will evaluate the actions required and incorporate the lessons learned to our ESG policy, Diversity and Inclusion Policy, and Human Rights Policy. |
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| Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective |
Engagement with employees is conducted through our Daily Safety Dialogue. Through this channel we can properly address any concerns or feedback, which ultimately improves working conditions and safety measures. |
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| Topic #3 | Workforce Health and Safety | ||||||||||||||||
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Occupational Health and Safety: Providing comprehensive safety training, prioritizing employee well-being, implementing rigorous hazard protocols, and ensuring transportation safety to protect employees. |
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| An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights |
Occupational health and safety is a fundamental pillar of our project, ensuring a healthier workforce while fostering a safer and more productive work environment. Given the inherent risks associated with mining operations, strict safety measures are essential to prevent incidents and ensure long-term success. Through the implementation of robust protocols, including the use of personal protective equipment (PPE) and comprehensive safety training, we demonstrate our commitment to worker well-being and adopt a proactive approach to risk mitigation. |
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| How is the topic connected to the entity's strategy and financial performance |
Worker Health & Safety is an area of our business strategy that is outlined in our ESG Policy and guides actions. More specifically, within the ESG policy we make the following commitments Safe Work Environment • Prioritize workers' health and safety as paramount, placing their well-being above financial gains. • Manage operations to proactively prevent injuries and fatalities, aiming for continuous improvement toward the goal of zero harm. • Allocate the necessary resources to maintain a safe and healthy work environment. • Continuously improve health and safety protocols through periodic reviews and improvement initiatives. • Adhere to local and international regulations, laws and guidelines relating to occupational health and safety. • Prioritize employees' physical and mental well-being, ensuring safe working conditions and fostering a culture of health and well- being for all. Emergency Response, Dangers, and Risks • Maintain a safe, secure, and healthy work environment by consistently identifying and mitigating hazards and risks. • Conduct comprehensive reviews of health and safety issues and incidents and address safety risks through ongoing training and dialogue. • If unsafe working conditions are discovered, workers have the right to immediately leave affected areas and only re-enter when equipped with appropriate PPE. • Develop and implement robust emergency preparedness plans and procedures tailored to our operations' risks and challenges. • Ensure the availability of adequate emergency response resources and conduct regular exercises and training sessions to ensure adequate response times. Security Practices • Committed to implementing robust security practices to ensure the safety and security of our employees, assets, and operations. • Adhere to established security protocols and procedures to safeguard our organization. |
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| Where the impacts occur |
The impacts of occupational health and safety will be prevalent throughout the entire project, encompassing various stages from the implementation phase to daily operational activities. These impacts will affect direct employees, contractors, and third-party workers who are employed throughout all levels of our operations. Safety measures will also extend to the project's transportation and accommodation arrangements, emphasizing the broad scope of occupational health and safety considerations. |
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| The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships |
Occupational health and safety is integral to managing project activities, with the company’s decisions directly affecting workforce well- being and safety. The organization is responsible for ensuring compliance with regulatory standards and effectively implementing safety campaigns. This includes a commitment to providing accessible personal protective equipment (PPE) and comprehensive training to all employees. |
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| Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships | Both activities and business relationships | ||||||||||||||||
| Describe/provide a link to the corporate policies or commitments regarding the topic |
Our ESG Policy includes our commitments regarding occupational health and safety. |
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| ESG Policy | |||||||||||||||||
| Explain how the organization manages the topic and actions to prevent or mitigate potential negative impacts |
The organization will actively manage occupational health and safety through a comprehensive set of measures. These will include the mandatory use of PPE, regular medical examinations for all workers, risk signposting in the mine, and periodic checks on equipment. In addition, a risk analysis was conducted by IMEST to identify potential causes of accidents and determine measures to eliminate or mitigate those risks. The findings of this assessments were then used to support specific safety programs, such as the Risk Management Program and Medical Control and Occupational Health Program, which will be implemented during the production phases, further demonstrating a proactive approach to preventing and mitigating potential negative impacts. |
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| Describe actions to address actual negative impacts, including actions to provide for or cooperate in their remediation |
Our approach to managing potential negative impacts prioritizes prevention, with a strong focus on safeguarding the well-being and safety of our workforce. We are committed to continuous improvement, and in the rare event of an accident, we take a proactive stance by thoroughly tracking and analyzing each incident. This analysis enables us to address root causes effectively and implement targeted measures to prevent similar occurrences in the future. |
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| Describe actions to manage actual and potential positive impacts |
To manage and amplify positive impacts, the organization is committed to implementing targeted programs as it transitions towards construction and production phases. In terms of worker well-being, the provision of PPE ensures employees are not only adequately equipped but also thoroughly trained in its proper use. Regular training sessions and educational workshops further support employee safety and awareness. Notable initiatives include our 'Green April' safety campaign and a recent visit from local police to educate employees on self-defense and holiday safety measures. As the project progresses, programs such as the Medical Control and Occupational Health Program and the Risk Management and Accident Prevention Program will establish clear priorities and targets, ensuring effective evaluation and implementation of control measures. |
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| Report the processes used to track the effectiveness of the actions; |
• Benchmarking • Stakeholder feedback |
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| Report the goals, targets, and indicators used to evaluate progress; |
The organization's goals will include tracking and preventing accidents through safety campaigns and training. Indicators for progress evaluation will encompass number of occupational accidents, as well as total training hours provided. |
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| Report the effectiveness of the actions, including progress toward the goals and targets; any related adjustments |
We currently maintain detailed records of on- site incidents, carefully tracking them to identify recurring patterns that may require additional focus. As the project advances, we plan to implement phased health and safety programs, supported by continuous assessments and monitoring to ensure their effectiveness. |
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| Lessons learned and how these have been incorporated into the organization’s operational policies and procedures |
All occupational accidents are documented, including the nature of each occurrence. For instance, our tracking identified vehicular accidents as a key focus area. In response, we implemented defensive driving training to reduce the likelihood of such incidents. This training equips employees with the skills needed to prevent similar occurrences and promotes a safer work environment. |
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| Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective |
Stakeholder engagement plays a crucial role in guiding the organization's actions, with feedback from workers and the community driving the continuous improvement of safety measures. The Daily Safety Dialogue highlights our commitment to integrating stakeholder input into our safety practices. |
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| Topic #4 | Community Health, Safety, and Security | ||||||||||||||||
| An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights |
Community Health and Safety are material topics due to their significant impact on the well-being of local communities. Positive impacts include improved health outcomes through targeted investments, stronger community relationships, and economic growth. Effective management is crucial to mitigating potential risks, such as health hazards and strained relationships. |
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| How is the topic connected to the entity's strategy and financial performance |
Community Health & Safety is an area of our business strategy that is outlined in our ESG Policy and guides actions. More specifically, within the ESG policy we make the following commitments Community Rights, Health, and Safety • Prioritize the health and safety of the communities in which we operate. • Actively engage with local stakeholders, implement measures to mitigate health and safety risks, and contribute to community well-being initiatives. • Monitor the environmental impacts of our operations to ensure they align with community health and safety standards. • Ensure that operations do not support illegal conflicts, human rights abuses, or violations of international humanitarian law. • Establish minimum standards for suppliers, encompassing environmental, labor, and human rights criteria and ensure compliance through diligent monitoring. |
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| Where the impacts occur |
The impacts of Community Health and Safety initiatives are localized, directly affecting the communities in proximity to Lithium Ionic's operations. |
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| The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships |
Lithium Ionic is directly involved in addressing the impacts on Community Health and Safety. The organization recognizes its responsibility to proactively identify and address the needs and concerns of local communities. |
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| Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships | Both activities and business relationships | ||||||||||||||||
| Describe/provide a link to the corporate policies or commitments regarding the topic |
See our ESG Policy and Human Rights Policy to see our commitments regarding community health and safety |
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|
ESG Policy Human Rights Policy |
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| Explain how the organization manages the topic and actions to prevent or mitigate potential negative impacts |
To manage and prevent negative impacts, Lithium Ionic has engaged a third-party consultant to facilitate ongoing communication with local communities near the Bandeira project. This initiative ensures the organization can effectively identify and address the needs and concerns of these communities. Additionally, programs for water, waste, air, and noise/vibration are designed with community health and safety as a priority, supported by regular monitoring to ensure these initiatives meet community expectations and uphold safety standards. These efforts align with our ESG Policy and Human Rights Policy. |
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| Describe actions to address actual negative impacts, including actions to provide for or cooperate in their remediation |
In the unlikely occurrence of actual negative impacts, Lithium Ionic is unwavering in its commitment to promptly address and remediate any issues. The organization places a strong emphasis on proactive measures to prevent adverse impacts, prioritizing cooperation with stakeholders and offering the necessary support for remediation efforts if needed. |
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| Describe actions to manage actual and potential positive impacts |
Lithium Ionic actively seeks to manage positive impacts on community health and safety by fostering strong relationships with local communities. This includes implementing measures that go beyond regulatory requirements to contribute positively to the well-being of communities. |
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| Report the processes used to track the effectiveness of the actions; |
• Stakeholder feedback • Measurement systems |
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| Report the goals, targets, and indicators used to evaluate progress; |
Our future target to assess community health and safety includes the number of grievances reported through the third-party grievance mechanism, which will be implemented in Q1 2025.. Once we begin construction and production, our environmental monitoring programs will also serve as indicators of our progress. Our goal is to conduct all operations safely and responsibly, ensuring no harm is caused to those in surrounding communities. |
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| Report the effectiveness of the actions, including progress toward the goals and targets; any related adjustments |
At present, our project has not caused any adverse impacts on Community Health & Safety, validating the effectiveness of our actions in achieving the intended outcomes. Nevertheless, as we transition toward a production scenario, our monitoring efforts will intensify further to consistently prioritize the well-being of local communities. |
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| Lessons learned and how these have been incorporated into the organization’s operational policies and procedures |
Lithium Ionic has integrated lessons into its operations, emphasizing a proactive stance on Community Health and Safety. With a positive track record in the current project phase, we've learned the importance of prevention. As we transition to production, our operational policies now underscore heightened monitoring to consistently prioritize the health of local communities and the need for on-going dialogue to ensure that all community members are heard and their opinions are addressed. |
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| Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective |
Engagement with stakeholders, particularly local communities, is essential in shaping and evaluating our actions. To facilitate this, Lithium Ionic has partnered with a third-party community consultant to gather input from local communities, ensuring that we are aligned with their needs and expectations. This feedback will be shared with Lithium Ionic and integrated into our strategic decision-making processes. |
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| Topic #5 | Legal & Regulatory Environment | ||||||||||||||||
|
Legal Compliance: Ensuring compliance with all relevant laws and regulations in every region where we operate. |
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| An explanation of why the topic is material; describe the actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights |
Legal compliance is a material topic for Lithium Ionic due to its critical role in supporting sustainable operations, enhancing the company’s credibility, and fostering positive relationships with stakeholders and local communities. While non-compliance with Canadian and Brazilian laws could pose risks such as legal actions, penalties, and reputational harm, adherence to regulations ensures operational stability, strengthens trust, and promotes long-term success. |
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| How is the topic connected to the entity's strategy and financial performance |
Legal Compliance is an area of our business strategy that is outlined in our Code of Business Conduct and Ethics, Anti-Bribery Policy, Audit Committee Charter, and ESG Policy. Within the ESG policy we make the following commitments to legal compliance Compliance and Disclosure • Adhere to all relevant legal requirements as a baseline standard while proactively seeking opportunities to exceed compliance. • Take responsibility for environmental performance and strive for continuous improvement. • Ensure independent audits are carried out to analyze balance sheets, financial statements, administrative processes, and company policies. • Ensure a systematic approach to identifying all host country laws, regulations, permits, and licenses applicable to the project/operation. This will be followed by regular monitoring to verify compliance, regulatory reporting, and payment obligations, with documented status updates. • In cases of non-compliance, provide interested parties with summaries of regulatory non-compliance issues upon request, ensuring confidentiality when necessary. • Disclosure of payments to the governments of host countries, broken down by type and recipient. As well as dissemination of project-level information, including revenues and payments. • Implement internal controls and procedures to prevent, detect, and address corruption, including mandatory anti-corruption protocols for employees and contractors. If any of these controls fail to prevent corruption, an annual report detailing incidents and actions taken will be generated. |
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| Where the impacts occur |
The impacts of legal compliance are primarily felt in the areas where Lithium Ionic operates, which includes Canada and Brazil. |
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| The organization’s involvement with the impacts. e.g., whether the organization has caused or contributed to the impacts, or is directly linked to the impacts through its business relationships |
Lithium Ionic's involvement with legal compliance impacts is direct, as it is obligated to adhere to the laws of the countries in which it operates. |
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| Report whether the organization is involved with the negative impacts through its activities or as a result of its business relationships, and describe the activities or business relationships | Both activities and business relationships | ||||||||||||||||
| Describe/provide a link to the corporate policies or commitments regarding the topic |
See attached for Lithium Ionic's corporate governance policies. These policies include the Code of Business Conduct and Ethics, Audit Committee Charter, Anti-Bribery Policy, and ESG Policy. |
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|
Code of Business Conduct and Ethics ESG Policy Anti-Bribery Policy |
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| Explain how the organization manages the topic and actions to prevent or mitigate potential negative impacts |
Lithium Ionic manages the topic of legal compliance through compliance mechanisms. This includes the existence of an audit committee, ongoing financial disclosures, and the close monitoring of changes in relevant laws. |
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| Describe actions to address actual negative impacts, including actions to provide for or cooperate in their remediation |
In the event of non-compliance, Lithium Ionic has established protocols for addressing negative impacts. This may involve immediate corrective actions, cooperation with regulatory authorities, and the implementation of remediation measures to rectify any harm caused. |
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| Describe actions to manage actual and potential positive impacts |
Lithium Ionic actively manages positive impacts by ensuring compliance not only with the minimum legal requirements but also by adopting best practices that contribute positively to the communities and environments in which it operates. |
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| Report the processes used to track the effectiveness of the actions; |
• Stakeholder feedback • Impact assessments • Measurement systems |
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| Report the goals, targets, and indicators used to evaluate progress; |
Lithium Ionic aims to achieve zero instances of non-compliance annually. While this target was not met in 2024 due to an environmental fine associated with improper vegetation removal, it serves as a valuable learning opportunity, driving our commitment to achieving this goal in the future. |
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| Describe how engagement with stakeholders has informed the actions taken and how it has informed whether the actions have been effective |
Lithium Ionic prioritizes engagement with key stakeholders, particularly regulatory bodies governing local, Brazilian, and Canadian legislation. Lithium Ionic is committed to strict adherence to all legal requirements and obligations. In response to any legal changes, we proactively stay informed to prevent violations and maintain a continuous commitment to legal compliance. |
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| Supply Chain | |||||||||||||||||
| Provide a description of the organization’s supply chain, including the types of suppliers (e.g., equipment, consumables, logistics, brokers, contractors, wholesalers, etc.) |
As an exploration and development company, our supply chain is distinct from the conventional production and supply of goods. Instead, our suppliers provide essential services crucial to the advancement of our project, notably drilling and technical services. Lithium Ionic engages specialized third-party firms to oversee and carry out essential operational tasks, including technical services such as surveying and studies, ensuring high-quality expertise and execution. All personnel involved in these operations are engaged on a third- party contractor basis. |
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| Total estimated number of suppliers throughout its supply chain and in each tier (e.g., first tier, second tier) | 316 | ||||||||||||||||
| Estimated number of first tier suppliers | 218 | ||||||||||||||||
| Estimated number of second tier suppliers | 98 | ||||||||||||||||
| Estimated number of third tier suppliers | 0 | ||||||||||||||||
| The types of activities related to the organization’s products and services carried out by its suppliers (e.g., manufacturing, providing consulting services) |
• Consultancy Services • IT Services • Food and hospitality • Mobile Equipment • Construction materials • Transporation Services • Spare Parts |
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| What is the nature of its business relationships with its suppliers |
• Contractual • Project-based • Event-based • Long-term • Short-term |
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| The estimated monetary value of payments made to all suppliers (currency, Thousands) | 56,712,000.000 | ||||||||||||||||
| BRL | |||||||||||||||||
| The geographic location of its suppliers | Brazil | ||||||||||||||||
| Environment | |||||||||||||||||
| Climate Change - Stewardship | |||||||||||||||||
| Strategy | |||||||||||||||||
| Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning | Yes | ||||||||||||||||
|
In 2024, Lithium Ionic completed its inaugural climate risk assessment, producing both an internal and an external TCFD-aligned report. This assessment enabled us to pinpoint critical areas impacting our operations, allowing us to proactively integrate these climate-related risks and opportunities into our strategic planning. Additionally, in 2024, we introduced our ESG Policy, which outlines our commitments to managing climate change and related risks and opportunities. These efforts ensure that climate change considerations are embedded within our operational practices, supporting a resilient and forward-looking approach as we advance our projects. |
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| Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities |
No-we are planning to introduce a climate- related risk management process in the next two years |
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|
In 2024, we published our inaugural TCFD- Aligned Climate Risk Assessment, marking an essential first step in identifying and understanding climate-related risks and opportunities most relevant to our operations. This assessment drew on existing climate data and literature to outline key climate risks and opportunities and their qualitative impacts on our activities. While specific quantitative metrics and impacts have yet to be determined, advancing our understanding in this area remains a priority. Although we have not yet implemented a formal Climate Change Management Plan, we are committed to developing one in the near future to align our operations proactively with climate considerations. This forthcoming plan will directly address the risks and opportunities identified in our Climate Risk Assessment and establish measurable targets to monitor our progress in addressing these critical climate challenges. |
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| Risk Assessments | |||||||||||||||||
| Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business | Other, please specify | ||||||||||||||||
|
Our 2024 Climate Risk Assessment identified several inherent climate-related risks that could significantly impact our operations. Key risks, detailed in our external TCFD-aligned report available on our website, include fluctuating water levels that may lead to water scarcity, increasingly stringent regulatory requirements for mining activities, heightened public scrutiny of the mining industry in the context of climate change, and the adoption of alternative technologies that could reduce demand for lithium. While these risks align with TCFD guidelines, our internal assessments provide a more in-depth examination of additional climate-related considerations. |
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| Opportunity Assessments | |||||||||||||||||
| Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business | Other, please specify | ||||||||||||||||
|
Our 2024 Climate Risk Report outlines three primary climate-related opportunities with potential positive impacts on our operations: increased demand for lithium driven by the renewable energy transition, ongoing renewable energy development in Minas Gerais, Brazil, and opportunities for community co-adaptation initiatives that can enhance community relations and climate resilience. Additional opportunities are explored in greater depth within our internal report. |
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| Greenhouse Gas Emissions | |||||||||||||||||
| Scope 1 | |||||||||||||||||
| Disclose the entity's absolute gross greenhouse gas (GHGs) emissions generated during the reporting period, expressed as metric tonnes of CO2 equivalent (tonne CO₂-e) | |||||||||||||||||
| Fuel related (CH₄) (tonnes) | 0.005 | ||||||||||||||||
| Fuel related nitrous oxide (N₂O) (tonnes) | 0.001 | ||||||||||||||||
| Carbon dioxide (CO₂) (tonne CO₂-e) | 131.620 | ||||||||||||||||
| Methane (CH₄) (tonne CO₂-e) | 0.125 | ||||||||||||||||
| Nitrous oxide (N₂O) (tonne CO₂-e) | 0.298 | ||||||||||||||||
| The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne) | 132.043 | ||||||||||||||||
| The percentage of its gross global Scope 1 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, such as cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms | 0.0000% | ||||||||||||||||
| Discuss any change in its Scope 1 emissions from the previous reporting period, including whether the change was due to emissions reductions, divestment, acquisition, mergers, changes in output, and/or changes in calculation methodology (i.e. any changes the entity made to the measurement approach, inputs and assumptions during the reporting period and the reasons for those changes, if any) |
This year’s Scope 1 emissions show a slight increase compared to last year’s total of 123.922 CO₂-e. This change reflects the heightened on-site activities and the expansion of exploration campaigns as we continue advancing the scope of our projects. |
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| Scope 2 | |||||||||||||||||
| Does the company purchase externally supplied energy (grid electricity) | Yes | ||||||||||||||||
| Report the total electricity purchased from external suppliers for the reporting year in gigajoules (GJ) | 274.777 | ||||||||||||||||
| In what jurisdiction is the source of energy (utility) located | Brazil | ||||||||||||||||
| Conversion factor (see Guidance): | 0.362 | ||||||||||||||||
| Does the company purchase externally supplied heat | No | ||||||||||||||||
| Does the company purchase externally supplied steam | No | ||||||||||||||||
| Does the company purchase externally supplied cooling | No | ||||||||||||||||
| The total amount of gross global Scope 2 GHG emissions (CO₂-e) (tonne) | 27.630 | ||||||||||||||||
| Percentage of its gross global Scope 2 GHG emissions that are covered under an emissions-limiting regulation or program that is intended to directly limit or reduce emissions, i.e., cap-and-trade schemes, carbon tax/fee systems, and other emissions control (e.g., command-and-control approach) and permit-based mechanisms | 0.0000% | ||||||||||||||||
| Discuss long-term and short-term strategy or plan to manage Scope 2 emissions, emissions reduction targets, and an analysis of performance against those targets |
We are committed to sourcing hydroelectric power from the Irapé Dam to support our on- site electrical operations. This strategic decision plays a central role in our efforts to significantly reduce Scope 2 emissions across all phases of our operations. In partnership with CEMIG, we are developing hydroelectric transmission line infrastructure for the Bandeira Site. This collaboration highlights our dedication to sustainable practices while advancing our integration of clean energy solutions. The project will include the construction of a main substation and five secondary substations, ensuring reliable and efficient energy distribution to support key operational activities. Additionally, one of our Salinas sheds is powered by solar energy, enabling us to generate electricity on-site and efficiently meet its power requirements. As our project progresses, we plan to further expand the use of solar energy, reinforcing our commitment to reducing Scope 2 emissions and promoting renewable energy development in the region. |
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| Scope 3 | |||||||||||||||||
| Is the Organization disclosing gross "other indirect" global Scope 3 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol (tonne CO₂-e)? These emissions are not included in Scope 2 and occur outside of the organization including both upstream and downstream emissions, e.g., transporting fuel to market, or transporting fuel to the plant or site to create your product, or transporting your product to market | No | ||||||||||||||||
| Energy | |||||||||||||||||
| Energy Consumption | |||||||||||||||||
| Total energy consumption within the organization (gigajoules, GJ) | 298.775 | ||||||||||||||||
| Report the energy owned and controlled by the organization consumed in gigajoules for the following | 298.775 | ||||||||||||||||
| Electricity purchased/generated for consumption (gigajoules, GJ) | 274.777 | ||||||||||||||||
|
This was electricity generated by our solar panels at one of the sheds at our Salinas site. This energy was then directly consumed by the shed. |
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| Heating purchased/generated for consumption (gigajoules, GJ) | 0.000 | ||||||||||||||||
| Cooling purchased/generated for consumption (gigajoules, GJ) | 0.000 | ||||||||||||||||
| Steam purchased/generated for consumption (gigajoules, GJ) | 0.000 | ||||||||||||||||
| Non-renewable fuel consumed (gigajoules, GJ) | 0.000 | ||||||||||||||||
| Renewable fuel consumed (gigajoules, GJ) | 23.998 | ||||||||||||||||
| Energy Management | |||||||||||||||||
| Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity) including the fuel types used (e.g., biomass, hydro-electric power or bioenergy) | 298.775 | ||||||||||||||||
| Percentage energy consumed that was supplied by grid electricity | 91.9679% | ||||||||||||||||
| Percentage of energy consumed that is renewable energy (does not include purchased grid-mix) | 8.0321% | ||||||||||||||||
| Water Management - Stewardship | |||||||||||||||||
| Quality and Quantity Dependency | |||||||||||||||||
| Rate the importance (current and future) of freshwater quality and quantity to the success of your business | |||||||||||||||||
| Direct use importance rating | Vital | ||||||||||||||||
|
Freshwater is critical for the upcoming construction phase of our lithium mining project, including dust suppression, construction activities, and potential initial processing needs. Ensuring access to sufficient and high-quality freshwater is essential to meet regulatory requirements and support project development. |
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| Indirect use importance rating | Vital | ||||||||||||||||
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While our direct use of freshwater is a priority, maintaining good water quality in the surrounding environment will be important for community relations and mitigating potential environmental impacts as we progress towards full-scale operations. |
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| Rate the importance (current and future) of sufficient quantity of recycled, brackish and/or produced water for the success of your business | |||||||||||||||||
| Direct use importance rating | Vital | ||||||||||||||||
|
As we transition into the construction and production phase, the integration of recycled and processed water will become a critical component of our water resource management strategy. Our goal is to reuse 90% of process water during production, significantly reducing our reliance on freshwater sources and reinforcing our commitment to sustainable and responsible water use practices. |
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| Indirect use importance rating | Important | ||||||||||||||||
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Utilizing alternative water sources, such as recycled or brackish water, aligns with our sustainability goals and minimizes environmental impact. By reducing our dependence on local water supplies, this approach ensures that critical water resources remain available for indirect operations and stakeholders within the region. |
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| Risk Assessments | |||||||||||||||||
| Does your organization undertake a water-related risk assessment | Yes, water-related risks are assessed | ||||||||||||||||
|
In 2024, we undertook a comprehensive series of water studies to support submissions to the licensing agency. These studies included the Surface Water Monitoring Report, Groundwater Monitoring Report, Underground Water Dynamics Assessment, Hydrological Monitoring, and Seasonal Water Fluctuation Analysis. Additionally, Lithium Ionic completed its inaugural Climate Risk Assessment, which provided a detailed evaluation of water-related risks. This assessment focused on regional changes in precipitation, flood risks, and drought vulnerabilities. Furthermore, our Environmental Control Report established a baseline assessment of regional water conditions, offering critical insights into potential environmental risks and laying the groundwork for future monitoring efforts. |
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| Have you identified any inherent water-related risks with the potential to have a substantive financial or strategic impact on operations |
Yes, both in direct operations and the rest of our value chain |
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| Provide details of identified risk in your direct operations with material financial or strategic impacts: Risk 1 | |||||||||||||||||
| Type of risk | Physical | ||||||||||||||||
| Primary risk driver | Physical - Increased water scarcity | ||||||||||||||||
| Primary potential impact | Reduction or disruption in production capacity | ||||||||||||||||
| Risk timeframe | Other, please specify | ||||||||||||||||
|
According to our climate risk assessment, the potential for drought is present across all time horizons—short-term, medium-term, and long- term—under various climate change Shared Socioeconomic Pathways (SSPs). |
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| Magnitude of potential impact | Medium-high | ||||||||||||||||
| Likelihood of potential impact | More likely than not | ||||||||||||||||
| Primary response |
Adopt water efficiency, water reuse, recycling and conservation practices |
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| Cost of response and description of response |
Our water recycling efforts will be implemented during the production phase. While a precise cost estimate is still under development, we plan to source processing water from the Ribeirão Piauí catchment. We anticipate a high level of efficiency in our recycling system, with an expected reuse rate of around 90% for the water entering the process. The primary sources of water loss will be through evaporation and residual moisture in the tailings and final product. This approach will help us manage risk more effectively while supporting the conservation of local water resources. |
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| Opportunity Assessments | |||||||||||||||||
| Have you identified any water-related opportunities with the potential to have a substantive financial or strategic impact on your business |
Yes, we have identified opportunities and some or all are being realized |
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| Opportunity 1 | |||||||||||||||||
| Type of opportunity |
Markets: Strengthened social license to operate |
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|
Opportunities for co-adaptation with local communities and stakeholders. |
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| Opportunity timeframe | Other, please specify | ||||||||||||||||
|
According to our climate risk assessment, the potential for community co-adaptation is present across all time horizons—short-term, medium-term, and long-term—under various climate change Shared Socioeconomic Pathways (SSPs). |
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| Magnitude of potential impact | Medium-high | ||||||||||||||||
| Potential impact financial figure and explanation |
Co-adaptation with local communities facing similar climate challenges offers a unique opportunity. By adopting collaborative approaches to managing climate risks—such as sharing water resources and improving infrastructure—we can enhance community resilience and create shared benefits. We are committed to strong ESG practices, ensuring transparent communication and active stakeholder engagement to build trust and maintain our social license to operate. |
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| Policy | |||||||||||||||||
| Does your organization have a documented water policy | Other, please specify | ||||||||||||||||
|
We currently have an ESG Policy that outlines our commitments regarding water management. |
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| Strategy | |||||||||||||||||
| Are water-related issues integrated into any aspects of your long-term strategic business plan | Yes, water-related issues are integrated | ||||||||||||||||
| If water-related issues are integrated into any aspects of your long-term strategic business plan, please describe further |
By thoroughly evaluating the diverse needs and conditions of our local water sources, we developed a new water management plan for our Bandeira site to secure a consistent water supply, even amidst annual fluctuations. Additionally, once production begins, we aim to recycle 90% of our water, significantly reducing overall consumption in a region that is particularly vulnerable to drier conditions. |
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| Water | |||||||||||||||||
| Reuse and recycle | |||||||||||||||||
| Total volume of water that has been used in an operational task and is recovered and used again in an operational task, either without treatment (reuse) or with treatment (recycle) (megalitres) | 0.000 | ||||||||||||||||
| Water Management | |||||||||||||||||
| Disclose the amount of freshwater water that was consumed in its operations (in thousands of cubic meters) | 2.034 | ||||||||||||||||
| Analyse and list all operations for water risks and identify activities that withdraw and consume water in locations with High (40–80%) or Extremely High (>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct |
Our operations are not situated in areas that are classified as High or Extremely High Water Risk according to the World Resources Institute's (WRI) Water Risk Atlas tool. |
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| Disclose the freshwater withdrawn in locations with High or Extremely High Baseline Water Stress as a percentage of the total water withdrawn | Does Not Apply | ||||||||||||||||
| Disclose freshwater consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed | 0.0000% | ||||||||||||||||
| Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations | No | ||||||||||||||||
| Total number of incidents of non-compliance associated with water quality permits, standards, and regulations, including violations of a technology-based standard and exceedances of quality-based standards (note: only those that resulted in a formal enforcement action(s)) | 0 | ||||||||||||||||
|
We have had no instances of non-compliance related to water quality permits, standards, or regulations. |
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| Water and Effluents | |||||||||||||||||
| Water Consumption | |||||||||||||||||
| Report the total water consumption from all areas in megalitres | 2.034 | ||||||||||||||||
| Report the total water consumption from all areas with water stress in megalitres | 0.000 | ||||||||||||||||
| Waste Management | |||||||||||||||||
| Tailings Storage Facilities Management | |||||||||||||||||
| Does your company manage Tailings Storage Facilities | No | ||||||||||||||||
|
At present, tailings are not generated, given the early exploration phase of the project. However, in preparation for future production, we have decided to utilize dry-stack tailings for our Bandeira site, which reduces overall water consumption and offers improved safety and stability compared to traditional tailing methods. |
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| Innovation | |||||||||||||||||
| Describe nature of spending on Research, Development and Technologies for waste management compliance and improvement |
In 2024, our investment in waste management was limited due to our early stage of development. Our primary focus was on waste collection and selective disposal at our Salinas unit. Through our partnership with Association of Recyclable Material Collectors of Salinas (ASCASAL), we are committed to the responsible management of waste generated at our Salinas Project. Waste from warehouses, accommodations, and offices is carefully sorted on-site before being handed over to ASCASAL, who oversee transactions with certified companies to ensure proper and sustainable final disposal. In addition, we are actively exploring opportunities to recycle non-hazardous waste from our future DMS tailings, with a particular focus on redirecting this waste to support municipal projects. While this initiative is still in the planning phase, it represents a significant step towards enhancing the circularity of our operations. |
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| Biodiversity | |||||||||||||||||
| Management Plan | |||||||||||||||||
| Describe the environmental and biodiversity management plan(s) implemented at active sites |
We have successfully completed the Environmental Control Report and Plan which outlines the baseline environmental conditions of our Bandeira site, as well as our proposed management plans. Our Environmental Control Plan outlines a series of programs and plans focused on vegetation suppression and the conservation of flora and fauna, which will be implemented as we move towards construction and production scenarios. In addition, in 2024 we completed a seedling nursery for native species at our Bandeira Project site, supporting ecosystem restoration and environmental education. As part of our Degraded Areas Recovery Plan (PRAD), we have planted seedlings across the Ribeirão Piauí Permanent Preservation Area, contributing to environmental restoration, biodiversity enhancement, and sustainable practices. The PRAD prioritizes restoring degraded areas beyond the Directly Affected Area (ADA), addressing challenges such as vegetation removal, soil compaction, and landscape alterations. Its seven-stage methodology includes fencing, topographic reformation, erosion control, soil preparation, revegetation with native species, and post- planting maintenance. Conservation efforts, such as installing artificial perches and branch windrows to attract seed-dispersing fauna and implementing drainage systems for water management and erosion control, strengthen the plan. Additionally, a five-year monitoring program evaluates vegetation recovery, soil health, and erosion, ensuring progress aligns with the restoration objectives. This commitment is further reinforced by our ESG policy, which includes the following key commitments: Flora and Fauna Management and Conservation: - Conduct thorough baseline assessments to identify species and ecosystem services directly impacted within the project area. -Integrate biodiversity conservation considerations and land use planning into all operational phases, ensuring caution to prevent, manage, and mitigate the impacts of our activities on surrounding habitats, soils, and flora and fauna. -Develop responsible biodiversity management strategies that clearly outline objectives, responsibilities, and resources required within and around the areas where Lithium Ionic operates. -Prioritize stakeholder engagement to identify land use and conservation interests. Measures and Goals: -Disclose defined goals and objectives aimed at preserving biodiversity, informed by scientific consensus and relevant progress assessment indicators. -Implement preventive and corrective actions to minimize impacts, with responsive measures established for exceedances and recovery efforts. |
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| 1.1 Lifecycle stages to which the plan(s) apply |
• Site development • Production • During closure • Decommissioning |
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| 1.3 The underlying references for its plan(s), including whether they are codes, guidelines, standards, or regulations; whether they were developed by the entity, an industry organization, a third-party organization (e.g., a non-governmental organization, a governmental agency, or some combination of these groups) |
These plans were developed in collaboration with the consulting group NeoAmbiental in Brazil, which provided valuable insights and outlined the necessary programming for this critical area. The ESG Policy was formulated with guidance from internationally recognized standards and was crafted by the dedicated teams at Lithium Ionic and MGLIT. |
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| Impacts | |||||||||||||||||
| Does access to the site involve traversing a protected area | No | ||||||||||||||||
| Do any of the entities concessions share a watershed with a protected area | Yes | ||||||||||||||||
| Provide context and description of site access involving traversing protected areas, and/or watersheds shared with a protected area. Include reference to measures in place to assure access, any proactive programs to support the biodiversity of the protected area, and any formal complaints or compliance issues and related steps to resolve |
Access to the site does not require crossing any formally designated protected areas. The project area is reachable via BR 367 and highways licensed by the Brazilian Lithium Company (CBL), ensuring direct access without entering fully protected conservation units or sustainable use areas. Although the project shares a watershed with local water bodies, including the Ribeirão Piauí—important for both operations and surrounding ecosystems—it is located outside the buffer zones of fully protected conservation units. While near environmentally sensitive areas, such as Permanent Preservation Areas (APPs), the project does not overlap with any officially designated protected areas. |
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| Percentage of proved reserves in sites with protected conservation status or in areas of endangered species habitat | Does Not Apply | ||||||||||||||||
| Percentage of probable reserves in sites with protected conservation status or in areas of endangered species habitat | Does Not Apply | ||||||||||||||||
| Grade of probable reserves located in areas either with protected conservation status or in areas of endangered species habitat | |||||||||||||||||
| Social | |||||||||||||||||
| Scale of the Organization | |||||||||||||||||
| Direct Employee Information | |||||||||||||||||
| Total number of full-time employees | 93 | ||||||||||||||||
| Full-time - Male | 67 | ||||||||||||||||
| Full-time - Female | 26 | ||||||||||||||||
| Full-time - Non-binary | 0 | ||||||||||||||||
| Full-time - Gender not disclosed | 0 | ||||||||||||||||
| Total number of part-time employees | 10 | ||||||||||||||||
|
Our part time employees reflect the contractors hired at the corporate level who provide support to LTH on a contractual part- time basis |
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| Part-time - Male | 2 | ||||||||||||||||
| Part-time - Female | 8 | ||||||||||||||||
| Part-time - Non-binary | 0 | ||||||||||||||||
| Part-time - Gender not disclosed | 0 | ||||||||||||||||
| Total number of permanent employees (full-time & part-time) | 103 | ||||||||||||||||
| Permanent employees - Male | 69 | ||||||||||||||||
| Permanent employees - Female | 34 | ||||||||||||||||
| Permanent employees -Non-binary | 0 | ||||||||||||||||
| Permanent employees - Gender not disclosed | 0 | ||||||||||||||||
| Total number of temporary employees | 0 | ||||||||||||||||
| Total number of direct employees (includes full-time, part-time, temporary; exclude workers who are not employees) | 103 | ||||||||||||||||
| Direct employees - Male | 69 | ||||||||||||||||
| Direct employees - Female | 34 | ||||||||||||||||
| Direct employees - Non-binary | 0 | ||||||||||||||||
| Direct employees - Gender not disclosed | 0 | ||||||||||||||||
| Out of the total direct employees, what is the number of non-guaranteed hours direct employees | 0 | ||||||||||||||||
| Describe the methodologies and assumptions used to compile the data |
This data was obtained from our corporate accountant and on-site HR coordinator. Our organization consists of both full-time employees and contractors. According to Brazilian labour laws, there are two contract types: CLT and PJ. CLT contracts represent full- time salaried employees, whereas PJ contracts resemble a contractor employment relationship. For the purpose of this report, all CLT and PJ employees will be categorized as 'Direct Employees,' since both have a direct contractual obligation with Lithium Ionic, rather than being associated through a third- party provider. In addition, for the purposes of this report, all employees at the corporate level are considered direct employees, with there also being direct, part-time employees. |
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| Are the numbers reported in head count, full-time equivalent (FTE), or using another methodology | The numbers are reported in head count. | ||||||||||||||||
| Are the numbers reported at the end of the reporting period, as an average across the reporting period, or using another methodology |
Employee data is reported at the end of each reporting period, with monthly updates to ensure accurate tracking. This approach allows us to monitor key metrics such as new hires, turnover rates, and gender representation, providing valuable insights into workforce trends and fluctuations throughout the reporting period. |
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| Total Workforce | |||||||||||||||||
| Total workforce (includes direct employees and workers who are not employees) | 103 | ||||||||||||||||
| Total female workforce | 34 | ||||||||||||||||
| Female workforce as percentage of total employed workforce | 33.0097% | ||||||||||||||||
| Total male workforce | 69 | ||||||||||||||||
| Male workforce as percentage of total employed workforce | 66.9903% | ||||||||||||||||
| Employment | |||||||||||||||||
| Turnover & Gender Breakdown | |||||||||||||||||
| Female direct employees | |||||||||||||||||
| Total number of turnover (the number of females that left during the period) | 7 | ||||||||||||||||
| Rate of turnover, females | 21.5385% | ||||||||||||||||
| Male direct employees | |||||||||||||||||
| Total number of turnover (the number of males that left during the period) | 21 | ||||||||||||||||
| Rate of turnover, males | 28.0000% | ||||||||||||||||
| Rate of turnover, non-binary | Does Not Apply | ||||||||||||||||
| Rate of turnover, "gender not disclosed" | Does Not Apply | ||||||||||||||||
| Report the total number and rate of turnover for all Direct Employees | |||||||||||||||||
| Total number of turnover (the number that left during the period) | 28 | ||||||||||||||||
|
Our turnover rate this year reflects adjustments in our exploration strategy, which included a significant reduction in exploration spending to align with our current project priorities. This decision temporarily limited opportunities for certain roles, prompting some employees to seek new opportunities proactively. These shifts were a practical response to evolving business needs and are part of the normal cycles within the industry. |
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| Rate of turnover - direct employees | 26.0465% | ||||||||||||||||
| Turnover & Age Breakdown | |||||||||||||||||
| Direct Employees aged 30 years old and under | |||||||||||||||||
| Total number of turnover (the number that left during the period) | 9 | ||||||||||||||||
| As percent of total direct employees | 24.2718% | ||||||||||||||||
| Rate of turnover | 32.7273% | ||||||||||||||||
| Direct Employees aged between 30 and 50 years old | |||||||||||||||||
| Total number of turnover (the number that left during the period) | 12 | ||||||||||||||||
| As percent of total direct employees | 58.2524% | ||||||||||||||||
| Rate of turnover | 19.8347% | ||||||||||||||||
| Direct Employees over 50 years old | |||||||||||||||||
| Total number of turnover (the number that left during the period) | 7 | ||||||||||||||||
| As percent of total direct employees | 15.5340% | ||||||||||||||||
| Rate of turnover | 37.8378% | ||||||||||||||||
| Identify types of employees captured in the turnover rate calculations | All employees on the payroll | ||||||||||||||||
|
All employees included in this turnover rate are considered "Direct Employees" and were either under the CLT or PJ contract type and at the corporate level. |
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| Average age of direct employees | 40 | ||||||||||||||||
| Diversity and Equal Opportunity | |||||||||||||||||
| Diversity of Governance Bodies | |||||||||||||||||
| Report the percentage of the diversity categories for the highest governance body and the total workforce per employee type | |||||||||||||||||
| Board of Directors | |||||||||||||||||
| Total Board of Directors | 8 | ||||||||||||||||
| Percent Male | 87.5000% | ||||||||||||||||
| Percent Female | 14.2857% | ||||||||||||||||
| Percent under 30 years of age | 0.0000% | ||||||||||||||||
| Percent between 30 and 50 years of age | 25.0000% | ||||||||||||||||
| Percent over 50 years of age | 75.0000% | ||||||||||||||||
| Diversity of Direct Employees | |||||||||||||||||
| Senior Management | |||||||||||||||||
| Total Senior Managers | 8 | ||||||||||||||||
| Percent Male | 100.0000% | ||||||||||||||||
| Percent Female | 0.0000% | ||||||||||||||||
| Percent under 30 years of age | 0.0000% | ||||||||||||||||
| Percent between 30 and 50 years of age | 50.0000% | ||||||||||||||||
| Percent over 50 years of age | 50.0000% | ||||||||||||||||
| Salaried (excluding Senior Management) | |||||||||||||||||
| Total Salaried (excluding Senior Management) | 55 | ||||||||||||||||
| Percent Male | 70.9091% | ||||||||||||||||
| Percent Female | 29.0909% | ||||||||||||||||
| Percent Non-Binary | 0.0000% | ||||||||||||||||
| Percent Gender not disclosed | 0.0000% | ||||||||||||||||
| Percent under 30 years of age | 34.5455% | ||||||||||||||||
| Percent between 30 and 50 years of age | 58.1818% | ||||||||||||||||
| Percent over 50 years of age | 5.4545% | ||||||||||||||||
| Percent of minority or vulnerable group individuals in the "Salaried Employee" category | Does Not Apply | ||||||||||||||||
| Technical Employees (skilled hourly) | |||||||||||||||||
| Total Technical Employees | 42 | ||||||||||||||||
|
All hourly technical employees are either contracted under the PJ contract type or employed on a contractor basis at the corporate level. |
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| Percent Male | 57.1429% | ||||||||||||||||
| Percent Female | 42.8571% | ||||||||||||||||
| Percent Non-Binary | 0.0000% | ||||||||||||||||
| Percent Gender not disclosed | 0.0000% | ||||||||||||||||
| Percent under 30 years of age | 14.2857% | ||||||||||||||||
| Percent between 30 and 50 years of age | 57.1429% | ||||||||||||||||
| Percent over 50 years of age | 28.5714% | ||||||||||||||||
| Labour Relations | |||||||||||||||||
| Collective Bargaining Agreements | |||||||||||||||||
| Percentage of total direct employees covered by collective bargaining agreements (%) | 51.4563% | ||||||||||||||||
| For direct employees not covered by collective bargaining agreements, report whether the organization determines their working conditions and terms of employment based on collective bargaining agreements that cover its other employees or based on collective bargaining agreements from other organizations |
All CLT employees at MGLIT are governed by Brazil’s Consolidation of Labour Laws (CLT). These contracts are aligned with collective bargaining agreements, empowering unions to negotiate enhanced wages, benefits, and working conditions beyond the legal minimum, providing customized protections for workers. Additionally, a significant portion of our workforce operates under different employment arrangements (PJ employees). Nonetheless, our ESG policy underscores our commitment to respecting employees' freedom of association and their right to engage in collective bargaining, ensuring fair and equitable treatment for all. |
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| Notice Periods | |||||||||||||||||
| Minimum number of weeks’ notice typically provided to direct employees in the active workforce and their representatives prior to the implementation of significant operational changes that could substantially affect them | 4 | ||||||||||||||||
|
The notice period for officers/directors is set at 12 months, while other corporate contractors are subject to a 3-month notice period. All employees on-site are given a notice period of 30 days for dismissal purposes. There is no set time frame for operational changes, but this is communicated through memorandums and daily dialogues. |
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| Occupational Health and Safety | |||||||||||||||||
| Work-related Injuries | |||||||||||||||||
| Injuries - For the total workforce | |||||||||||||||||
| Number of fatalities as a result of work-related injury | 0 | ||||||||||||||||
| Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours worked | 0.000 | ||||||||||||||||
| Number of high-consequence work-related injuries (excluding fatalities) | 0 | ||||||||||||||||
| Rate of high-consequence work-related injuries (excluding fatalities) | 0.000 | ||||||||||||||||
| Number of recordable work-related injuries | 1 | ||||||||||||||||
| Rate of recordable work-related injuries | 1.126 | ||||||||||||||||
| Main types of work-related injury, e.g., confined space, trips, falls, etc |
In 2024 the reported injuries include a minor cut. Additionally, there were incidents involving light vehicles; however, these resulted only in material damage and did not cause any injuries or absences from work. |
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| Number of hours worked | 177,648 | ||||||||||||||||
| Report the work-related hazards that pose a risk of high-consequence injury, including | |||||||||||||||||
| How have these hazards been determined |
In 2024, Lithium Ionic Group conducted an extensive Technical Report on Environmental Working Conditions (LTCAT) and a Hazard Identification (HAZID) analysis for the Bandeira Project. These assessments identified significant hazards with potential impacts on people, the environment, and assets, while proposing targeted measures to mitigate risks. The findings will directly inform the development and implementation of critical safety programs, such as the Risk Management Program and the Medical Control and Occupational Health Program, ensuring a proactive approach to workplace safety as the project advances into production. Moreover, our Environmental Control Report from 2023 identifies potential hazards, enabling the implementation of preventive measures and mitigation strategies. Ongoing safety monitoring, including incident tracking by the Operational Safety Technician, further informs training programs and promotes continuous safety improvements. |
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| Which of these hazards have caused or contributed to high-consequence injuries during the reporting period | None | ||||||||||||||||
| Report on actions taken or underway to eliminate other work-related hazards and minimize risks using the hierarchy of controls |
To eliminate hazards and minimize risks, several proactive actions are taken using the hierarchy of controls. A risk analysis was conducted by IMEST to identify potential causes of accidents and determine measures to eliminate or reduce those risks. Our on-site team engages in Daily Safety Dialogues, facilitated by a dedicated safety technician, where employees report near accidents and discuss potential hazards. This open communication enables the prompt identification of risks and assessment of whether further training or preventive measures are required. Regular inspections of both activities and vehicles are conducted, with a vehicle checklist in place to ensure all equipment is in safe working condition. Additionally, all incidents, including near misses, are tracked and analyzed, allowing for the continuous enhancement of safety protocols and the implementation of additional preventive actions as needed. This ongoing effort supports a safer working environment, relying on a combination of hazard elimination, substitution, and administrative controls while prioritizing safety in all operational activities. |
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| Whether and, if so, why any workers have been excluded from this disclosure, including the types of worker excluded, e.g., short-term contractors |
In our safety protocols, we ensure that safety guidelines are communicated to all employees and contractors. After reviewing relevant safety documents, we hold meetings to discuss occupational safety and clarify the activities that will be performed. Only after this discussion are employees and contractors authorized to begin their tasks. We exclusively document injuries sustained by our direct employees and contractors, excluding any injuries incurred by third-party workers involved in our operations. This approach is taken to maintain clear accountability for our workforce and to focus our safety reporting on those directly under our management. |
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| Disclose any contextual information necessary to understand how the data have been compiled, i.e., any standards, methodologies, and assumptions used |
Our Operational Safety Technician on-site maintains and documents all recordable injuries in our records. |
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| Safety Training | |||||||||||||||||
| Describe any occupational health and safety training provided to workers, including generic training, as well as training on specific work-related hazards, hazardous activities, or hazardous situations |
We provide comprehensive occupational health and safety training to our workers, encompassing both generic and specific training. This includes OFF ROAD 4x4 training for vehicle drivers, which equips them with the necessary skills to operate vehicles safely in challenging environments. Additionally, we conduct NR 06 Training focused on Personal Protective Equipment (PPE), ensuring that employees are well- informed about the proper use and maintenance of safety gear essential for their protection. We also offer Service Order Training NR 01, which covers specific operational protocols and safety measures relevant to our work activities. Moreover, we implement awareness campaigns related to Health and Safety at Work, designed to reinforce safety practices and promote a culture of vigilance among all employees. This multifaceted approach to training addresses a wide range of work-related hazards, hazardous activities, and situations, fostering a safer workplace environment. |
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| Security, Human Rights and Rights of Indigenous People | |||||||||||||||||
| Describe the nature of any social risks, for all operating countries, that could have a material impact on the operations |
The Minas Gerais State in Brazil, along with surrounding cities and communities, actively supports the development of the region for mining, aiming to boost economic growth and job creation. Our operations closely collaborate with local entities, adhering to all social and legal requirements. To date, there have been no instances of social risks throughout our operations, and we foresee no challenges in the future. Moreover, we have conducted surveys in local communities through a third-party consultant Integratio, seeking input on the project. Through the initial results of this community engagement initiative, no issues have been identified by local residents. This proactive engagement reflects our commitment to transparent communication and community involvement in our endeavors. |
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| Percentage of proved reserves that are located in or near areas that are considered to be indigenous peoples’ land | Does Not Apply | ||||||||||||||||
|
Comprehensive scoping studies have confirmed that our flagship Bandeira Project is not located near any Indigenous communities. In 2024, we further conducted an Impact Study to evaluate any potential effects on local Quilombola communities. The study, corroborated by the State Secretariat for Social Development, confirmed that the Quilombola community is not impacted by our project. |
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| Community Relations | |||||||||||||||||
| Artisanal and Small-Scale Mining | |||||||||||||||||
| Number of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site (not controlled by company/unauthorized) | 0 | ||||||||||||||||
| Percentage of company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site | Does Not Apply | ||||||||||||||||
| Discuss the processes, procedures, and practices to manage risks and opportunities associated with the rights and interests of communities in areas where it conducts business |
Lithium Ionic is committed to fostering strong relationships with local communities throughout all phases of its operations. We prioritize hiring local talent and sourcing from nearby suppliers, ensuring that the economic benefits of our projects contribute directly to the prosperity and resilience of the region. The presence of lithium in Minas Gerais offers a unique opportunity for regional economic growth, with Lithium Ionic projected to contribute approximately USD $915 million in local taxes over the life of the mine, as estimated in our 2024 Bandeira Feasibility study. In 2024, we took significant steps to enhance our stakeholder engagement by hiring a specialized community consulting group. Engaged for six months in the field, these consultants will conduct two consultations per community, ensuring that the voices and concerns of those directly impacted by our operations are thoroughly understood and integrated into our decision-making processes. They will also oversee an ongoing grievance mechanism that will be implemented in Q1 2025, providing a reliable channel for continuous feedback and addressing any issues that may arise. The consultancy also developed and delivered a comprehensive community diagnosis survey, along with a Social Communication and Engagement Plan and an Environmental Education Program plan, both scheduled for implementation in early 2025. To facilitate effective communication with local communities, we have established a dedicated email address communicated to community associations, along with distributing informational materials about the company and its projects at local events. Our focus on local hiring and enhancement of regional economic growth remains a priority, supported by the engagement of a consulting firm to develop participatory practices. At the project's peak, we expect to employ around 866 local workers, further contributing to economic inclusion and job creation. Our proactive engagement efforts highlight our commitment to transparent communication, trust-building, and aligning our projects with the long-term interests of the communities we serve. |
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| Programs | |||||||||||||||||
| Report on community relations programs, objectives and achievements in the past 3 years |
In 2024, Lithium Ionic Group strengthened its commitment to building meaningful and lasting relationships with the communities where it operates by implementing a series of impactful initiatives aimed at education, inclusivity, and urban revitalization. On March 18, the Company hosted an educational visit as part of a collaborative research initiative to deepen the understanding of pegmatite formation in the Bandeira Project region. This visit played a dual role—providing valuable support for ongoing doctoral research and contributing to the broader geological knowledge of the area. Through the Praça Viva Project in Araçuaí, Lithium Ionic Group has successfully transformed Praça Santa Teresa into a vibrant and inclusive community hub, showcasing its commitment to social responsibility and sustainable community development. This revitalization initiative included the creation of an accessibly designed green space, enhancing usability and inclusivity for all members of the community. To ensure the longevity of these efforts, Lithium Ionic Group has pledged to maintain Praça Santa Teresa for an additional year, reinforcing its dedication to enhancing public spaces and supporting the development of valuable community infrastructure. In recognition of International Women’s Day, Lithium Ionic Group participated in community celebrations across the regions where it operates, demonstrating its commitment to supporting and engaging with local communities. Through initiatives that celebrate and honor the contributions of women, the Company reinforces its dedication to fostering inclusion, respect, and meaningful connections within the communities it serves. In line with its broader mission, the Company also introduced a Private Social Investment Policy aimed at driving meaningful socio- environmental change within the communities where it operates. The Company will prioritize initiatives that align with its mission, vision, and core values, focusing on key areas such as social and health services, education, environmental stewardship, community development, and essential public infrastructure. By fostering strong stakeholder engagement and supporting these critical areas, the Company aims to contribute to sustainable progress and generate lasting benefits for both its operations and the communities it serves. Our contributions in 2023 laid the groundwork for these efforts, including the donation of five months' worth of oxygen to St. Vincent Hospital and the commitment to renovating two churches in the Barreiro and Barra da Barriguda communities. |
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| Risks and Opportunities | |||||||||||||||||
| Disclose the total number of site shutdowns or project delays due to non-technical factors | 0 | ||||||||||||||||
| Disclose the total aggregate duration (in days) of site shutdowns or project delays due to non-technical factors | 0 | ||||||||||||||||
| Governance | |||||||||||||||||
| Governance structure and composition | |||||||||||||||||
| Describe the governance structure, including committees of the highest governance body (e.g. the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc.) |
The governance structure of Lithium Ionic comprises a senior management team, a Board of Directors, and an Audit Committee. The senior management team and Board of Directors both consist of eight members, and the Audit Committee is appointed by the Board, as specified in the Audit Committee Charter. |
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| Identify and list the committees of the highest governance body that are responsible for decision making and overseeing the management of the organization’s impacts on the economy, environment and people including the oversight of sustainability-related risks and opportunities (e.g. Board level Environment Committee, Safety Committee, ESG Committee, Advisory Committee, etc.) |
The Board of Directors and CEO at Lithium Ionic are fully aware of potential impacts on the economy, environment, and people. We adhere to a rigorous approach, ensuring that no actions or projects are implemented without thorough consideration of the potential impacts these decisions could cause. |
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| Delegation of responsibility for managing impacts | |||||||||||||||||
| Describe whether the highest governance body has appointed any senior executives with responsibility for the management of organization’s impacts on the economy, environment and people (e.g., is it part of the Governance structure of the company, CEO's role, CFO's role, Sustanability Executive, etc.) |
The company has not designated a specific senior executive exclusively responsible for ESG matters. Instead, the Manager of Environmental and Sustainable Governance collaborates closely with our ESG Analyst to oversee initiatives and monitor progress. The Manager provides regular updates to senior executives on ESG developments, ensuring that environmental, social, and governance considerations are effectively integrated into the company's overall strategy. |
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| Describe whether the highest governance body has delegated responsibility for the management of impacts to other employees |
The responsibility for managing ESG impacts has been entrusted to our Manager of Environmental and Sustainable Governance and ESG analyst, who collaborate closely with senior management. Together, they lead the development of projects and initiatives geared towards effectively managing the organization's impact on the economy, environment, and society. |
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| Policy commitments | |||||||||||||||||
| Provide a description of the organization’s policy commitments for responsible business conduct |
At Lithium Ionic, our management team is dedicated to leading by example and fostering a culture of trust and transparency. Our governance framework prioritizes honesty, integrity, fairness, and responsibility in all operations. To reinforce these principles, Lithium Ionic follows a stringent Code of Business Conduct and Ethics and Anti-Bribery Policy. This comprehensive guide ensures that everyone associated with the company upholds the highest standards, addressing issues such as abuse, violence, discrimination, illegal activities, conflicts of interest, bribery, and unethical behavior, and setting a clear standard for ethical conduct throughout the organization. Additionally, our Whistleblower Policy provides a secure and anonymous avenue for employees and stakeholders to report concerns related to violations of these principles, ensuring accountability and transparency in addressing any issues that may arise. In 2024, we further advanced our commitment to these values by developing a Human Rights Policy, an ESG Policy, and a Diversity and Inclusion Policy. These policies are integral to our commitments regarding responsible business conduct: 1. Human Rights Policy: This policy underscores our dedication to respecting and promoting human rights within our operations and supply chain, ensuring fair treatment and safe working conditions for all employees. 2. ESG Policy: Our Environmental, Social, and Governance (ESG) Policy guides our efforts to operate sustainably, contribute positively to our communities, and maintain strong governance practices. 3. Diversity and Inclusion Policy: This policy reflects our commitment to creating a diverse and inclusive workplace where all employees feel valued and respected, promoting equality and preventing discrimination. These policies collectively support our framework for responsible business conduct, reinforcing our dedication to ethical practices, social responsibility, and sustainable growth. |
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| What are (if any) the authoritative intergovernmental instruments that the commitments reference |
Our commitment extends to complying with legal requirements and employment standards in both Canada and Brazil. Detailed references for each of our policies can be found within the respective policy documents. |
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| Do the commitments stipulate conducting due diligence | Yes | ||||||||||||||||
| Do the commitments stipulate applying the Precautionary Principle or Approach (see instructions). | Yes | ||||||||||||||||
| Do the commitments stipulate respecting human rights | Yes | ||||||||||||||||
| Describe the specific policy commitment to respect human rights |
Our human rights policy commitments can be found within our Human Rights Policy and ESG Policy. These commitments include • Promoting respect for human rights, rejecting discrimination in all Lithium Ionic and MGLIT business relationships, and promoting an inclusive work culture that firmly opposes harassment and abuse. • Implementing measures to address and correct any known human rights impacts resulting from on-site operations. • Safeguarding the rights of all workers, banning forced or unpaid labour, child labour, slavery (including modern forms), and work conducted under precarious or degrading conditions, and refrain from conducting business with suppliers associated with such practices. • Maintaining focus on identifying situations with high potential for insecurity and defining adequate control, protection, and support barriers to prevent or eliminate situations with risk potential. See our policies attached for more details on our specific policy commitments. |
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|
ESG Policy Human Rights Policy |
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| What are (if any) the internationally recognized human rights that the commitment covers |
The references used for the creation of our Human Rights Policy and ESG Policy are... 1. UN International Bill of Human Rights - Universal Declaration of Human Rights; 2. International Covenant on Civil and Political Rights; 3. International Covenant on Economic, Social and Cultural Rights; 4. UN – Guiding Principles on Business and Human Rights; 5. Voluntary Principles for Human Rights and Security; Human Rights Policy; 6. ILO -Fundamental Conventions of the International Labor Organization (Conventions 29, 87, 98, 100, 105, 111, 138 and 182); 7. IFC (International Finance Corporation) Performance Standards; 8. GRI – Global Reporting Initiative (GRI Standards Guidelines); 9. Canadian Human Rights Act; 10. Canadian Charter of Rights and Freedoms; 11. Labor Standards and Occupational Safety and Health; 12. UN Basic Principles on the Use of Force and Firearms; 13. IRMA Standard for Responsible Mining; |
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| What are the categories of stakeholders, including at-risk or vulnerable groups, that the organization gives particular attention to in the commitment |
Our policies pay particular attention to our workforce, including those indirectly employed through third-party contractual relationships, as well as the human rights and freedoms of the local communities near our projects. |
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| Provide links to the policy commitments, if publicly available, or, if the policy commitments are not publicly available, explain the reason for this | Please see policies attached | ||||||||||||||||
|
Code of Business Conduct and Ethics Audit Committee Charter Anti-Bribery Policy ESG Policy Human Rights Policy Diversity and Inclusion Policy |
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| Report the level at which each policy commitment was approved within the organization, including whether this is the most senior level |
All policies were approved by the highest level of leadership at Lithium Ionic. |
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| To what extent the policy commitments apply to the organization’s activities and to its business relationships |
All of our policy commitments apply to all Lithium Ionic and its subsidiaries, including senior management, board members, directors, employees, contractors, and service providers. |
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| Describe how the policy commitments are communicated to employees, business partners, and other relevant parties |
All our policy commitments are publicly available on our website and serve as key components of our ESG programming, regularly communicated to relevant stakeholders. New employees are required to read, acknowledge, and sign essential policies, including the Audit Committee Charter, Code of Business Conduct and Ethics, Corporate Disclosure, Confidentiality and Insider Trading Policy, Whistleblower Policy, and Anti-Bribery Policy. In 2024, following the release of our new ESG policies, a one-page summary was distributed to employees, detailing the policies and providing access instructions. For those without online access, a dedicated training session was conducted to ensure proper alignment and clear communication. |
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| Embedding policy commitments | |||||||||||||||||
| Describe how the organization embeds each of its policy commitments for responsible business conduct throughout its activities and business relationships | |||||||||||||||||
| How are responsibilities allocated in order to implement the commitments across different levels within the organization |
All of our policies apply to all employees, officers, directors, and in some cases suppliers, outlining expectations and responsible business conduct requirements for all those associated with Lithium Ionic. |
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| How are the commitments integrated into organizational strategies, operational policies, and operational procedures |
Our policy commitments comprehensively governs all facets of company operations, addressing key areas such as the workplace environment, third-party relationships, legal compliance, information and records, company assets, human rights, diversity and inclusion, and environmental governance. These policies serve as a guiding framework to ensure adherence to ethical standards and responsible conduct across diverse aspects of the organization. |
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| How does the organization implement its commitments with and through its business relationships |
The Business Code of Conduct and Ethics, along with our other ESG policies, applies to all third-party relationships, including supplier and contractor engagements, public relations, business dealings, and interactions with government entities. Service provision contracts also contain a general clause mandating compliance with Brazilian labour laws, explicitly prohibiting practices such as child labour and slave labour. Furthermore, our Operational Safety Technician ensures adherence to our business relationship standards by requiring service providers to submit a comprehensive set of occupational safety documents. |
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| What implementation training does the organization provide |
Lithium Ionic does not currently provide formal implementation training for its policies. However, employees with questions or seeking clarification are encouraged to consult senior management or the board of directors. As part of the rollout of our 2024 policies, a summary guide was distributed to employees, highlighting key guidelines and requirements. This proactive approach ensures employees have the resources and support needed to fully understand and comply with the company’s policies. |
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| Governance structure and composition | |||||||||||||||||
| Describe the composition of the highest governance body and its committees by: | |||||||||||||||||
| Number of executive members (non-independent) | 4 | ||||||||||||||||
| Number of non-executive members (non-independent) | 0 | ||||||||||||||||
| Number of independent members | 4 | ||||||||||||||||
| Percentage of independent board members | 50.0000% | ||||||||||||||||
| Less than 3 years of tenure of members on the governance body | 8 | ||||||||||||||||
| 3-6 years of tenure of members on the governance body | 0 | ||||||||||||||||
| 6-9 years of tenure of members on the governance body | 0 | ||||||||||||||||
| More than 10 years of tenure of members on the governance body | 0 | ||||||||||||||||
| Number of other significant positions and commitments held by each member, and the nature of the commitments |
For a full description of each board member see attached link: |
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| Board of Directors | |||||||||||||||||
| Number of Male governance body members | 7 | ||||||||||||||||
| Number of Female governance body members | 1 | ||||||||||||||||
| Number of members from under-represented social groups | 0 | ||||||||||||||||
|
While our current board composition lacks visible minorities or members from under- represented social groups, we are committed to enhancing diversity and inclusion within our company, as seen in our Diversity and Inclusion Policy attached. Diversity and Inclusion Policy |
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| Description of competencies relating to economic, environmental, and social topics |
A description of each board member's experience and expertise can be found in the company description. See attached link |
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| Board of Directors | |||||||||||||||||
| Description of stakeholder representation, including employees and other workers |
Our board comprises both independent and non-independent members who are committed to fostering responsible governance and aligning with stakeholder interests. While employees and other workers are not directly represented on the board, their perspectives are considered through regular engagement with senior management, who convey key feedback and concerns to the board. |
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| Highest Governance Body | |||||||||||||||||
| Describe the nomination and selection processes for the highest governance body and its committees |
The Board currently comprises eight directors, and their terms will conclude upon the election of a new Board at the Meeting. If elected, each director will serve until the next annual general meeting or until a successor is chosen, unless they resign or the position becomes vacant. The election of directors requires a majority of votes at the Meeting. Common Shares represented by proxies supporting Management nominees will be voted in favor unless specified otherwise in the proxies. |
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| Do you have a diversity policy and if so, provide details, link to the policy or attach the file |
In 2024, Lithium Ionic introduced a Diversity and Inclusion Policy alongside embedding diversity commitments within its ESG Policy. The Diversity and Inclusion Policy delineates our commitments to gender inclusion and supporting minority and vulnerable groups within our operations. Lithium Ionic's Diversity and Inclusion Policy represents our commitment to fostering a workplace environment that values and celebrates diversity in all its forms. Please find both policies attached below. |
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|
Diversity and Inclusion Policy ESG Policy |
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| Report the criteria used for nominating and selecting highest governance body members | |||||||||||||||||
| Discuss whether and how views of the stakeholders (including shareholders) are involved |
The Board holds sole responsibility for identifying new candidates for nomination. Candidates are sourced through recommendations presented to the Board, which evaluates their qualifications in accordance with corporate law, regulatory mandates, and pertinent education and experience relevant to the Corporation's operations. |
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| Discuss whether and how diversity is considered |
Our 2024 Diversity and Inclusion Policy delineates our commitments and the framework for considering diversity within our organization. It outlines specific goals aimed at enhancing the diversity of our team, reflecting our dedication to fostering an inclusive workplace culture. |
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| Discuss whether and how independence is considered |
Our board consists of both independent and non-independent members. However, Lithium Ionic adheres strictly to an Anti-Bribery Policy and Code of Business Conduct and Ethics. These policies underscore our commitment to ensuring conflict-of-interest-free decision- making processes. |
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| Discuss whether and how competencies relevant to the impacts of the organization are considered |
Board members' competencies relevant to the impacts of the organization are considered by evaluating their expertise in areas crucial to understanding and addressing those impacts. Ensuring that board members possess these competencies enables effective oversight and strategic decision-making aligned with the organization's goals and commitments. |
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| Chair of the highest governance body | |||||||||||||||||
| Is the chair of the highest governance body also a senior executive in the organization (non-independent) | Yes | ||||||||||||||||
| If the chair is also a senior executive, explain their function within the organization’s management, the reasons for this arrangement, and how conflicts of interest are prevented and mitigated |
As outlined in the Code of Business Conduct and Ethics, Lithium Ionic has instituted rigorous guidelines and regulations to prevent and protect against conflicts of interest. The Code requires that employees, officers, and directors of the Corporation maintain honesty and integrity, avoiding any relationships or engagements that may create, or appear to create, a conflict between their personal interests and the interests of the Corporation. |
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| Conflicts of Interest | |||||||||||||||||
| Describe the processes for the highest governance body to ensure that conflicts of interest are prevented and mitigated |
The Code of Business Conduct and Ethics features a dedicated section addressing conflicts of interest, providing measures to prevent and mitigate any potential current or future conflicts. Additionally, an Anti-Bribery Policy has been implemented to specifically prevent corruption and acts of self-interest. In a commitment to transparency and independent judgment, the Board takes specific actions. This involves holding in-camera sessions with independent directors when necessary and requiring each director to declare their interest in a particular transaction. Directors are expected to abstain from voting on matters where their personal interest is involved, reinforcing the commitment to ethical governance and avoiding potential conflicts of interest. |
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| Are conflicts of interest disclosed to stakeholders | No | ||||||||||||||||
| Are there conflicts of interest related to: cross-board membership | No | ||||||||||||||||
| Are there conflicts of interest related to: cross-shareholding with suppliers and other stakeholders | No | ||||||||||||||||
| Are there conflicts of interest related to: existence of controlling shareholder | No | ||||||||||||||||
| Are there conflicts of interest related to: related parties, their relationships, transactions, and outstanding balances | No | ||||||||||||||||
| Collective knowledge of highest governance body | |||||||||||||||||
| Report measures taken to advance the collective knowledge, skills and experience of the highest governance body on sustainable development. (e.g. board training) |
The Board ensures new directors undergo an orientation education program covering duties, the Corporation's business, and recent Board meeting documents. Opportunities for meetings with senior management and other directors are also provided. Highlighting the ongoing importance of director education, the Board emphasizes each director's personal responsibility. Valuing members' experience in navigating evolving governance principles, the Board commits to leveraging their expertise for insights and fostering continuous improvements, especially in sustainable development |
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| Evaluation of Highest Governance Body | |||||||||||||||||
| Describe actions taken in response to the evaluations, including changes to the composition of the highest governance body and organizational practices |
The Board and individual directors undergo continuous informal assessments of their effectiveness and contribution. The Chairman encourages discussions within the Board for evaluating both the overall effectiveness of the Board and the performance of each director. All directors are encouraged to share suggestions for improving the Board's practices at any time. |
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| Transparency | |||||||||||||||||
| Describe the role of the highest governance body and of senior executives in developing, approving and updating the organization’s purpose, value or mission statements, strategies, policies and goals related to sustainable development |
Lithium Ionic is guided by a set of core values - safety, integrity, responsibility, accountability, and excellence. These principles not only shape the current operational framework but also play a crucial role in formulating future policies related to sustainable development. By embedding these values in all aspects of its operations, the company remains dedicated to a foundation of ethical and responsible business practices. |
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| Describe the role of the highest governance body in overseeing the organization’s due diligence and other processes to identify and manage the organization’s impacts on the economy, environment and people |
Senior management at Lithium Ionic maintains regular communication with both on-site and corporate-level employees to ensure compliance with all relevant regulations. Additionally, senior management conducts site visits to verify that operations are conducted safely and in adherence to all required laws and frameworks. |
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| Describe whether and how the highest governance body engages with stakeholders to support these processes |
The Corporation has adopted a Majority Voting Policy, providing a meaningful mechanism for shareholders to hold individual directors accountable. This policy requires the Corporation to review directors who fail to secure the support of a majority of shareholders. As per the policy, proxies for director elections enable shareholders to express their votes individually for or against each director nominee. If a director nominee receives more votes against them than in favor, they will not be considered to have obtained shareholder support. |
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| Describe how the highest governance body considers the outcomes of these processes |
The Corporation has adopted a Majority Voting Policy, providing a meaningful mechanism for shareholders to hold individual directors accountable. This policy requires the Corporation to review directors who fail to secure the support of a majority of shareholders. As per the policy, proxies for director elections enable shareholders to express their votes individually for or against each director nominee. If a director nominee receives more votes against them than in favor, they will not be considered to have obtained shareholder support. |
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| Ethics | |||||||||||||||||
| Ethics and Integrity | |||||||||||||||||
| Describe how individuals can seek advice on implementing the organization’s policies and practices for responsible business conduct |
Individuals seeking advice on implementing the organization's policies and practices for responsible business conduct can seek guidance from the CEO, President, COO, CFO, or Corporate Secretary. |
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| Describe the mechanisms for individuals to raise concerns about the organization’s business conduct |
Individuals can raise concerns about the organization’s business conduct through multiple mechanisms designed to ensure accessibility and transparency. Our third-party community consultant group, Integratio, will be implementing a community grievance mechanism, which will provide an independent and confidential channel for stakeholders to report concerns related to our operations. This system ensures impartial handling of grievances and timely resolution. Internally, employees can raise concerns during the Daily Safety Dialogue, a routine forum that fosters open communication and encourages the discussion of safety, ethical, and operational matters. Additionally, our Whistleblower Policy provides a secure and confidential avenue for employees and stakeholders to report concerns related to health, safety, ethical practices, or any other operational issues, ensuring these are addressed promptly and transparently. |
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| Compliance with laws and regulations | |||||||||||||||||
| Report the total number of significant instances of non-compliance with laws and regulations that occurred during the reporting period and a breakdown of this total by | 1 | ||||||||||||||||
| Number of instances for which fines were incurred | 1 | ||||||||||||||||
| Report the total number of fines for instances of non-compliance with laws and regulations that were paid during the reporting period | 1 | ||||||||||||||||
| Report the monetary value of fines for instances of noncompliance with laws and regulations that were paid during the reporting period ($) | 274,929.77 | ||||||||||||||||
| Total number of fines paid for instances of non-compliance with laws and regulations that occurred in the current reporting period | 1 | ||||||||||||||||
| Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period ($) | 274,929.77 | ||||||||||||||||
| BRL: R$ | |||||||||||||||||
| Total number of fines paid for instances of non-compliance with laws and regulations that occurred in previous reporting periods | 0 | ||||||||||||||||
| Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods ($Million) | 0 | ||||||||||||||||
| Describe the significant instances of non-compliance |
During our recent exploration program, a fine was issued for the unauthorized suppression of 5.9239 hectares of vegetation at our drilling sites. Based on the area's historical use as pastureland and its altered land conditions, we initially believed a suppression license was not required; however, further review clarified that clearance licensing was required. While this oversight involved land already showing signs of natural regeneration, we are taking proactive measures to ensure compliance, including conducting forest inventories, paying environmental compensation fees, and initiating restoration efforts to regenerate native vegetation. Additionally, our teams have been briefed on regulatory requirements, and we are updating our internal review and approval processes to prevent similar issues in the future. |
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| Describe the management system and due diligence procedures for assessing and managing corruption and bribery risks internally and associated with business partners in its value chain |
Lithium Ionic has implemented a comprehensive Anti-Bribery policy, affirming a steadfast commitment to comply with all anti- bribery and anti-corruption laws in every jurisdiction where the company operates or has a presence. The policy prohibits all directors, officers, employees, and external parties acting directly or indirectly on behalf of the company from engaging in bribery or any corrupt activity, whether in connection with government officials or private parties, as well as from enabling or facilitating such activities. |
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| Anti-Corruption | |||||||||||||||||
| Confirmed Incidents and Response | |||||||||||||||||
| Total number and nature of confirmed incidents of corruption | 0 | ||||||||||||||||
| Total number of Bribery cases | 0 | ||||||||||||||||
| Total number of Lobbying cases | 0 | ||||||||||||||||
| Total number of Extortion cases | 0 | ||||||||||||||||
| Total number of Cronyism cases | 0 | ||||||||||||||||
| Total number of Nepotism cases | 0 | ||||||||||||||||
| Total number of Parochialism cases | 0 | ||||||||||||||||
| Total number of Patronage cases | 0 | ||||||||||||||||
| Total number of Influence peddling cases | 0 | ||||||||||||||||
| Total number of Graft cases | 0 | ||||||||||||||||
| Total number of Embezzlement cases | 0 | ||||||||||||||||
| Total number of confirmed incidents in which employees were dismissed or disciplined for corruption | 0 | ||||||||||||||||
| Total number of contracts terminated or not renewed with business partners due to corruption related violations | 0 | ||||||||||||||||
| Communication and Training | |||||||||||||||||
| Total number of governance body members that the organization's anti-corruption policies and procedures have been communicated to | 8 | ||||||||||||||||
|
Our Anti-Bribery Policy and Code of Business Conduct and Ethics apply to all members within our organization, including those comprising the governance body. Members of our board are fully briefed on these policies and are obligated to uphold the principles outlined therein. |
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| Total percentage of governance body members that have been communicated to on anti-corruption | 100.0000% | ||||||||||||||||
| Communication of critical concerns | |||||||||||||||||
| Describe whether and how critical concerns are communicated to the highest governance body |
Critical concerns can be expressed directly to senior management or through the use of the Daily Safety Dialogue. In Q1 2025, our third- party community consultant group will be implementing a community-based grievance mechanism to provide an additional independent and confidential channel for reporting concerns. Furthermore, our Whistleblower Policy offers a secure and anonymous avenue for employees and stakeholders to raise critical concerns related to health, safety, ethics, or operations. From there, critical concerns are communicated to the board of directors through channels facilitated by the CEO, President, COO, CFO, or Corporate Secretary. |
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| Report the number of critical concerns that were communicated to the highest governance body during the reporting period | 0 | ||||||||||||||||
| Report the nature of critical concerns that were communicated to the highest governance body during the reporting period |
No critical concerns were communicated to the highest governance body during the reporting period. |
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| Remuneration | |||||||||||||||||
| Report which of the following remuneration policies apply to the highest governance body and senior executives: | |||||||||||||||||
| Fixed pay | Yes | ||||||||||||||||
| Variable pay | No | ||||||||||||||||
| Performance-based pay | No | ||||||||||||||||
| Equity-based pay | Yes | ||||||||||||||||
|
Equity-based pay is available through stock options. |
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| Bonuses | Yes | ||||||||||||||||
| Deferred and vested shares | No | ||||||||||||||||
| Sign-on bonuses | No | ||||||||||||||||
| Recruitment incentive payments | No | ||||||||||||||||
| Termination payments | Yes | ||||||||||||||||
| Clawbacks | No | ||||||||||||||||
| Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives and all other employees | No | ||||||||||||||||
| Describe how the remuneration policies for members of the highest governance body and senior executives relate to their objectives and performance in relation to the management of the organization’s impacts on the economy, environment and people |
The Corporation's compensation plan for officers and consultants is designed to align with organizational goals, motivating individuals to meet or exceed corporate objectives and boost shareholder value. Executive compensation includes base salary, additional benefits, and long-term incentives like stock options. The actual compensation considers various factors, aiming for a balanced approach. It is set to be competitive in the market and reflects the responsibilities of each position, ensuring internal equity. |
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| Describe the process for designing its remuneration policies and for determining remuneration |
The Board is responsible for deciding the compensation for the Corporation's directors and regularly reviews this compensation throughout the year. Directors who are not Named Executive Officers may receive stock options under the Stock Option Plan for their directorial role. No additional arrangements exist for compensating these directors for their services as directors of the Corporation or its subsidiaries during the most recently completed financial year end. |
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| Are independent members of the highest governance body or an independent remuneration committee overseeing the remuneration process | Yes | ||||||||||||||||
| Describe whether remuneration consultants are involved in determining remuneration and, if so, whether they are independent of the organization, its highest governance body and senior executives | Independent Consultants | ||||||||||||||||
| Stakeholder Engagement | |||||||||||||||||
| Report the organization’s approach to stakeholder engagement, including frequency of engagement by type |
In Q1 2024, we conducted our first external and internal materiality assessment, identifying the most critical topics for our organization. Using stakeholder input, we developed a Materiality Matrix that guided the creation of our ESG Policies, ensuring our operations address community priorities and align with industry best practices. Additionally, we held an information session for the Barreiro Community, sharing project details and addressing questions and concerns. In Q3 2024, we engaged a specialized community consultancy to strengthen stakeholder engagement with communities directly impacted by our operations. Over six months, the consultants will conduct two consultations per community to ensure their voices and concerns are integrated into our decision-making. In Q1 2025, they will implement a grievance mechanism for continuous feedback and issue resolution. The consultancy also conducted a participatory community diagnosis survey and led social engagement initiatives within the Barreiro and Fazenda Velha communities. Building on these efforts, Integratio developed the framework for an Environmental Education Plan (PEA) and a Social Communication and Engagement Plan, tailored to address the specific needs of communities directly affected by the Bandeira Project. This comprehensive and proactive approach demonstrates our commitment to fostering trust, strengthening relationships, and aligning our projects with the long-term interests of the communities we serve. |
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| Provide a list of stakeholder groups engaged by the organization |
• Permanent or Full-time Employees • Local communities • Local government bodies • Regulatory authorities • Suppliers and contractors • Consultants (professional services) |
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| Report the basis for identifying and selecting stakeholders with whom to engage |
Stakeholder identification was a critical component of our 2024 materiality assessment. We identified key external stakeholders within the communities directly impacted by our operations in Brazil, recognizing their input as essential to defining our ESG material topics. Our on-site team evaluated and prioritized stakeholders, conducting outreach efforts to gather valuable insights. For the Bandeira project, a third-party consultant carried out a diagnostic stakeholder mapping survey for the Directly Affected Communities. Similarly, as part of the Socioeconomic Diagnosis for the Salinas project, a comprehensive stakeholder mapping process was conducted. These initiatives provided a detailed understanding of all relevant stakeholders, ensuring their perspectives are integrated into our project development. |
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| Report the purpose of the stakeholder engagement |
The purpose of our materiality assessment was to establish which topics were most important to our internal and external stakeholders so we could ensure these topics were encompassed in our future ESG programming. Moving forward, Lithium Ionic has hired a third party consultant to oversee ongoing stakeholder engagement with the local communities. Through these interactions, we aim to gain a deeper understanding of their perspectives and concerns. This valuable insight is then incorporated into our decision- making processes and future programming. This approach is a key element of our corporate strategy, facilitating the alignment of our operations with the community's needs and expectations and fostering a stronger and more mutually beneficial relationship between our operations and the local community. |
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| Tax | |||||||||||||||||
| Describe the approach to stakeholder engagement and management of stakeholder concerns related to tax, including | |||||||||||||||||
| The approach to engagement with tax authorities |
Lithium Ionic receives third-party expertise on tax-related issues and ensure full compliance with tax obligations. |
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| The approach to public policy advocacy on tax |
Lithium Ionic does not currently have any approach to public policy advocacy on tax nor do we contribute any political donations in any country of operation. |
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| The processes for collecting and considering the views and concerns of stakeholders, including external stakeholders |
Lithium Ionic frequently engages with stakeholders and addresses concerns as they are mentioned. |
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