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Published on August 29, 2023 |
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Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as successful capital markets track record. Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy.
Our mission is to develop and operate mines efficiently and in a responsible manner with a proven experienced team while promoting a culture of integration and collaboration with all our stakeholders.
Our purpose is to inspire others by demonstrating that we can overcome all the challenges the mining sector presents us with innovation, inclusion and empathy with the objective of improving the quality of life for everyone involved. |
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Disclaimer and Forward Looking Statements |
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Company Profile |
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Organizational Profile |
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Name |
RIO2 Limited |
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Describe nature of activities, brands, products and services |
Rio2 is a mining company with a focus on development and mining operations with a team that has proven technical skills as well as successful capital markets track record. |
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Rio2 is focused on taking its Fenix Gold Project in Chile to production in the shortest possible timeframe based on a staged development strategy.
Rio2 and its wholly owned subsidiary, Fenix Gold Limitada, are companies with the highest environmental standards and responsibility with the firm conviction that it is possible to develop mining projects that respect the three axes (Social, Environment, and Economics) of sustainable development.
As related companies, we reaffirm our commitment to apply environmental standards beyond those that are mandated by regulators, seeking to protect and preserve the environment of the territories that we operate in. |
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Link to Corporate Website |
https://www.rio2.com/ |
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Industry Classification |
NAICS: 21222 Gold and silver ore mining |
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Market Capitalization |
$0-$100Million USD |
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Type of Operations |
Exclusively non-producing operations |
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Company Headquarters |
Vancouver, Canada |
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ESG Accountability |
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Role and Name of highest authority within company for Environment, Social and Governance strategy, programs and performance |
Alex Black, Executive Chairman of the Board |
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ESG Reporting Period |
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Unless otherwise noted, all data contained in this report covers the following period |
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From |
2022-01-01 |
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To |
2022-12-31 |
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Audit Status |
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Identify the degree to which any inputs of the report are third-party checked |
Self-Declared |
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Financial Reporting Period |
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Specify the frequency of sustainability reporting |
Annually |
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Whether Financial reporting period aligns with the period for its sustainability reporting |
Yes |
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Specify the contact point for questions about the report or reported information |
Alejandra Gomez at alejandra.gomez@rio2.com |
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Geographic Scope of Report |
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Unless otherwise noted, the data in this report covers ESG matters related to the following countries of operations |
Chile |
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Identify notable exclusions, and reference 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.) |
There are no geographic or operational exclusions in this report. |
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Fragile and Conflict-Affected Situations |
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Identify all of the entity's countries of operations that align with the World Bank's list of "Fragile and Conflict-Affected Situations" |
None |
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Business Operations Scope of Report |
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Identify notable exclusions, and reference 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.) |
This report applies to all company operations. |
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Mineral Resource Types in Scope |
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Which of the following mineral resource types are covered by this report |
• Inferred • Indicated • Measured |
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Mineral Reserve Types in Scope |
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Which of the following mineral reserve types are covered by this report |
• Proven • Probable |
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Currency |
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Unless otherwise noted, all financial figures referenced in this report are in the following currency |
USD |
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Organizational Profile |
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Provide a list of externally-developed economic, environmental and social charters, principles, or other initiatives to which the organization subscribes, or which it endorses, e.g., GRI, UN Global Compact |
In this report, we are aligning with the following ESG standards: • CDP - Carbon Disclosure Project • GRI - Global Reporting Initiative • Global Reporting Initiative - Mining and Metals Supplement • ICMM - The International Council on Mining and Metals • ONYEN - Institutional and Investor Questions • SASB - Sustainability Accounting Standards Board • UGC - UN Global Compact |
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Strategy |
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Provide a description of key impacts, risks, and opportunities, |
Among the most important risks for the Fenix, Gold Project are physical risks derived from climate change including water shortages for processes and projects, and damage to infrastructure or operational delays due to extreme weather events. |
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Please see attached for additional information on potential risks and a description of our risk management approach. |
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Rio2 2022 Risk Management |
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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 for contributing to sustainable development. (CEO's message for this report) |
We are focused on carrying out mining activities responsibly and respectfully. We have made our commitment to the environment and community engagement an integral part of our strategy. |
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Alex Black, Executive Chairman of the Board |
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Policy commitments |
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Provide a description of the organization’s policy commitments for responsible business conduct |
Rio2 Limited and its subsidiaries are committed to conducting business with integrity in accordance with the highest ethical and moral standards and in compliance with all applicable laws, rules, and regulations. The Company has issued a Code of Business Conduct and Ethics to promote: honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; avoidance of conflicts of interest, including disclosure to an appropriate person of any material transaction or relationship that reasonably could be expected to give rise to such a conflict; confidentiality of corporate information; protection and proper use of corporate assets and opportunities; compliance with applicable governmental laws, rules, and regulations; the prompt internal reporting of any violations of this Code to an appropriate person or person identified in this Code; and accountability for adherence to this Code. |
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Rio2 Limited Code of Business Conduct and Ethics |
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What are (if any) the authoritative intergovernmental instruments that the commitments reference |
Rio2's Code of Business Conduct and Ethics does not rest on any instruments in particular. Still, it states that all employees, directors, and consultants of the Corporation must adhere to the applicable laws and regulations of the areas in which it operates. |
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Do the commitments stipulate conducting due diligence |
Rio2's Code of Business Conduct and Ethics has a Concern Reporting, Investigation, and Resolution section supported by the Company's Whistleblower Policy. |
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Rio2's Code of Business Conduct and Ethics |
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Do the commitments stipulate applying the Precautionary Principle or Approach |
No |
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Do the commitments stipulate respecting human rights |
Yes |
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Describe the specific policy commitment to respect human rights |
The Code states that Rio2's employment decisions will be based on reasons related to our business, such as job performance, individual skills and talents, and other business- related factors. The Corporation policy requires adherence to all national, provincial, or local employment laws. In addition to any other requirements of applicable laws in a particular jurisdiction, the Company's Code prohibits discrimination in any aspect of employment based on race, color, religion, sex, sexual orientation, national origin, disability, or age within the meaning of applicable laws. It also prohibits abusive or harassing conduct by our employees and officers toward others, such as unwelcome sexual advances, comments based on ethnicity, religion, or race, or other non- business, personal remarks or conducts that make others uncomfortable in their employment with us. We encourage and expect employees and associates to report harassment or other inappropriate conduct as soon as it occurs. |
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What are (if any) the internationally recognized human rights that the commitment covers |
* Right to life and personal integrity * Right to work, to fair work conditions, prohibition of slavery and Social Security * Same right to use the law, equality before the law, and the right to be treated fair by the court * Equality and no discrimination * Right to freedom of thought, conscience, and religion * Right to participate in political and public life * Freedom of opinion, expression, and access at the information * Right to private life and privacy * right to a healthy environment |
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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 |
Rio2 wishes to play an active role in promoting and exemplifying respect for human rights. This goal applies to the interests, cultures, customs, and values of our employees and the communities we interact with daily. |
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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 attached Corporate policies for more detail. |
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Anti-Bribery and Anti-Corruption Policy |
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Disclosure and Confidentiality Policy |
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General Privacy 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 Company Codes and Policies have been approved by Rio2's Board of Directors. |
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To what extent the policy commitments apply to the organization’s activities and to its business relationships |
Code and policy commitments have been adopted by our Board of Directors to summarize the standards of business conduct that must guide the actions of all of the directors, officers, and employees of the Corporation. This Code and associated policies apply to all Corporation directors, officers, and employees. This Code also applies to certain contractors. Contractors, including consultants and advisors are expected to conduct themselves in accordance with this Code (or the equivalent of) when dealing with or acting as a representative of the Corporation. |
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Describe how the policy commitments are communicated to workers, business partners, and other relevant parties |
Policy commitments are communicated to employees and communities via our website, on-site and online training, annual policy review and commitment sign-off. All concerns related to human rights or governance are handled through the company Whistleblower or grievance mechanisms.
There is no policy communication for business partners or other relevant parties. |
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Embedding policy commitments |
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Describe how the organization embeds each of its policy commitments for responsible business conduct throughout its activities and business relationships |
Rio2s Board of Directors, the CEO, and the CFO are in charge of overseeing the fulfillment of Rio2's Code of Business and Ethics and associated politics. |
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How are responsibilities allocated in order to implement the commitments across different levels within the organization |
The HR department communicates with all Department leaders on the responsibility vested in their different roles as in policy compliance from their assigned teams. In turn, the CEO reports all concerns and developments to the HSE Committee of the Board.
Accountability is continuously communicated as a response to a failure to comply with the Company policies. |
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How are the commitments integrated into organizational strategies, operational policies, and operational procedures |
The Company holds mandatory meetings where the policies are communicated.
It is expected for all employees to take these policies into consideration when planning or executing their work-related tasks. |
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How does the organization implement its commitments with and through its business relationships |
Contractors are given feedback sessions where behaviour and conduct expectancy from their teams are communicated. |
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What implementation training does the organization provide |
Yearly in-person and online training. |
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Supply Chain |
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Estimated Total number of Business Entities in its downstream |
0 |
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During the reporting period, Rio2 was in the project development phase and, as such, does not have production or customers. |
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Estimated End-Use customers |
0 |
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Types of activities related to the organization’s products and services carried out by the downstream entities (e.g., manufacturing, wholesale, retail); |
The company is currently developing its Fenix Gold Project and has no active operations. |
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The nature of its business relationships with the downstream entities |
See above |
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Report other relevant business relationships |
None to report. |
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Describe significant changes in the information reported about business activities, value chain and other business relationships compared to the previous reporting period |
None to report. |
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Material Topics |
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Governance of Material Topics |
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Describe the process followed to determine the organization's material topics, including: |
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i. How has the organization identified actual and potential, negative and positive impacts on the economy, environment, and people, including impacts on their human rights, across its activities and business relationships; provide details |
• Environmental impact assessment • Social impact assessment • Civil society organizations |
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ii. How has the organization prioritized the impacts for reporting based on their significance |
Materiality has been determined using management's experience in mine project development, and from information obtained from various external consultancy firms at the request of the Company while producing the Environmental Impact Study for the Fenix Gold Project, and public sources. |
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Specify the stakeholders and experts whose views have informed the process of determining its material topics and provide details |
• Civil society organizations • Governments • Local communities • Shareholders and other capital providers |
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List the organization's material topics |
Environmental Assessment |
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In 2022 Rio2 was focused on filing and awaiting the Regional Evaluation Commission's decision on the EIA (Environmental Impact Assessment) for the Fenix Gold Project and did not undertake a formal assessment of its material topics. The Company will undertake such an assessment when reasonable in relation to its stage of development. |
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List the organization's non-material topics |
• Economic Performance • Market Presence • Indirect Economic Impacts • Procurement Practices • Materials • Emissions • Effluents and Waste • Products and Services • Transport • Overall environmental • Supplier • Employment • Labor/Management Relations • Occupational Health and Safety • Training and Education • Diversity and Equal Opportunity • Equal Remuneration for Women and Men • Supplier Assessment for Labor Practices • Labor Practices • Grievance Mechanisms • Human Rights Investment • Non-discrimination • Freedom of Association and Collective Bargaining • Child Labor • Forced or Compulsory Labor • Security Practices • Supplier Human Rights Assessment • Human Rights Grievance Mechanisms • Local Communities • Public Policy • Anti-competitive Behavior • Supplier Assessment for Impacts on Society • Grievance Mechanisms for Impacts on Society • Emergency Preparedness • Artisanal and Small-scale mining • Resettlement • Closure Planning • Customer Health and Safety • Product and Service Labeling • Marketing • Communications • Customer Privacy • Materials Stewardship |
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Provide reason for considering such topics not material, provide details |
Other, please specify |
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Rio2 Limited is currently in the process of developing the Fenix Gold Project in Chile. In 2022, the Project had no production and limited construction activity. |
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Report changes to the list of material topics compared to the previous reporting period |
There have been no changes to the material topics compared to the previous reporting period. |
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Environment |
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General Disclosure |
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Compliance with laws and regulations |
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Report the total number of significant instances of non-compliance with laws and regulations during the reporting period, and a breakdown of this total by: |
0 |
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Number of instances for which fines were incurred |
0 |
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Number of instances for which non-monetary sanctions were incurred |
0 |
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Report the total number of fines for instances of non-compliance with laws and regulations that were paid during the reporting period |
0 |
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Report the monetary value of fines for instances of noncompliance with laws and regulations that were paid during the reporting period ($Million) |
0 |
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Total number of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period |
0 |
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Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period ($Million) |
0 |
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Total number of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods |
0 |
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Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in previous reporting periods |
0 |
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Describe the significant instances of non-compliance |
Rio2 is in compliance with all environmental laws and regulations pertaining to the Fenix Gold Project in Chile. |
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Greenhouse Gas Emissions |
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Scope 1 |
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For your operations, disclose the gross global Scope1 greenhouse gas (GHG) emissions to the atmosphere of the seven GHGs covered under the Kyoto Protocol (tonne CO₂-e) |
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Carbon dioxide (CO₂) (tonne CO₂-e) |
95.931 |
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Methane (CH₄) (tonne CO₂-e) |
0.000 |
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Nitrous oxide (N₂O) (tonne CO₂-e) |
0.000 |
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Hydrofluorocarbon-23 (CHF₃) (tonne CO₂-e) |
0.000 |
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Hydrofluorocarbon-32 (CH₂F₂) (tonne CO₂-e) |
0.000 |
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Sulphur hexafluoride (SF₆) (tonne CO₂-e) |
0.000 |
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Nitrogen trifluoride (NF₃) (tonne CO₂-e) |
0.000 |
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Perfluoromethane (CF₄) (tonne CO₂-e) |
0.000 |
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Perfluoroethane (C₂F₆) (tonne CO₂-e) |
0.000 |
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Perfluorobutane (C₄F₁₀) (tonne CO₂-e) |
0.000 |
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Perfluorohexane (C₆F₁₄) (tonne CO₂-e) |
0.000 |
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The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne) |
95.931 |
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GHG emissions for the 2022 ESG Scorecard are calculated based on estimated fuel and energy consumption. EPA conversion factors were utilized to calculate Scope 1 GHG emissions (CO₂-e) (tonne). |
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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% |
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In 2022, Chile did not implement an emissions- limiting regulation or program. |
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The entity shall discuss its long-term and short-term strategy or plan to manage its Scope 1 greenhouse gas (GHG) emissions |
Rio2 will develop long and short term strategies for Scope 1 emissions during the construction stage and in advance of the operations stage of the Fenix Gold Project. |
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Carbon Offset |
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Credits |
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How much CO₂ (metric tonnes) offset credits were purchased? |
0.000 |
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Air Emissions |
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Report emissions of air pollutants that are released into the atmosphere |
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Emissions of carbon monoxide, reported as CO (tonne) |
0.000 |
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Rio2 Limited will begin its air emissions monitoring program after the approval of its Environmental Impact Assessment by government authorities as it enters the construction phase of the Fenix Project. |
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Emissions of oxides of nitrogen (NOx), reported as NOx (tonne) |
0.000 |
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Emissions of oxides of sulphur (SOx), reported as SOx (tonne) |
0.000 |
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Emissions of Particulate Matter 10 micrometres or less in diameter (PM₁₀), reported as PM₁₀ (tonne) |
0.000 |
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Emissions of lead and lead compounds, reported as Pb (tonne) |
0.000 |
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Emissions of mercury and mercury compounds, reported as Hg (tonne) |
0.000 |
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Emissions of non-methane Volatile Organic Compounds (VOCs) (tonne) |
0.000 |
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Energy Management |
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Total energy consumed in aggregate, in gigajoules (GJ) (hydrocarbons and electricity) including the fuel types used (e.g., biomass, hydro-electric power or bioenergy) |
1,908.000 |
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Percentage energy consumed that was supplied by grid electricity |
25.3815% |
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Percentage of energy consumed that is renewable energy |
25.3815% |
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Water |
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Efficiency |
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Proportion of water reused and recycled by the site to reduce the overall consumptive water demand |
0.0000% |
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Water Management |
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Disclose the amount of water that was withdrawn from freshwater sources (in thousands of cubic meters) |
3.640 |
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Volume extracted from the Can Can well. |
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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 |
26.9231% |
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The Chilean province of Copiapó was declared a water scarcity zone during six of the twelve reported months. Rio2 is using fresh water while developing its Fenix Gold Project but plans to operate the Fenix Gold mine using treated industrial water. |
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Disclose water withdrawn in locations with High or Extremely High Baseline Water Stress (in thousands of cubic meters) |
0.980 |
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In November 2021, the Ministry of Public Works (MOP) declared a water shortage for the province of Copiapó, for a period of 6 months, until the end of April 2022, through Resolution M.O.P. No. 223 dated November 5, 2021.
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Disclose freshwater consumed in locations with High or Extremely High Baseline Water Stress as a percentage of the total water consumed |
26.9231% |
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Disclose the amount of water that was consumed in its operations (in thousands of cubic meters) |
3.640 |
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The amount of water consumed in the project was 1.9 megaliters approximately extracted from the Can Can well (natural source) and 1.74 megaliters was water purchased from authorized sources in the province of Copiapó. |
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Total water consumed in locations with high or extremely high baseline water stress (in thousands of cubic meters) |
0.980 |
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Was your organization subject to any fines, enforcement orders, and/or other penalties for water-related regulatory violations |
No |
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Total number of instances of non-compliance, including violations of a technology-based standard and exceedances of quality-based standards |
0 |
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Waste Management |
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Disclose the total weight of tailings produced (tonne) |
0.000 |
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The Fenix Gold Project is currently in development and does not use substances of concern. In compliance with corporate standards and (international standards), mitigation plans will be developed to ensure the safe handling of hazardous substances once operations begin. Moreover, as per its design, the Fenix Gold Project will not generate tailings waste. |
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Tailings Storage Facilities Management |
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Does your company manage Tailings Storage Facilities |
No |
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The Fenix Gold project is in the process of obtaining its environmental certification; however when in production the Project will not generate tailings. . |
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Innovation |
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Spending on Research, Development, and Technologies for waste management compliance and improvement |
0 |
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Describe nature of spending on Research, Development and Technologies for waste management compliance and improvement |
In 2022 Rio2 was focused on filing an administrative appeal before the Ministries Committee to appeal the Atacama Regional Evaluation Commission’s decision not to approve the Environmental Impact Assessment (“EIA”) for its Fenix Gold Project in Chile, and, therefore, waste management was not a material issue for operations. A formal plan will be developed once a favourable response to the EIA is obtained and Fenix Gold Project enters its construction phase.
Currently, we have appropriate on-site processes as required by Chilean legislation. |
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Biodiversity |
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Management Plan |
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List the environmental and biodiversity management plan(s) implemented at active sites |
Rio2's biodiversity management plans are disclosed in the Fenix Gold's EIA file, which is currently undergoing an administrative appeal process. Once the authority resolves this administrative process and the EIA is approved, Rio2 will implement biodiversity plans and programs at its Fenix Gold Project. |
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1.1 Mine lifecycle stages to which the plan(s) apply |
• Exploration and appraisal • Site development • Production • During closure • Decommissioning |
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1.2 The topics addressed by the plan(s) |
• Discharges to water • Ecological and biodiversity impacts • Natural resource consumption • Noise impacts • Not applicable • Waste generation |
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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) |
The Biodiversity Plan currently under review as part of the EIA has been developed by specialized consultants. The plan and the information included have been prepared in compliance with current regulations, national guidelines, and international standards.
In addition, we have proposed voluntary commitments based on project design and corporate guidelines. |
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Impacts |
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Does access to the site involve traversing a protected area |
No |
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This disclosure includes all relevant national categories and designations as well as internationally recognized protected areas, i.e. areas designated under the World Conservation Union (IUCN) designation I-IV, UNESCO Natural World Heritage Sites, UNESCO Man, and the Biosphere Reserves, and wetlands designated under the Convention on Wetlands of International Importance (the Ramsar Convention). |
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Do any of the entities concessions share a watershed with a protected area |
Yes |
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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 |
Neither the Fenix Gold Project nor any of its facilities cross a protected area.
The Fenix Gold Project is located 3.6 km from the boundary of the Nevado Tres Cruces National Park and the Laguna Santa Rosa Ramsar Site. (See map attached.) |
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A small area (0.82 km2) of the upper part of the Fenix Project is located in the pit sub-basin, which is a contributor basin to the Maricunga National Park and Salar. However, according to the modeling and environmental impact assessment, the potential effects on the protected area are not significant. This negligible impact is associated with the possible decrease in recharge due to specific Project works. The possible reduction in recharge is estimated at 0.20 L/s, corresponding to 2.11% of the total recharge in the sub-basin (9.5 L/s). At the basin level, the Rajos sub-basin belongs to the Salar de Maricunga basin, in which water balances have been carried out by various sources, estimating the recharge of the Salar de Maricunga between approximately 1,200 L/s and 1,600 L/s, for which the possible decrease in recharge due to the Project works located in the Rajos sub-basin represents between 0.013% and 0.017%, at the basin level. Therefore, no risk of reduced water levels is expected, which qualifies as a non-significant impact. |
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Fenix Gold Pit Sub-Basin Catchment |
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Percentage of proved reserves in sites with protected conservation status or in areas of endangered species habitat |
0.0000% |
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Percentage of probable reserves in sites with protected conservation status or in areas of endangered species habitat |
0.0000% |
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Percentage of inferred, indicated and/or measured resources in sites with protected conservation status or in areas of endangered species habitat |
0.0000% |
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Social |
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Scale of the Organization |
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Describe how the organisation defines its "Operation" |
The Fenix Gold Project is in the development phase and is not in operation. |
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Report the total number of operations |
1 |
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Scale of the Organization |
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Report the total number of direct employees worldwide (exclude contractors) |
26 |
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Report the total number of male direct employees worldwide (exclude contractors) |
16 |
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Report the total number of female direct employees worldwide (exclude contractors) |
10 |
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Report the total number of contract employees worldwide |
22 |
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Total number of employees worldwide (include contractors) |
48 |
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Total number of female employees and contractors worldwide |
13 |
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Female employees and contractors as percentage of total employees and contractors |
27.0833% |
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Total number of male employees and contractors worldwide |
35 |
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Male employees and contractors as percentage of total employees and contractors |
72.9167% |
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Total number of non-binary employees and contractors worldwide |
0 |
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Non-binary employees and contractors as percentage of total employees and contractors |
0.0000% |
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Employee Information |
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Report the total number of direct employees by employment type (permanent and temporary), by gender |
26 |
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Total number of permanent employees |
19 |
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Total number of permanent employees - female |
6 |
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Total number of permanent employees - male |
13 |
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Total number of permanent employees - Non-binary |
0 |
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Total number of temporary employees |
7 |
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Total number of temporary employees - female |
4 |
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Total number of temporary employees - male |
3 |
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Total number of temporary employees - Non-binary |
0 |
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Report the total number of non-guaranteed hours employees by gender |
0 |
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Total number of non-guaranteed hours employees - female |
0 |
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Total number of non-guaranteed hours employees - male |
0 |
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Total number of non-guaranteed hours employees - Non-binary |
0 |
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Report the total number of employees by employment type (full-time and part-time), by gender |
26 |
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Report the total number of full-time employees |
26 |
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Report the total number of part-time employees |
10 |
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Total number of full-time employees - female |
10 |
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Total number of part-time employees - female |
0 |
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Total number of full-time employees - male |
16 |
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Total number of part-time employees - male |
0 |
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Total number of full-time employees - Non-binary |
0 |
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Total number of part-time employees - Non-binary |
0 |
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|
Describe the methodologies and assumptions used to compile the data |
The data was compiled from the information of the labor force reports that are updated every month, both from the related companies and from the contractor companies. |
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Are the numbers reported in head count, full-time equivalent (FTE), or using another methodology |
The numbers was reported in head count, to full-time & part time |
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Are the numbers reported at the end of the reporting period, as an average across the reporting period, or using another methodology |
The numbers was reported at the end of the reporting period |
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Provide contextual information necessary to understand the employment information provided |
We had a reduction in personnel because Fenix Gold still needs to obtain the necessary permits to carry out construction activities on the project. |
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Describe significant fluctuations, if any, in the number of employees during the reporting period and between reporting periods |
As of the second semester of the year, there was a progressive decrease in personnel due to the facts disclosed above. |
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Workers who are not employees |
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Report the total number of workers who are not employees and whose work is controlled by the organization |
22 |
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Describe the most common types of worker and their contractual relationship with the organization |
The most common type of employment is generally full-time and with a permanent contract. |
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The type of work they perform |
The most common type of worker is those in charge of obtaining the permits to start the project's construction. |
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Report the total number of contractors by employment type (permanent and temporary), by gender |
22 |
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Total number of permanent contractors |
0 |
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Total number of permanent contractors - female |
0 |
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Total number of permanent contractors - male |
0 |
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Total number of permanent contractors - Non-binary |
0 |
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Total number of permanent contractors - Gender not disclosed |
0 |
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Total number of temporary contractors |
22 |
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Total number of temporary contractors - female |
3 |
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Total number of temporary contractors - male |
19 |
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Total number of temporary contractors - Non-binary |
0 |
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Total number of temporary contractors - Gender not disclosed |
0 |
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Report the total number of contractors by employment type (full-time and part-time), by gender |
22 |
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Total number of full-time contractors - female |
2 |
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Total number of part-time contractors - female |
1 |
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Total number of full-time contractors - male |
10 |
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Total number of part-time contractors - male |
9 |
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Total number of full-time contractors - Non-binary |
0 |
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Total number of part-time contractors - Non-binary |
0 |
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Describe the methodologies and assumptions used to compile the information about workers who are not employees. |
The workers employed by the company are all employees, either directly or from contractors. |
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Is the number of workers who are not employees reported in head count, full-time equivalent (FTE), or using another methodology |
No non-employee workers were reported, since all the people who work for the company are paid and have been formally hired, either directly or by contractors. |
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Is the number of workers who are not employees reported at the end of the reporting period, as an average across the reporting period, or using another methodology |
All workers have been reported at the end of the reporting period. |
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Describe significant fluctuations, if any, in the number of workers who are not employees during the reporting period and between reporting periods |
As of the year's second half, there was a progressive decrease in the number of personnel due to the rejection of the Environmental Impact Assessment (“EIA”) for the Fenix Gold Project in Chile. |
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Turnover |
|
|
Report the total number and rate of employee turnover during the reporting period, by age group, and gender |
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All Employees |
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Total number of turnover (the number that left during the period) |
60 |
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Rate of turnover |
76.9231% |
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Female employees |
|
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Total number of turnover (the number of females that left during the period) |
12 |
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Rate of turnover, females |
77.4194% |
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Male employees |
|
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Total number of turnover (the number of males that left during the period) |
48 |
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Rate of turnover, males |
76.8000% |
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Non-binary employees |
|
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Total number of turnover (the number non-binary that left during the period) |
0 |
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Rate of turnover, non-binary |
Does Not Apply |
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Turnover & Age Breakdown |
|
|
Employees aged 30 years old and under |
|
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Total number of turnover (the number that left during the period) |
5 |
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As percent of total employees |
4.1667% |
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Rate of turnover |
100.0000% |
|
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Employees aged between 30 and 50 years old |
|
|
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|
|
|
|
|
Total number of turnover (the number that left during the period) |
42 |
|
|
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|
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|
|
|
|
|
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|
As percent of total employees |
75.0000% |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate of turnover |
84.0000% |
|
|
|
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|
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|
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|
|
|
|
|
|
|
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|
|
Employees over 50 years old |
|
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
Total number of turnover (the number that left during the period) |
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As percent of total employees |
20.8333% |
|
|
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|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
Rate of turnover |
56.5217% |
|
|
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|
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|
|
Identify types of employees captured in the turnover rate calculations |
Direct-hire temporary workers (temporary workers who are on the company payroll) |
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|
Average age of employees |
45 |
|
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|
|
Diversity and Equal Opportunity |
|
|
Report the percentage of employees per employee category in each of the following diversity categories |
|
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|
Board of Directors |
|
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Total Board of Directors |
7 |
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|
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|
|
|
Percent Male |
100.0000% |
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Female |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Non-Binary |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
0.0000% |
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
100.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Senior Management |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Senior Managers |
3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Male |
66.6667% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Female |
33.3333% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Non-Binary |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
33.3333% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
66.6667% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaried (excluding Senior Management) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Salaried (excluding Senior Management) |
8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Male |
50.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Female |
50.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Non-Binary |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
62.5000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
37.5000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Technical Employees (skilled hourly) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Technical Employees |
11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Male |
63.6364% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Female |
36.3636% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent Non-Binary |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent under 30 years of age |
0.0000% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent between 30 and 50 years of age |
81.8182% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percent over 50 years of age |
18.1818% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Production Employees (unskilled hourly) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Production Employees |
4 |
|
|
|
|
|
|
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Percent Male |
75.0000% |
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Percent Female |
25.0000% |
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Percent Non-Binary |
0.0000% |
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Percent under 30 years of age |
0.0000% |
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|
Percent between 30 and 50 years of age |
25.0000% |
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Percent over 50 years of age |
75.0000% |
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Contractors: |
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Total Contractors |
22 |
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Percent Male |
86.3636% |
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Percent Female |
13.6364% |
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Percent Non-Binary |
0.0000% |
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|
Percent under 30 years of age |
4.5455% |
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|
Percent between 30 and 50 years of age |
77.2727% |
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Percent over 50 years of age |
18.1818% |
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Labour Relations |
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Collective Bargaining Agreements |
|
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Percentage of total direct employees covered by collective bargaining agreements |
0.0000% |
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|
Rio2 Limited does not have Collective Bargaining Agreements. |
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For 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 |
The organization determines the working conditions and terms of employment for all workers since there is no collective bargaining. |
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Notice Periods |
|
|
Minimum number of weeks’ notice typically provided to employees and their representatives prior to the implementation of significant operational changes that could substantially affect them |
6 weeks |
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|
Occupational Health and Safety |
|
|
Work-related Injuries |
|
|
Injuries - For all employees |
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|
i. Number of fatalities as a result of work-related injury |
0 |
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|
|
i. Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours worked |
0.000 |
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|
|
ii. Number of high-consequence work-related injuries (excluding fatalities) |
0 |
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|
|
ii. Rate of high-consequence work-related injuries (excluding fatalities) |
0.000 |
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|
|
iii. Number of recordable work-related injuries |
0 |
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|
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iii. Rate of recordable work-related injuries |
0.000 |
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iv. Main types of work-related injury, e.g., confined space, trips, falls, etc. |
No work-related injuries were recorded for the 2022 calendar year. This applies to employees only. |
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v. Number of hours worked |
114,516 |
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|
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Lost Time Injuries (LTIs) |
0 |
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|
|
Lost Time Injuries Rate (LTIR) |
0.000 |
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In 2022, Rio2 Limited had a 0.00 fatality rate, 0.00 work-related incident rate, and a 0.00 Lost Time Incident rate. |
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|
Injuries - workers who are not employees but whose work and/or workplace is controlled by the organization |
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|
|
|
|
i. Number of fatalities as a result of work-related injury |
0 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
i. Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours |
0.000 |
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|
|
ii. Number of high-consequence work-related injuries (excluding fatalities) |
0 |
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|
|
ii. Rate of high-consequence work-related injuries (excluding fatalities) |
0.000 |
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|
|
iii. Number of recordable work-related injuries |
0 |
|
|
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|
|
|
|
|
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|
|
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|
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|
|
iii. Rate of recordable work-related injuries |
0.000 |
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|
|
iv. Main types of work-related injury, e.g., confined space, trips, falls, etc. |
Contractors may be struck with an object within the campsite, trucks overturning accidents inside the project, material damage, or operational failure. These apply to contractors. |
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|
|
v. Number of hours worked |
137,507 |
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|
|
Lost Time Injuries (LTIs) |
0 |
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|
|
|
|
|
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|
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|
|
|
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|
|
Lost Time Injuries Rate (LTIR) |
0.000 |
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|
|
In 2022, Rio2 Limited had a 0.00 fatality rate, 0.00 work-related incident rate, and a 0.00 Lost Time Incident rate. |
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|
|
Combined (Employees and non-employees, but controlled by the organization): |
|
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|
|
Total number of all work-related injuries |
0 |
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|
Rate of work-related injuries |
0.000 |
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|
Total Lost Time Injuries (LTIs) |
0 |
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|
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|
|
Lost Time Injuries Rate (LTIR) |
0.000 |
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|
Report the work-related hazards that pose a risk of high-consequence injury, including |
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i. How have these hazards been determined |
Rio2 utilizes the OSHAS 18001 methodology to identify high-potential hazards.
For this purpose, Rio2 applies the Iper matrix (HIRA, Hazard Identification, and Risk Assessment in English). This matrix is a management tool that can be used to identify hazards and assess risks associated with the processes of any organization.
This methodology includes: • On-site registration • Induction training • Monitoring and evaluation |
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ii. Which of these hazards have caused or contributed to high-consequence injuries during the reporting period |
In this reporting period, Rio2 did not suffer any high-consequence injuries. |
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iii. Actions taken or underway to eliminate these hazards and minimize risks using the hierarchy of controls |
For 2022 the actions taken according to the Hierarchy of Controls were:
-Implementation of Administrative controls -Delivery of Personal Protection Equipment -Safe Driving in High Mountains Training; and -Emergency Preparedness Training. |
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Report on actions taken or underway to eliminate other work-related hazards and minimize risks using the hierarchy of controls |
In order to eliminate hazards and minimize risks during 2022, Rio2 complied with Chilean Occupational Health and Safety Standards and Regulations (Chile's Occupational Safety and Health Law No. 16744 regulates workplace accidents and occupational diseases). The Company also implemented plans, and programs as shown in the attached table. There were no changes in programs implemented between 2021 and 2022. |
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Fenix Gold 2022 Elimination of Work-related Hazards -Safety Regulations, Programs, Standards. Regulations |
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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 |
No worker has been excluded from this disclosure. |
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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 |
Rio2 identifies and develops Health and Safety procedures and protocols based on the following:
a) Host government regulations on safety b) Occupational health and risk prevention, and c) The adequacy of safety standards in accordance with our operations.
In addition, we hold daily mandatory safety meetings with all personnel and contractors to identify risks as operations and activities change to meet project demands.
When necessary, we hire external consulting services specialized in risk prevention. |
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Safety Training |
|
|
Disclose the average number of training hours provided to its workforce for health, safety, and emergency management training |
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Average hours of health, safety, and emergency response training for (a) full-time/direct employees |
53.54 |
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In 2022, the Company trained workers who started work but left within the same reporting year period. The average hours of training in health, safety, and emergency response for contract employees is high because several workers entered after the start and before the end of the period. |
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|
Average hours of health, safety, and emergency response training for (b) contract employees |
259.27 |
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Security, Human Rights and Rights of Indigenous People |
|
|
Identify the countries of operations within the World Bank's list of “Fragile and Conflict-Affected Situations” |
None |
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Describe the nature of any social risks, for all operating countries, that could have a material risk to operations |
Please see the attached document for a description of the social risks related to the Fenix Gold Project. |
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|
Rio2 2022 Social Risks Disclosure |
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|
Percentage of proved reserves that are located in or near areas of active conflict |
0.0000% |
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The total amount of proved reserves |
650,000 |
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|
|
Percentage of probable reserves that are located in or near areas of active conflict |
0.0000% |
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The total amount of probable reserves |
722,000 |
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|
Percentage of inferred, indicated and measured resources that are located in or near areas of active conflict |
0.0000% |
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|
Total amount of inferred, indicated and/or measured resources |
6,733,000 |
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Percentage of proved reserves that are located in or near areas that are considered to be indigenous peoples’ land |
0.0000% |
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There are no percentage of proved reserves that are located in or near areas that are considered to be Indigenous peoples’ land. |
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The total amount of proved reserves |
649,999 |
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Percentage of probable reserves that are located in or near areas that are considered to be indigenous peoples’ land |
0.0000% |
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There are no percentage of probable reserves that are located in or near areas that are considered to be Indigenous peoples’ land. |
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The total amount of probable reserves |
722,000 |
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Percentage of inferred, indicated and measured resources that are located in or near areas that are considered to be indigenous peoples’ land |
0.0000% |
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There are no percentage of inferred, indicated and measured reserves that are located in or near areas that are considered to be Indigenous peoples’ land. |
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Total amount of inferred, indicated and measured resources |
6,733,000 |
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Describe due diligence practices and procedures with respect to indigenous rights of communities in which it operates or intends to operate |
Please see attached disclosure. |
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Colla Communities Transhumance Routes |
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Rio2's DD Practices Procedures Indigenous Communities |
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Discuss practices and list procedures while operating in areas of conflict |
Rio2 does not operate in areas of conflict. |
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Community Relations |
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Artisanal and Small-Scale Mining |
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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 |
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There are no operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the Fenix Gold Project. |
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Programs |
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Report on community relations programs, objectives and achievements in the past 3 years |
See attached disclosure. |
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In 2022 we continued our engagement process with diverse stakeholders of the Fenix Gold Project with the following objectives:
1. To build collaboration ties and generate the appropriate social conditions and social license to guarantee the project's continuity. 2. Strengthen the image and reputation of the company with stakeholder groups in the project's area of influence. 3. Ensure the proper implementation of social guidelines in accordance with the company's strategy and maintain the project's social and sustainability viability. |
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Rio2 Community Relations Programs |
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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 |
Rio2 has processes, procedures, and practices to manage risks and opportunities associated with the rights and interests of the communities in the areas where we do business including:
• Evaluation of Actors related to the Project (EIA ) • Program of Attention to Observations • Principles of Community Relations and Social Management • Policy of contribution to the Communities • Procedure for contracting Suppliers of Indigenous Communities • Register of contributions to Communities • Register of meetings with institutions • Social Management Plan • Gender Inclusion Plan • Vulnerable People Inclusion Plan |
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Governance |
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Climate Change |
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Oversight |
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Is there board-level oversight of climate-related issues within your organization |
Not currently, but we plan to do so within the next two years |
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Responsibility |
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Provide the highest management-level position(s) or committee(s) with responsibility for climate-related issues |
Chief Executive Officer (CEO) |
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Nature of primary responsibility |
Both assessing and managing climate-related risks and opportunities |
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Reporting |
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Frequency of reporting to the board on climate-related issues |
Not reported to the board |
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Incentives |
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Do you provide incentives for the management of climate-related issues, including the attainment of targets |
No, not currently but we plan to introduce them in the next two years |
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Risk and Opportunity Management |
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Does your organization have a process for identifying, assessing, and responding to climate-related risks and opportunities |
Yes |
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Risk Assessments |
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Have you identified any inherent climate-related risks with the potential to have a substantive financial or strategic impact on your business |
Yes |
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Provide details of identified risks in your direct operations with the potential to have a substantive financial or strategic impact on your business, and your response to those risks |
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Risk 1 |
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Where in the value chain does the risk driver occur |
Direct operations |
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Risk type and primary driver |
Emerging regulation - Carbon pricing mechanisms |
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Time horizon of risk |
Medium-term |
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Likelihood of impact |
About as likely as not |
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Magnitude of impact |
Unknown |
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Potential impact financial figure and explanation |
Currently undefined |
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Primary potential financial impact |
Increased indirect (operating) costs |
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Cost of response to risk and description |
Currently undefined |
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Risk 2 |
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Where in the value chain does the risk driver occur |
Direct operations |
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Risk type and primary driver |
Acute Physical - Increased severity and frequency of extreme weather events such as cyclones and floods |
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Time horizon of risk |
Medium-term |
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Likelihood of impact |
More likely than not |
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Magnitude of impact |
Medium-low |
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Potential impact financial figure and explanation |
Potential operations stoppage due to loss of access to site from mudslide event. Rio2 has calculated the stoppage to last between 2 to 4 weeks while access is reestablished. |
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Primary potential financial impact |
Increased direct costs |
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Cost of response to risk and description |
Unknown, potentially loss of one month's production, and loss of associated revenue. |
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Opportunity Assessments |
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Have you identified any climate-related opportunities with the potential to have a substantive financial or strategic impact on your business |
Yes |
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Provide details of opportunities identified with the potential to have a substantive financial or strategic impact on your business |
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Opportunity 1 |
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Where in the value chain does the opportunity driver occur |
Direct operations |
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Opportunity type |
Energy source: Use of new technologies |
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Opportunity time horizon |
Medium-term |
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Opportunity likelihood |
Likely |
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Magnitude of impact |
Low |
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Potential impact financial figure and explanation |
Installation of solar energy for operation and camp once operations are established. |
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Primary potential financial impact driver |
Reduced direct costs |
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Cost and strategy to realize opportunity and explanation of cost calculation |
Requires a trade-off study, cost benefi t and return on investment timeframe. |
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Opportunity 2 |
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Where in the value chain does the opportunity driver occur |
Direct operations |
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Opportunity type |
Resource efficiency : Use of more efficient modes of transport |
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Opportunity time horizon |
Long-term |
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Opportunity likelihood |
More likely than not |
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Magnitude of impact |
Medium-low |
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Potential impact financial figure and explanation |
Replace diesel-powered vehicles with electric powered vehicles for some stages of the operation. |
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Primary potential financial impact driver |
Reduced direct costs |
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Cost and strategy to realize opportunity and explanation of cost calculation |
Requires technology development for high- altitude cold-environment electric-powered vehicles, trade-off study. |
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Strategy |
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Have climate-related risks and opportunities influenced your organization’s strategy and/or financial planning |
Yes |
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Yes, please refer to the disclosure above for a description of our strategy and financial planning. |
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Water Management |
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Quality and Quantity Dependency |
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Rate the importance (current and future) of freshwater quality and quantity to the success of your business |
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Direct use importance rating |
Neutral |
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The Fenix Gold Project will use retreated industrial water from Copiapó. |
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Indirect use importance rating |
Important |
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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 |
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Direct use importance rating |
Vital |
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The Fenix Gold Project will use retreated industrial water from Copiapó. |
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Indirect use importance rating |
Important |
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Risk Assessments |
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Does your organization undertake a water-related risk assessment |
Yes, water-related risks are assessed |
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Select the options that best describe your procedures for identifying and assessing water-related risks |
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i. Coverage |
Partial |
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ii. Risk Assessment Procedure |
Water risks are assessed as a standalone issue |
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iii. Frequency of Risk Assessment |
Annually |
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iv. How far into the future are risks considered |
3 to 6 years |
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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, only within our direct operations |
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The Company has identified two main risks: - Regulations becoming more restrictive. -Increased costs for the supply of water. |
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Provide details of identified risks in your direct operations with the potential to have a substantive financial or strategic impact on your business, and your response to those risks |
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Risk 1 |
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Type of risk |
Regulatory |
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Primary risk driver |
Physical - Increased water stress |
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Primary potential impact |
Increased production costs |
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Risk timeframe |
More than 6 years |
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Magnitude of potential impact |
Medium |
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Likelihood of potential impact |
Unlikely |
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Potential impact financial figure and explanation |
Increased water costs, and the need to use desalinated water. |
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Primary response |
Engage with regulators/policymakers |
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Cost of response and description of response |
Unknown |
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Risk 2 |
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Type of risk |
Other, please specify |
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Opposition to use of water in Nueva Atacama |
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Primary risk driver |
Physical - Increased water scarcity |
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Primary potential impact |
Increased operating costs |
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Risk timeframe |
More than 6 years |
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Magnitude of potential impact |
Medium |
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Likelihood of potential impact |
Unlikely |
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Potential impact financial figure and explanation |
Increased water costs, and the need to use desalinated water. |
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Primary response |
Engage with local communities |
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Cost of response and description of response |
Unknown |
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Opportunity Assessments |
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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 but are unable to realize them |
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Responsibility |
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Provide the highest management-level position(s) or committee(s) with responsibility for water-related issues |
Chief Executive Officer (CEO) |
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Policy |
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Does your organization have a documented water policy |
No |
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Reporting |
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Frequency of reporting to the board on water-related issues |
As important matters arise |
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Incentives |
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Do you provide incentives to C-suite employees or board members for the management of water-related issues |
No, and we do not plan to introduce them in the next two years |
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Strategy |
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Are water-related issues integrated into any aspects of your long-term strategic business plan |
Yes, water-related issues are integrated |
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If water-related issues are integrated into any aspects of your long-term strategic business plan, please describe further |
We are currently identifying alternative water sources to enable project expansion, environmentally approved continental water or access to desalinated water via pipelines. |
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If water-related issues are integrated into any aspects of your long-term strategic business plan, identify the associated long-term time horizon |
5-10 years |
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Governance structure and composition |
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Describe its 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. |
Rio2’s Board of directors is responsible for the strategic supervision and direction of Management of Rio2 Limited. The Board is composed of seven directors, each with a specific and strategic level of expertise beneficial to the business of the Company.
The CEO is appointed by the Board and tasked with achieving the strategic objectives of the Company and its operational priorities. |
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List the committees of the highest governance body that are responsible for decision making on and overseeing the management of the organization’s impacts on the economy, environment, and people; e.g., the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc |
The committees responsible for decision- making on economic, environmental, and social topics including the Corporate Governance and Compensation Committee, the Audit Committee, and the Health, Safety, and Community Committee.
Please see links below for the Health, Safety, and Community Charter, and the Audit Committee Charter. |
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Health Safety and Community Charter
Audit Committee Charter |
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Delegation of responsibility for managing impacts |
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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, the CFO or internal audit reporting to the Board |
Yes |
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Describe whether the highest governance body has delegated responsibility for the management of impacts to other employees; |
CEO and the Health, Safety, Environment, and Social Responsibility Committee of the Board of Directors. |
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Consultation Process |
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Report the processes for consultations between stakeholders and the highest governance body on economic, environmental and social topics, e.g., for most mining companies it would be the executives and operations and not the Board, and if delegated, explain how |
Rio2's consultation processes are led by the Social, Environmental, and Permitting teams that report directly to the CEO. The results of the consultation process are reported to the Health, Safety, and Community Committee as important matters arise. |
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Governance structure and composition |
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Describe the composition of the highest governance body and its committees by |
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Number of executive members |
1 |
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Number of non-executive members |
6 |
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Number of independent members |
5 |
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Less than 3 years of tenure of members on the governance body |
1 |
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3-6 years of tenure of members on the governance body |
6 |
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6-9 years of tenure of members on the governance body |
0 |
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More than 10 years of tenure of members on the governance body |
0 |
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Number of other significant positions and commitments held by each member, and the nature of the commitments |
Two of our board directors hold significant positions and commitments in other organizations as follows:
Lead Director Klaus Zeitler (Chairman of the Board of Rio2 Limited in 2021) is also the Executive Chairman of Amerigo Resources Ltd. and Director of Western Copper and Gold Corporation.
The Chairman of Rio2's Audit Committee Ram Ramachandran is also the CFO of Purepoint Uranium Group Inc. |
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Number of Male governance body members |
7 |
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Number of Female governance body members |
0 |
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Number of members from under-represented social groups |
0 |
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Description of competencies relating to economic, environmental, and social topics |
Please see attached disclosure. |
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2022 Rio2 Board of Directors |
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2022 Rio2 Board Competencies |
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Description of stakeholder representation |
Rio2 is a Canadian exploration and development company. Its stakeholder representation consists of employees and workers who are not employees, trade union service suppliers, local community suppliers and services, and our shareholders and providers of capital. For a description of our ownership structure, please see the attached file. |
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Rio2 Ownership Structure |
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Board Diversity |
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Do you have a diversity policy and if so, provide details, link to the policy or attach the file |
Currently Rio2 does not have a Board Diversity Policy |
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Chair of the highest governance body |
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Is the chair of the highest governance body is also a senior executive in the organization |
No |
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Mr. Klaus Zeitler was the Non-Executive Chairman of the Board of Directors of Rio2 Limited until November 2022. On November 28, 2022, Alex Black became the Executive Chairman of the Board. |
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Conflicts of Interest |
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Describe the processes for the highest governance body to ensure that conflicts of interest are prevented and mitigated |
All Rio2 officers and managers maintain an "open door" policy regarding questions of business conduct regarding our Business Conduct and Ethics Code and its applicability. Employees are encouraged to be alert to any work-related activities that could be construed as a violation of this Code. They have an obligation to promptly report potential violations orally, in writing, or, if preferred, anonymously. In 2022, Rio2 finalized the designing of an intranet platform that will provide employees with an additional channel for reporting of violations to the Company's Code of Business Conduct and Ethics once the Company starts operations. |
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Report whether conflicts of interest are disclosed to stakeholders, including, as a minimum, conflicts of interest relating to |
Yes |
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Cross-board membership |
Yes |
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Cross-shareholding with suppliers and other stakeholders |
Yes |
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Existence of controlling shareholder |
Yes |
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Related parties, their relationships, transactions, and outstanding balances |
Yes |
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Collective knowledge of highest governance body |
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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 did not receive training in 2022. |
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Evaluation of Highest Governance Body |
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Describe actions taken in response to the evaluations, including changes to the composition of the highest governance body and organizational practices |
The Board did not receive training in 2022, hence there were no resulting actions. |
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Transparency |
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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 |
In 2022 the Board met with Management four times to discuss strategy and goals for the development of the Fenix Gold Project. Financial, social, and environmental topics were discussed. |
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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 |
HSE impacts are assessed and managed by the HSC Board Committee as mandated by its charter and the Company's Safety, Occupational Health, Environment, and Social Responsibility Policy. |
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Describe whether and how the highest governance body engages with stakeholders to support these processes |
Yes The Company's Chairman, CEO and senior officers speak with stakeholders frequently and report any feedback regarding economic, environmental and social matters to the Board on a regular basis. |
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Describe how the highest governance body considers the outcomes of these processes |
All issues requiring actions are identified, addresses and reported to the Board by the HSC Committee on a regular basis. |
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Ethics |
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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 |
Rio2 has zero-tolerance for bribery and corruption in all business dealings and relationships, in all jurisdictions in which it operates. Implementing and enforcing effective systems to prevent bribery and corruption is central to this approach. For this reason, Rio2 has adopted an Anti bribery and Anti- Corruption Policy to avoid and prevent bribery and corruption in all business dealings of, and transactions undertaken by, the Corporation.
This Policy provides information and guidance on how to recognize and deal with bribery and corruption issues and provides guidelines and establishes procedures to ensure that all those working for, on behalf of, and with the Corporation have a clear and consistent understanding of how to avoid and prevent bribery and corruption. This Policy applies to all employees and consultants of Rio2 and its subsidiaries.
Please refer to the link below to access Rio2's Anti-Bribery and Anti-Corruption Policy. |
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Rio2 Anti-Bribery and Anti-Corruption Policy |
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Report net production from activities located in the countries with the 20 lowest rankings in Transparency International’s Corruption Perception Index (CPI) (Saleable tonne) |
0 |
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Anti-Corruption |
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Communication and Training |
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i) Total number of governance body members that have received training on anti-corruption, broken down by region |
7 |
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ii.) Total percentage of governance body members that have received training on anti-corruption, broken down by region |
100.0000% |
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Total number and percentage of employees that have received training on anti-corruption, broken down by employee category and region |
26 |
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1a. Total number of employees that received training on anti-corruption |
26 |
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Total number of employees |
26 |
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1b. Total percentage of employees that received training on anti-corruption |
100.0000% |
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2a. Total number of senior employees that received training on anti-corruption |
7 |
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Total number of senior employees |
7 |
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2b. Percentage of senior employees that received training on anti-corruption |
100.0000% |
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3a. Total number of middle management employees have received training on anti-corruption |
14 |
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Total number of middle management employees |
14 |
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3b. Percentage of middle management employees have received training on anti-corruption |
100.0000% |
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Total number of technical employees |
0 |
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5a. Total number of production employees that received training on anti-corruption |
0 |
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Total number of production employees |
0 |
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5b. Percentage of production employees that received training on anti-corruption |
Does Not Apply |
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6a. Total number of administrative employees that received training on anti-corruption |
5 |
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Total number of administrative employees |
5 |
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6b. Percentage of administrative employees that received training on anti-corruption |
100.0000% |
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Remuneration |
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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 Compensation Committee reviews the achievement of project specific goals included in the Company’s plans such as: identifying mineral prospects; executing successful drill programs; advancing or completing scoping, pre-feasibility, or feasibility studies; building and maintaining social license through community relationships and initiatives; acquiring necessary permits, and successfully advancing projects and/or initiatives that accomplish the Company’s goals.
In addition, the Committee considers management’s performance in unplanned situations and their ability to manage projects through complex political and social situations.
Finally, corporate objectives such as successful capital raising (if applicable), peer benchmarking and market performance are considered. |
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How the views of stakeholders (including shareholders) regarding remuneration are sought and taken into consideration |
Company shareholders do not vote on executive compensation at this time. |
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Stakeholder Engagement |
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Report the purpose of the stakeholder engagement |
Please see attached disclosure. |
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Rio2 Stakeholder Engagement |
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Tax |
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Describe the approach to stakeholder engagement and management of stakeholder concerns related to tax, including: |
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i. The approach to engagement with tax authorities |
Rio2 retains third-party experts to advise on tax related issues and ensure full compliance with tax obligations. |
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ii. The approach to public policy advocacy on tax |
Rio2 does not engage in public policy advocacy on tax-related issues. |
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iii. The processes for collecting and considering the views and concerns of stakeholders, including external stakeholders |
Rio2 does not engage in public policy advocacy on tax-related issues. |
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This document was prepared using |
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, Planet Earth's complete ESG reporting solution. |
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