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Published on July 30, 2024 |
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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. |
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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 Canadian listed Junior mining company with a focus on the acquisition and development of mining projects into operations in Latin-America. |
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Rio2 is currently focused on taking its greenfields Fenix Gold Project in Chile to construction and production in the shortest possible timeframe based on a staged development strategy, starting the project as a medium sized mine to generate cashflow, then expanding the project to an optimal size incorporating improvements in technology and climate change.
Rio2 and its wholly owned subsidiary in Chile, Fenix Gold Limitada, are companies that believe in high environmental standards and environmental and social responsibility, with the firm conviction that it is possible to develop mining projects aligned with the three axes (Social, Environment, and Economics) of sustainable development, to the benefit of all stakeholders.
As related companies, we reaffirm our commitment to apply environmental standards over and above those that are mandated by regulators, complying with modern best practice and operating in an environmentally and socially responsible manner in the territories where we operate.
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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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GRI Reporting Requirements |
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Choose the statement as to how the organization has aligned their reporting utilizing GRI Standards |
The organization has reported with reference to the GRI Standards for the period defined below |
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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 |
2023-01-01 |
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To |
2023-12-31 |
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External Assurance |
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Describe your company's policy and practice for seeking external assurance, including whether and how the highest governance body and senior executives are involved |
The Company has no active operations and hence has not obtained external assurance. |
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Has the report been externally assured |
No |
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Financial Reporting Period |
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Does the financial reporting period align with the sustainability reporting period (eg. calendar vs fiscal) |
Yes |
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Geographic Scope of Report |
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Unless otherwise noted, the data in this report covers sustainability matters related to the following locations of operations |
Chile |
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Identify notable exclusions of the geographical and/or business scope of the report, and reference of any existing or planned reports that do or will address these (e.g., assets recently divested or acquired, non-managed joint ventures, specific exploration activities, recently closed sites, etc.) |
There are no geographic or operational exclusions in this report. |
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Reporting Practice |
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Provide the full contact details (name, title, address, email and/or phone number) for an individual responsible to address questions regarding the report or its contents |
Andrew Cox, President & CEO Alejandra Gomez, Corporate Communications Consultant.
All questions regarding this report can be sent to the following email address, info@rio2.com.
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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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Membership of Associations |
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List of the industry associations, other membership associations, and national or international advocacy organizations in which the organisation participates in a significant role, as well as any economic, environmental, and social charters, principles, or other programmes that the organisation subscribes to or supports, such as the United Nations Global Compact (UNGC), etc. |
Fenix Gold, a subsidiary of Rio2, is an associate of the National Mining Society of Chile (SONAMI), an institution that brings together and represents large, medium and small-scale metallic and non-metallic mining activity in Chile, and of the Corporation for the Development of Atacama (CORPROA), a non- profit private institution made up of regional companies and entrepreneurs whose purpose is to design, promote, execute and support sustainable regional development strategies that raise the quality of life of the population in the Atacama Region. |
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Scale of the Organization |
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Describe how the organization defines its "Operation" |
For the purpose of this report, the "Operation" is defined as the Fenix Gold development project. |
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Report the total number of operations |
1 |
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Report the quantity of products or services provided during the reporting period and provide description (e.g. number of units produced, amount of primary commodity produced, number of services provided, etc.) |
Not Applicable. |
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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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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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Strategy |
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Link to company's statements of: Purpose, Vision, Mission and Values; Sustainability/ESG strategy (URL) |
https://www.rio2.com/responsibility |
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Provide a statement from the highest governance body or most senior executive of the organization (i.e., CEO, chair, or equivalent senior position) about the relevance of sustainable development to the organization and its strategy for contributing to sustainable development. (CEO's message for this report) |
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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Message from the CEO |
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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 |
Material topics were determined through the four phases described below.
Phase 1: Understanding the organization’s context. Standards, guides, and all relevant documentation applicable to the national and international mining sectors were reviewed and analyzed. Phase 2: Identification of actual and potential impacts. A review and evaluation of the actual and potential project risks was completed, resulting from substantial dialogue with stakeholders and technical, environmental, and economic analyses. Phase 3: Stakeholder Engagement. Stakeholder concerns and expectations were taken into account, and a consultation process was carried out with communities, government authorities, and other relevant actors. Stage 4: Prioritization of Material Issues. The most significant and relevant issues reported were identified by the Company’s Communications, Environmental, and Social teams. |
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How did the organization identify the material topics |
• Environmental impact assessment • Social impact assessment • Civil society organizations |
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How did the organization prioritize the impacts based on their significance |
Materiality was determined by the Company's management's experience in mine project development and information obtained from various external consultancy firms at the Company's request while producing the Environmental Impact Study for the Fenix Gold Project. The Company also used public information as a reference. |
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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 • Other, please specify |
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In 2023 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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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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Supply Chain |
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Provide a description of the organization’s supply chain, including the types of suppliers (e.g., equipment, consumables, logistics, brokers, contractors, wholesalers, etc.) |
During the reporting period, the Fenix Gold Project focused on the EIA claim process. A supply chain will be established during the construction and operation stages of the project. |
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Environment |
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Climate Change - Stewardship |
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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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The Company engaged an external independent party to advise and evaluate the Impact of Climate Change on the Project. This report was prepared using TCFD and EP4 standard guidance. Financial planning and details will be provided once the Project enters the production phase. |
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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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Risk 1 - Provide details of the most material (financial or strategic) climate-related risks to your operations: |
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Where in the value chain does the risk driver occur |
Direct operations |
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Risk classification |
Acute Physical - Increased severity and frequency of extreme weather events, such as storms, 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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The financial implications of the risk before action is taken (currency, Millions) |
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Financial implications will depend on the length of time required to reestablish Project access due to road damage from severe weather events. |
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Explain your financial estimates of impact |
It does not apply to the reporting period as the Project is not in the production stage. |
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Primary potential financial impact |
Increased indirect (operating) costs |
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The methods used to manage the risk |
Not Applicable |
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The costs of actions taken to manage the risk (currency, Millions) |
0 |
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If the reporting organization does not have a system in place to calculate the financial implications or costs, or to make revenue projections, please report its plans and timeline to develop the necessary systems to do so |
It does not apply to the reporting period. |
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For the construction and operation phases of the Project, financial implications will be calculated and projected. |
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Risk 2 - Provide details of the most material (financial or strategic) climate-related risks to your operations: |
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Where in the value chain does the risk driver occur |
Direct operations |
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Risk classification |
Availability of water |
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Time horizon of risk |
Medium-term |
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Likelihood of impact |
Unlikely |
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Magnitude of impact |
Medium-low |
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The financial implications of the risk before action is taken (currency, Millions) |
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Currently undefined as the Project is not in operation. |
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Explain your financial estimates of impact |
For the construction and operation phases of the Project, financial implications will be calculated and projected. |
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Primary potential financial impact |
Increased direct costs |
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The methods used to manage the risk |
Not Applicable |
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The costs of actions taken to manage the risk (currency, Millions) |
0 |
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If the reporting organization does not have a system in place to calculate the financial implications or costs, or to make revenue projections, please report its plans and timeline to develop the necessary systems to do so |
Financial implications and cost will be calculated for the construction and operation phases of the Project. |
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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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Opportunity 1 - Provide details of the most material (financial or strategic) climate-related opportunities to your operations: |
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Where in the value chain does the opportunity driver occur |
Direct operations |
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Opportunity type and classification |
Energy source: Other, please specify |
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There is an opportunity to connect to the national energy grid (Carrera Pinto substation). |
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Opportunity time horizon |
Medium-term |
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Opportunity likelihood |
About as likely as not |
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Magnitude of impact |
Medium-high |
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The financial implications of the opportunity before action is taken (currency, Millions) |
0 |
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Currently undefined as it requires a trade-off study, cost-benefit, and return on investment timeframe. It is considered an improvement to the Project once it is in operation. |
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Explain your financial estimates of impact |
Financial implications and cost will be calculated for the construction and operation phases of the Project. |
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Primary potential financial impact driver |
Reduced direct costs |
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The methods used to manage the opportunity |
Use of renewable and lower carbon footprint energy |
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The costs of actions taken to manage the opportunity (currency, Millions) |
0 |
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Currently unknown. |
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Opportunity 2 - Provide details of the most material (financial or strategic) climate-related opportunities to your operations: |
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Where in the value chain does the opportunity driver occur |
Direct operations |
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Opportunity type and classification |
Resource efficiency: Use of more efficient modes of transport |
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Opportunity time horizon |
Medium-to-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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The financial implications of the opportunity before action is taken (currency, Millions) |
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Currently unknown. |
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Explain your financial estimates of impact |
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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The methods used to manage the opportunity |
Use of renewable and lower carbon footprint energy |
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The costs of actions taken to manage the opportunity (currency, Millions) |
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Currently unknown. |
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Greenhouse Gas Emissions |
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Scope 1 |
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Disclose the entity's absolute gross greenhouse gas (GHGs) emissions generated during the reporting period, expressed as metric tonnes of CO2 equivalent (tonne CO₂-e) |
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Fuel related (CH₄) (tonne) |
0.001 |
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Fuel related (N₂O) (tonne) |
0.000 |
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Carbon dioxide (CO₂) (tonne CO₂-e) |
35.248 |
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Methane (CH₄) (tonne CO₂-e) |
0.025 |
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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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Perfluoro methane (CF₄) (tonne CO₂-e) |
0.000 |
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Perfluoro ethane (C₂F₆) (tonne CO₂-e) |
0.000 |
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Perfluoro butane (C₄F₁₀) (tonne CO₂-e) |
0.000 |
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Perfluoro hexane (C₆F₁₄) (tonne CO₂-e) |
0.000 |
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The total amount of gross global Scope 1 GHG emissions (CO₂-e) (tonne) |
35.273 |
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GHG emissions for the 2023 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 2023, Chile did not implement an emissions- limiting regulation or program. |
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Discuss any change in its Scope 1 emissions from the previous reporting period, including whether the change was due to emissions reductions, divestment, acquisition, mergers, changes in output, and/or changes in calculation methodology (i.e. any changes the entity made to the measurement approach, inputs and assumptions during the reporting period and the reasons for those changes, if any) |
Due to the Rejection of the EIA by the Chilean authority in late 2022, there was a decreased level of activity at the Project site. Consequently, there was a reduction in the emission levels. |
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In the case that current reporting of GHG emissions to the CDP or other entity (e.g., a national regulatory disclosure program) differs in terms of the scope and consolidation approach used, describe the differences and provide those reported emissions. |
It does not apply to the Project during the reporting period. |
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The entity may discuss the calculation methodology for its emissions disclosure, such as if data are from continuous emissions monitoring systems (CEMS), engineering calculations, or mass balance calculations |
Mass balance calculations were used for Scope 1 emissions disclosure. |
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Source of the emission factors and the global warming potential (GWP) rates used, or a reference to the GWP source |
GHG emissions calculations for this ESG report are based on US EPA conversion factors recommended by the GHG Protocol. |
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Scope 2 |
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If company specific calculations are not available, disclose the gross location-based energy indirect (Scope 2) global greenhouse gas (GHG) emissions to the atmosphere (tonne CO₂-e): |
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Does the company purchase externally supplied energy (grid electricity) |
Yes |
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Report the total electricity purchased from external suppliers for the reporting year in gigajoules (GJ) |
474.048 |
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In what jurisdiction is the source of energy (utility) located |
Chile |
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Conversion factor (see Guidance): |
0.250 |
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Source: Ministerio de Energía de Chile, 2023. Available at: http://energiaabierta. cl/visualizaciones/factor-de-emision-sic-sing/ (only in Spanish). |
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Total amount of Scope 2 GHG emissions from purchased electricity (CO₂-e) (tonne) |
32.920 |
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Does the company purchase externally supplied heat |
No |
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Does the company purchase externally supplied steam |
No |
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Does the company purchase externally supplied cooling |
No |
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The total amount of gross global Scope 2 GHG emissions (CO₂-e) (tonne) |
32.920 |
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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 |
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Energy Consumption |
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Total energy consumption within the organization (gigajoules, GJ) |
979.538 |
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Report the energy owned and controlled by the organization consumed in gigajoules for the following |
979.538 |
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Electricity purchased/generated for consumption (gigajoules, GJ) |
474.048 |
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Heating purchased/generated for consumption (gigajoules, GJ) |
0.000 |
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Cooling purchased/generated for consumption (gigajoules, GJ) |
0.000 |
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Steam purchased/generated for consumption (gigajoules, GJ) |
0.000 |
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Non-renewable fuel consumed (gigajoules, GJ) |
505.490 |
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Renewable fuel consumed (gigajoules, GJ) |
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) |
979.538 |
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Percentage energy consumed that was supplied by grid electricity |
48.3951% |
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Percentage of energy consumed that is renewable energy (does not include purchased grid-mix) |
0.0000% |
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Water Management - Stewardship |
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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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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 the two potential risks below.
1.Regulations becoming more restrictive. 2. Increased costs for the supply of water. |
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Provide details of identified risk in your direct operations with material financial or strategic impacts: 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 |
About as likely as not |
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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 |
Secure alternative water supply |
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Cost of response and description of response |
There is desalinated water available in Copiapo. The cost of desalinated water is estimated to be three times the cost of the current water supply. |
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Provide details of identified risk in your direct operations with material financial or strategic impacts: Risk 2 |
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Type of risk |
Other, please specify |
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Opposition to the use of water supplied by 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 |
About as likely as not |
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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 |
Secure alternative water supply |
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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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Water |
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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) |
0.286 |
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Disclose the amount of freshwater water that was consumed in its operations (in thousands of cubic meters) |
0.286 |
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The amount of water consumed in the project was 0.286 megaliters approximately extracted from the Can Can well (natural source) |
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Analyse and list all operations for water risks and identify activities that withdraw and consume water in locations with High (40–80%) or Extremely High (>80%) Baseline Water Stress as classified by the World Resources Institute’s (WRI) Water Risk Atlas tool, Aqueduct |
Although the Fenix Gold project is located in a high-risk area according to the Atlas of Water Risks' classification, the water for the operations will be industrially treated wastewater from the city of Copiapó, and the Project's plant design contemplates a 100% reuse of process water.
The physical water quantity risk associated with the year-on-year variation was classified as high risk.
It's important to note that the physical, reputational, and regulatory water risks for the Fenix Gold project are all rated as low risk. |
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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 |
100.0000% |
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In previous reports, Rio2 reported based on national Chilean standards. In 2023, the Company is reporting based on WRI and SASB guidelines. |
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Disclose water withdrawn in locations with High or Extremely High Baseline Water Stress (in thousands of cubic meters) |
0.286 |
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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 |
100.0000% |
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Total water consumed in locations with high or extremely high baseline water stress (in thousands of cubic meters) |
0.286 |
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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 incidents of non-compliance associated with water quality permits, standards, and regulations, including violations of a technology-based standard and exceedances of quality-based standards (note: only those that resulted in a formal enforcement action(s)) |
0 |
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Violations - continuous discharges, limitations, standards, and prohibitions that are generally expressed as maximum daily, weekly average, and monthly average (regardless of their measurement methodology or frequency) |
0 |
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Violations - non-continuous discharges and limitations that are generally expressed in terms of frequency, total mass, maximum rate of discharge, and mass or concentration of specified pollutants (regardless of their measurement methodology or frequency) |
0 |
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Violations - other, please specify |
0 |
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Water and Effluents |
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Water Consumption |
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Report the total water consumption from all areas in megalitres |
0.286 |
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Report the total water consumption from all areas with water stress in megalitres |
0.286 |
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Waste Management |
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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 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 ($Millions) |
0 |
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Biodiversity |
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Management Plan |
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Describe the environmental and biodiversity management plan(s) implemented at active sites |
Rio2's biodiversity management plans are disclosed in Fenix Gold's EIA file, which was approved in December 2023. Rio2 will implement biodiversity plans and programs during construction, which is expected to occur in Q4 2024. |
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1.1 Lifecycle stages to which the plan(s) apply |
• Exploration and appraisal • Site development • Production • During closure • Decommissioning |
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1.3 The underlying references for its plan(s), including whether they are codes, guidelines, standards, or regulations; whether they were developed by the entity, an industry organization, a third-party organization (e.g., a non-governmental organization, a governmental agency, or some combination of these groups) |
The Biodiversity Plan included in the EIA was developed by specialized consultants. The plan and its information have been prepared in compliance with current regulations, national guidelines, and international standards. Furthermore, we have proposed voluntary commitments that are intricately aligned with the Project design and our 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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Social |
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Scale of the Organization |
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Direct Employee Information |
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Total number of full-time employees |
24 |
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Full-time - Male |
15 |
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Full-time - Female |
9 |
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Full-time - Non-binary |
0 |
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Total number of part-time employees |
10 |
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Part-time - Male |
0 |
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Part-time - Female |
0 |
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Part-time - Non-binary |
0 |
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Total number of permanent employees (full-time & part-time) |
24 |
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Permanent employees - Male |
15 |
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Permanent employees - Female |
9 |
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Permanent employees -Non-binary |
0 |
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Total number of temporary employees |
6 |
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Temporary employees - Male |
5 |
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Temporary employees - Female |
1 |
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Temporary employees - Non-binary |
0 |
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Total number of direct employees (includes full-time, part-time, temporary; exclude workers who are not employees) |
30 |
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Direct employees - Male |
20 |
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Direct employees - Female |
10 |
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Direct employees - Non-binary |
0 |
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Employees have chosen not to provide this information. |
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Out of the total direct employees, what is the number of non-guaranteed hours direct employees |
0 |
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Non-guaranteed hours - Male |
0 |
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Non-guaranteed hours - Female |
0 |
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Non-guaranteed hours - Non-binary |
0 |
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Non-guaranteed hours - Gender not disclosed |
0 |
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Describe the methodologies and assumptions used to compile the data |
The data was compiled using information from the monthly updated Workforce Reports that are provided by both affiliated and contracted companies. |
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Are the numbers reported in head count, full-time equivalent (FTE), or using another methodology |
The numbers are reported in headcount for full-time & part-time employees. |
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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 are disclosed at the end of the reporting period. |
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Provide contextual information necessary to understand the direct employment information provided |
We had a reduction in personnel as Fenix Gold obtained the necessary permits to carry out construction activities on the project. |
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Describe significant fluctuations, if any, in the number of direct employees during the reporting period and between reporting periods |
In the second semester of the reporting year, there was a progressive decrease in personnel due to the reasons disclosed above. |
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Workers Who are Not Employees |
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Total number of workers who are not employees - Male (full-time, part-time) |
10 |
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Full-time - Male |
6 |
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Part-time - Male |
4 |
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Total number of workers who are not employees - Female (full-time, part-time) |
1 |
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Full-time - Female |
0 |
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Part-time - Female |
1 |
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Total number of workers who are not employees - Non-Binary (full-time, part-time) |
0 |
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Employees have chosen not to provide this information. |
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Full-time - Non-binary |
0 |
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Part-time - Non-binary |
0 |
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Total number of workers who are not employees - Gender not disclosed (full-time, part-time) |
Confidentiality Constraints |
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Employees have chosen not to provide this information. |
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Total number of workers who are not employees and whose work is controlled by the organization (e.g., suppliers, customers, or other business partners, such as in joint ventures) |
11 |
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Describe the most common types of workers who are not employees and their contractual relationship with the organization |
Full-time, permanent employment is generally the most common type of employment. |
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The type of work they perform |
Consultants responsible for obtaining permits to begin construction on the project are the most common type of worker. |
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Describe the methodologies and assumptions used to compile the information about workers who are not employees. |
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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 |
The Company has included part-time consultants in the headcount. |
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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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Total Workforce |
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Total workforce (includes direct employees and workers who are not employees) |
41 |
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Total female workforce |
11 |
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Female workforce as percentage of total employed workforce |
26.8293% |
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Total male workforce |
30 |
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Male workforce as percentage of total employed workforce |
73.1707% |
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Total non-binary workforce |
0 |
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Non-binary workforce as percentage of total employed workforce |
0.0000% |
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Workers who are not employees (contractors) as percentage of total employed workforce |
26.8293% |
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Employment |
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Turnover & Gender Breakdown |
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Female direct employees |
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Total number of turnover (the number of females that left during the period) |
0 |
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Rate of turnover, females |
0.0000% |
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Male direct employees |
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Total number of turnover (the number of males that left during the period) |
0 |
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Rate of turnover, males |
0.0000% |
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Non-binary direct 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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Report the total number and rate of turnover for all Direct Employees |
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Total number of turnover (the number that left during the period) |
0 |
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Rate of turnover - direct employees |
0.0000% |
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Turnover & Age Breakdown |
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Direct Employees aged 30 years old and under |
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Total number of turnover (the number that left during the period) |
0 |
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As percent of total direct employees |
0.0000% |
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Rate of turnover |
Does Not Apply |
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Direct Employees aged between 30 and 50 years old |
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Total number of turnover (the number that left during the period) |
0 |
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As percent of total direct employees |
56.6667% |
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Rate of turnover |
0.0000% |
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Direct Employees over 50 years old |
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Total number of turnover (the number that left during the period) |
0 |
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As percent of total direct employees |
43.3333% |
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Rate of turnover |
0.0000% |
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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) • All employees on the payroll |
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Average age of direct employees |
47 |
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Diversity and Equal Opportunity |
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Diversity of Governance Bodies |
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Report the percentage of the diversity categories for the highest governance body and the total workforce per employee type |
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Board of Directors |
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Total Board of Directors |
7 |
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Percent Male |
100.0000% |
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Percent Female |
0.0000% |
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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 |
0.0000% |
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Percent over 50 years of age |
100.0000% |
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Percent minority or vulnerable group individuals in the "Board of Directors" category |
0.0000% |
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Diversity of Direct Employees |
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Senior Management |
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Total Senior Managers |
3 |
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Percent Male |
66.6667% |
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Percent Female |
33.3333% |
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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 |
33.3333% |
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Percent over 50 years of age |
66.6667% |
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Percent of minority or vulnerable group individuals in the "Senior Management Employee" category |
0.0000% |
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Salaried (excluding Senior Management) |
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Total Salaried (excluding Senior Management) |
27 |
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Percent Male |
70.3704% |
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Percent Female |
29.6296% |
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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 |
59.2593% |
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Percent over 50 years of age |
40.7407% |
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Percent of minority or vulnerable group individuals in the "Salaried Employee" category |
0.0000% |
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Diversity of Workers Who Are Not Employees |
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Workers who are not employees |
11 |
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Number of Males |
10 |
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Number of Females |
1 |
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Number of Non-Binary |
0 |
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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 direct employees not covered by collective bargaining agreements, report whether the organization determines their working conditions and terms of employment based on collective bargaining agreements that cover its other employees or based on collective bargaining agreements from other organizations |
The organization determines the working conditions and terms of employment for all workers, as there is no collective bargaining agreement. |
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Notice Periods |
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Minimum number of weeks’ notice typically provided to direct employees in the active workforce and their representatives prior to the implementation of significant operational changes that could substantially affect them |
6 weeks |
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Occupational Health and Safety |
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Work-related Injuries |
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Injuries - For the total workforce |
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Number of fatalities as a result of work-related injury |
0 |
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Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours worked |
0.000 |
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Number of high-consequence work-related injuries (excluding fatalities) |
0 |
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Rate of high-consequence work-related injuries (excluding fatalities) |
0.000 |
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Number of recordable work-related injuries |
0 |
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Rate of recordable work-related injuries |
0.000 |
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Main types of work-related injury, e.g., confined space, trips, falls, etc |
No work-related injuries were recorded for the 2023 calendar year. This applies to employees only. |
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Number of hours worked |
65,047 |
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Lost Time Injuries (LTIs) |
0 |
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Lost Time Injury Rate (LTIR) |
0.000 |
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In 2023, 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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Number of fatalities as a result of work-related injury |
0 |
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Rate of fatalities resulting from work-related injury. Note: calculating per 200,000 hours worked |
0.000 |
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Number of high-consequence work-related injuries (excluding fatalities) |
0 |
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Rate of high-consequence work-related injuries (excluding fatalities) |
0.000 |
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Number of recordable work-related injuries |
0 |
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Rate of recordable work-related injuries |
0.000 |
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Main types of work-related injury, e.g., confined space, trips, falls, etc |
No work-related injuries were recorded for the 2023 calendar year. This applies to contractors only. |
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Number of hours worked |
16,166 |
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Lost Time Injuries (LTIs) |
0 |
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Lost Time Injury Rate (LTIR) |
0.000 |
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In 2023, 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 Hours Worked |
81,213 |
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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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Lost Time Injury Rate (LTIR) |
0.000 |
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Report the work-related hazards that pose a risk of high-consequence injury, including |
Work-related hazards that pose a risk of high- consequence injury include those identified below.
- Driving - Blows to the hand - Blows from objects causing head injuries - Falls from different levels - Same level falls -Cuts with sharp and cutting objects - Particles projection - Noise exposure - Exposure to dusts, gases, metallic fumes and vapors - Blows with tools - Entrapment by machinery - Back pain associated with handling of manual loads - Personnel transportation - Mobile equipment operations - Falling from suspended loads, mobile cranes, and overhead cranes - Fires - Handling of hazardous substances - Electrical hazards |
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How have these hazards been determined |
Rio2 utilizes the ISO 45001 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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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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Actions taken or underway to eliminate these hazards and minimize risks using the hierarchy of controls |
For 2023 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 2023, 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 2022 and 2023. |
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Fenix Gold 2023 Elimination of Work-related Hazards -Safety Regulations, Programs, Standards |
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Have rates been calculated based on 200,000 or 1,000,000 hours worked |
200,000 |
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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 |
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Describe any occupational health and safety training provided to workers, including generic training, as well as training on specific work-related hazards, hazardous activities, or hazardous situations |
Occupational health and safety training provided to workers, including generic training, as well as training on specific work-related hazards, hazardous activities, or hazardous situations include the following.
- General safety induction and re-induction of personnel. - Dissemination of safety, occupational health, environmental, and social management policies. - Hazard identification and occupational risk assessment. - Dissemination of safety events in other companies: lessons learned. - Use and handling of fire extinguishers. - Information on occupational insurance. - Use of the Pre-use checklist and other management tools. - Limits and speed control in vehicles. - Thunderstorms: evacuation procedure. - Emergency communications. - Emergency response booklet. - Altitude sickness. - Covid-19 emergency response booklet. - Code of Conduct. - Internal Work Regulations. - Internal Safety Regulations. |
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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 |
20 |
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In 2023, 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) workers who are not employees (contractors) |
16 |
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Security, Human Rights and Rights of Indigenous People |
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Describe the nature of any social risks, for all operating countries, that could have a material impact on the operations |
Please see the attached document for a description of the social risks related to the Fenix Gold Project. |
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Rio2 - 2023 Social Risks Report |
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Percentage of proved reserves that are located in or near areas of active conflict |
0.0000% |
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Percentage of probable reserves that are located in or near areas of active conflict |
0.0000% |
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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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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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No percentage of probable reserves are located in or near areas that are considered to be Indigenous peoples’ land. |
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Which indigenous rights of communities in which the entity operates or intends to operate are respected, provide a description of the entity's due diligence practices and procedures in the details. |
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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Which human rights procedures the entity's due diligence practices include, provide description in the details |
• Implementation of Voluntary Principles on Security and Human Rights • Other, please specify |
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Please see attached description of human rights procedures applied by the Company . |
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Rio2 Human Rights Procedures |
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Discuss the practices and procedures while operating in areas of conflict, describing the approach according to the Five-Step Framework outlined in the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas |
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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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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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 2023 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 Rel Programs 3 Year |
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Risks and Opportunities |
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Disclose the total number of site shutdowns or project delays due to non-technical factors |
0 |
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Disclose the total aggregate duration (in days) of site shutdowns or project delays due to non-technical factors |
0 |
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Governance |
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Governance structure and composition |
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Describe the governance structure, including committees of the highest governance body (e.g. the Board of Directors, the Executives, the Board Environment Committee, Board Safety Committee, the Advisory Committee, etc.) |
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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Identify and list the committees of the highest governance body that are responsible for decision making and overseeing the management of the organization’s impacts on the economy, environment and people including the oversight of sustainability-related risks and opportunities (e.g. Board level Environment Committee, Safety Committee, ESG Committee, Advisory Committee, etc.) |
The 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 the 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, CEO's role, CFO's role, Sustanability Executive, etc.) |
Yes, the Health, Safety, Environment, and Social Responsibility Committee of the Board of Directors is the highest governance body charged with overseeing the company's performance on ESG issues. |
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Describe whether the highest governance body has delegated responsibility for the management of impacts to other employees |
The Company's Board of Directors has delegated responsibility for managing ESG issues to the CEO. |
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Climate-related disclosures |
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Management's role |
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Provide the highest management-level position(s) or committee(s) with responsibility for climate-related policies, strategies and 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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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 (see instructions). |
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 |
Internationally recognized human rights covered by the Code include:
* 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 the attached Corporate policies for more details. |
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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 employees, 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 on how to behave and how to expect their teams to behave. |
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What implementation training does the organization provide |
The Company provides annual in-person and online training. |
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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 (non-independent) |
2 |
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Number of non-executive members (non-independent) |
0 |
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Number of independent members |
5 |
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The total number of governance body members |
7 |
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Percentage of independent board members |
71.4286% |
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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 to 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 Non-Binary 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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2023 Rio2 Board Composition |
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2023 Rio2 Board Competencies |
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Description of stakeholder representation, including employees and other workers |
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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Highest Governance Body |
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Describe the nomination and selection processes for the highest governance body and its committees |
Shareholders of the Company vote on the appointment of candidates to the Board proposed by Rio2 at the annual general meeting of shareholders. |
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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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Report the criteria used for nominating and selecting highest governance body members |
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Discuss whether and how diversity is considered |
The Board thoroughly considers any new director nominees, including an evaluation of the skills and experience of the current directors, determining the gaps in skills and experience that exist and finding potential candidates to fill those gaps and round out the skills and experience of the Board as a whole. Diversity (including the representation of women on the Board and in executive officer positions) is a factor considered in determining the optimum composition of the Board. The final recommendation for nomination or appointment to the Board has been based on the best combination of skills and experience for the position, with due regard for the benefits of diversity on the Board. |
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Discuss whether and how independence is considered |
The Board is currently comprised of five independent directors and two directors who are not considered to be independent. NI 58- 101 recommends that the Board of a public company should be constituted with a majority of individuals who qualify as “independent” directors. An “independent” director is a director who has no direct or indirect material relationship with the Company. A material relationship is a relationship that could, in the view of the Board, reasonably interfere with the exercise of a director’s independent judgment. The Board is responsible for assessing director independence. The Board has assessed the independence of each director in accordance with National Instrument 58-101 and NI 52-110. Following this assessment, the Board of Directors concluded that Klaus Zeitler, Sidney Robinson, Ram Ramachandran, Albrecht Schneider, and Drago Kisic are all independent directors under NI 58-101. Alex Black, the Executive Chairman of the Board, and Andrew Cox, the President and Chief Executive Officer of the Company, are members of management and as a result, they are not independent directors. |
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Discuss whether and how competencies relevant to the impacts of the organization are considered |
In considering Board composition and to encourage an objective nomination process, the Board periodically assesses the size, structure and composition of the Board, taking into consideration current strengths, skills and experience of the Board, proposed retirements and the requirements and strategic direction of the Company. |
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Chair of the highest governance body |
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Is the chair of the highest governance body also a senior executive in the organization (non-independent) |
Yes |
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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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If the chair is also a senior executive, explain their function within the organization’s management, the reasons for this arrangement, and how conflicts of interest are prevented and mitigated |
Alex Black, is the Executive Chairman of the Board of Directors of Rio2 Limited; as such he is deemed not to be an independent director. As explained above, all board committee chairs are independent and the board is comprised of a majority of independent directors. |
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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. Rio2 has finalized the design of an intranet platform that provides 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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Are conflicts of interest disclosed to stakeholders |
Yes |
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Are there conflicts of interest related to: cross-board membership |
Yes |
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Are there conflicts of interest related to: cross-shareholding with suppliers and other stakeholders |
Yes |
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Are there conflicts of interest related to: existence of controlling shareholder |
Yes |
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Are there conflicts of interest related to: 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 2023. |
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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 2023 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 Executive Chairman, CEO and senior officers speak with stakeholders frequently and report on any feedback regarding economic, environmental, and social matters to the Board regularly. |
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Describe how the highest governance body considers the outcomes of these processes |
All issues requiring actions are identified, addressed, and reported regularly to the Board by the HSC Committee. |
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Ethics |
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Ethics and Integrity |
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Describe how individuals can seek advice on implementing the organization’s policies and practices for responsible business conduct |
The Company encourages employees to express their concerns through an open-door policy, where everyone can access and communicate with those responsible for addressing the concerns, claims, and complaints of employees. |
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Describe the mechanisms for individuals to raise concerns about the organization’s business conduct |
Procedures are in place in the business units to address claims, concerns, and complaints, including telephone communication channels, e-mails from those responsible for handling such claims, and the intranet. |
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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 that occurred 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 ($) |
0 |
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Total number of fines paid for instances of non-compliance with laws and regulations that occurred in the current reporting period |
0 |
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Total monetary value of fines for instances of non-compliance with laws and regulations that occurred in the current reporting period ($) |
0 |
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Total number of fines paid 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 ($Million) |
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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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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If applicable, discuss operations that are located in countries with low rankings in the index but present low business ethics risks; the entity may provide similar discussion for operations located in countries that do not have one of the 20 lowest rankings in the index but that present unique or high business ethics risks |
Not Applicable. |
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Anti-Corruption |
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Confirmed Incidents and Response |
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Total number and nature of confirmed incidents of corruption |
0 |
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Total number of Bribery cases |
0 |
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Total number of Lobbying cases |
0 |
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Total number of Extortion cases |
0 |
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Total number of Cronyism cases |
0 |
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Total number of Nepotism cases |
0 |
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Total number of Parochialism cases |
0 |
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Total number of Patronage cases |
0 |
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Total number of Influence peddling cases |
0 |
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Total number of Graft cases |
0 |
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Total number of Embezzlement cases |
0 |
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Total number of confirmed incidents in which employees were dismissed or disciplined for corruption |
0 |
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Total number of contracts terminated or not renewed with business partners due to corruption related violations |
0 |
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Number of public legal cases brought against the organization or its employees during the reporting period related to corruption and the outcomes of such cases |
0 |
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Communication and Training |
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Total number of governance body members that the organization's anti-corruption policies and procedures have been communicated to |
7 |
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Total percentage of governance body members that have been communicated to on anti-corruption |
100.0000% |
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Anti-corruption policies and procedures communication to direct employees by type: |
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Total percentage of the direct employees that have been communicated to on anti-corruption |
100.0000% |
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Percentage of senior management employees that have been communicated to on anti-corruption |
100.0000% |
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Percentage of middle management employees that have been communicated to on anti-corruption |
100.0000% |
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Percentage of administrative employees that have been communicated to on anti-corruption |
100.0000% |
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Total number of governance body members that have received training on anti-corruption |
7 |
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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 direct employees that has received training on anti-corruption, broken down by employee category and region |
26 |
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Total number of direct employees |
30 |
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Total percentage of direct employees that received training on anti-corruption |
100.0000% |
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Total number of senior management employees |
3 |
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Total number of middle management employees |
23 |
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Total number of technical employees |
0 |
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Total number of production employees |
0 |
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Total number of administrative employees |
0 |
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Communication of critical concerns |
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Describe whether and how critical concerns are communicated to the highest governance body |
It is possible for concerns and complaints to be communicated to the highest governance body through the communication mechanism established in the company's code of conduct, as well as in corporate policies. |
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Report the number of critical concerns that were communicated to the highest governance body during the reporting period |
0 |
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Remuneration |
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Report which of the following remuneration policies apply to the highest governance body and senior executives: |
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Fixed pay |
Yes |
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Senior executives have signed employment agreements with a fixed salary. Directors are compensated with a fixed retainer and meeting fees. |
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Variable pay |
No |
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Performance-based pay |
Yes |
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The Company reserves the ability to award performance-based bonuses. In 2023 the performance bonus was set at zero. |
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Equity-based pay |
Yes |
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During the reporting year, Rio2 paid compensation for directors and some officers with the issuance of common shares as approved by disinterested shareholders in special meeting. |
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Bonuses |
Yes |
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As disclosed above. |
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Deferred and vested shares |
Yes |
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Sign-on bonuses |
No |
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Recruitment incentive payments |
No |
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Termination payments |
Yes |
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Clawbacks |
No |
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Retirement benefits, including the difference between benefit schemes and contribution rates for the highest governance body, senior executives and all other employees |
No |
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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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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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Describe the process for designing its remuneration policies and for determining remuneration |
The Company has a compensation structure defined based on three key criteria:
1.- Internal Equity: which constitutes the relative value of their position (in terms of functions and responsibilities) within the organization, which includes: a) Know How: this is valued in relation to the experience that each person has in each position held, as well as in relation to the previous knowledge they possesses for the performance of their functions and consequently the achievement of the objectives. b) Problem solving: the ability to make decisions autonomously within the Company in order to solve and successfully face the challenges that exist in their area of responsibility. c) Responsibility for results: measured in the impact of costs and budget for which you are in charge and have responsibility for their approval and execution in relation to other positions within the Company.
2.- External competitiveness: this has allowed us to establish a real comparison between what the national sectorial labor market pays (comparable to your functions and responsibilities) and what Fenix Gold has defined to be able to compensate its workers economically in a competitive way, taking into consideration companies similar to Fenix Gold (mining project under development).
3.- Meritocracy: which helps us to compensate for good performance, which allows us to manage compensation variably. |
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Are independent members of the highest governance body or an independent remuneration committee overseeing the remuneration process |
No |
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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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Describe whether remuneration consultants are involved in determining remuneration and, if so, whether they are independent of the organization, its highest governance body and senior executives |
Non-independent consultants |
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Stakeholder Engagement |
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Report the organization’s approach to stakeholder engagement, including frequency of engagement by type |
Please refer to the attachment Stakeholder Engagement report below. |
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Provide a list of stakeholder groups engaged by the organization |
• Permanent or Full-time Employees • Temporary Employees (daily wage workers) • Investors • Financial Institution • Local communities • Local government bodies • National government bodies • Regulatory authorities • Suppliers and contractors • Consultants (professional services) |
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Report the basis for identifying and selecting stakeholders with whom to engage |
Rio2 defines a stakeholder as any individual or group with an interest in our business operations, projects, and achievements. Our stakeholders are deeply invested in Rio2's success, as their interests closely align with our business activities. We believe that our growth and success are intrinsically connected to the engagement and support of our stakeholders. |
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Report the purpose of the stakeholder engagement |
Please see attached disclosure. |
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Rio2 2023 Stakeholder Engagement Report |
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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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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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The approach to public policy advocacy on tax |
Rio2 does not engage in public policy advocacy on tax-related issues. |
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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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