Atalaya Mining : Climate Change Report 2023

2023 Climate Change Report

Atalaya Mining plc

MARCH 18, 2024

Contents	•	Our Purpose
	•	Introduction
	•	Governance on Climate Change
	•	Risk Management
	•	Climate Change Risks,
		Opportunities and Strategy
	•	Metrics and Targets

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Our Purpose

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Atalaya Mining's purpose
OUR 2023 CLIMATE CHANGE REPORT
We are Atalaya Mining plc, a mining and development company involved in the production of copper
concentrate in Europe. Given the importance of copper for the energy transition, Atalaya Mining is
participating in the shift towards a more sustainable future. We strive to become a leading multi-asset
copper producer in Europe, maximising the potential value of our current low-risk assets and further
exploring new opportunities.
Copper supply is a key factor in achieving the Paris climate goals and in consolidating an economic
autonomy strategy. Our activity therefore is well positioned to play a fundamental role in the global, EU
and Spanish decarbonization strategy, providing the necessary ore for the energy transition and
contributing to economic independence.
In this context, sustainability is not just a key pillar of our growth strategy, but also a management
principle that is critical to develop mining activities with the responsibility that is required nowadays
to maintain the social license to operate.
Given our growth potential and leading position in Europe and considering the strategic importance of
copper production within the EU (copper is listed as one of the strategic "minerals" in the draft EU Raw
Materials Act) we aim to reinforce our market position and market value.
With this in mind, we issue this report in order to inform all stakeholders about the way in which
climate change related issues are governed and managed within our company, our current
performance, the works ongoing for the decarbonization of our business, the risks of climate change
(physical and transition) that we may face, and the efforts that we are considering to minimize their
potential impact.
When elaborating this report, we have followed the recommendations from the Task Force on	ALBERTO LAVANDEIRA
Climate-related Financial Disclosures (TCFD) as a framework reference.
Chief Executive Officer
	18 March 2024

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Introduction

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Introduction

ATALAYA MINING PLC

We are a mining and development company that is recognised as a prominent copper concentrate producer in Europe. Recognising the crucial role of copper in the energy transition, we are well positioned to support a more sustainable future.

Atalaya Mining plc is the parent company of several mining companies and projects. The current active operation (Proyecto Riotinto managed by Atalaya Riotinto Minera S.L.U.) includes the Cerro Colorado open pit mine and a modern 15Mtpa processing plant, which has the potential to become a processing hub for owned regional projects currently in the permitting stage. This asset comprises also an industrial plant nearing completion to produce high value metals from mixed concentrates of primary copper and zinc sulphides with E-LIX, a new metallurgical technology owned by Lain Tech Ltd.

Other entities mainly manage a number of projects in the exploration and permitting phases in polymetallic sulphide deposits, such as:

• Cobre San Rafael S.L., in charge of developing Atalaya Touro (Proyecto Touro, A Coruña province, NW Spain); currently in the permitting phase, and expected to become the Company's second key asset.
• Atalaya Masa Valverde, S.L.U. in charge of developing Masa Valverde project (Proyecto Masa Valverde), located in Valverde del Camino (Huelva, SW Spain).
• Atalaya Ossa Morena S.L.U., in charge of developing the Proyecto Extremadura located in Alconchel, (Badajoz, SW Spain).

Furthermore, up to 6 new exploration permits have been requested from the Junta de Andalucía (Regional Government) in the Pyrite Belt in the province of Huelva (SW Spain).

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Atalaya Mining's purpose

HIGHLIGHTS 2023

• Some of the results of our activities for Proyecto Riotinto (our production asset) in 2023 can be summarized as follows:

Ore processed	15.7 Mt
Cu Concentrate production	249,321 t
Cu Content in concentrate	51,667 t
Total Electricity Consumption	367,828,225 Kwh
Electricity intensity	23.29 Kwh/t ore processed
Total Fuel consumption	925,035 GJ
GHG Emissions Scope 1 (*)	5,449.31 tCO2eq
GHG Emissions Scope 2 (*)	100,049.28 tCO2eq
GHG Emissions Scope 3 (*)	262,159.84 tCO2eq
GHG Intensity Scope 1 & 2 (*)	0.42 tCO2eq/Cu Concentrate production
GHG Intensity Scope 1,2 &3 (*)	1.47 tCO2eq/Cu Concentrate production

* At the time of issue of this report, the verification of the 2023 GHG emissions was in progress, so this data might experience small variation

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Introduction

ATALAYA MINING CLIMATE CHANGE COMMITMENT

At Atalaya Mining we believe that climate change is one of the biggest challenges of our era. Combatting the impacts of climate change will require large volumes of investment and global action. Atalaya is committed to disclose transparently about our efforts and actions against climate change through this Climate Report. In line with international best practice, we are using the Recommendations of the Task Force on Climate-relatedFinancial Disclosures, as a guideline for disclosure1.

We believe climate change entails risks and opportunities to our current business model. By addressing climate change risks in the correct way, we can create opportunities and move towards a low-carbon company. To frame this ambition, the Sustainability Policy of Atalaya Mining emphasizes our approach to "Integrate climate change risks and opportunities into our business strategy, including a commitment to reduce our greenhouse gas (GHG) emissions, through a robust system of governance, risk management and the setting of objectives, targets and performance monitoring indicators".

Accordingly, during 2023, and under the supervision of the Sustainability Committee of the Board of Directors, we developed a first climate-relatedrisk assessment was developed, using 2022 as baseline year. In this report, we provide information about the risks and opportunities identified. Subsequently we also published our climate change

goals that can be summarized as an objective to reduce Proyecto Riotinto Scope 1 and 2 emissions by 30% in 2025 and by 50% by 2030 considering 2022 as baseline year.

In this context, our big step forward in terms of reducing greenhouse gas (GHG) emissions is based in the switch of energy source and increase our consumption of renewable energy as a primary contributor to our carbon footprint, In this sense, we are nearing completion of the construction of a 50 MW solar plant for self-consumptionof renewable energy which is coming into operation during 2024.

This initiative not only helps decarbonizing our activities but also it makes business sense. Thus, Proyecto Riotinto is also evaluating further sources of producing green electricity for self-consumption. Furthermore, our Proyecto Touro in NW Spain (currently in permitting stage) includes also the development of a solar photovoltaic plant as part of the project development.

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(1) This reports follow the Recommendations strcuture for Climate Change information. However, not all the ítems in TCFD are
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Introduction

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

Global warming caused by the increase in greenhouse gas (GHG) emissions in recent decades poses

great challenges in the medium and long term to the world economy. Due to the complexity of

the risks that climate can cause in different economic sectors, it is very difficult to know exactly the impacts that companies will be exposed to.

The Financial Stability Board (FSB), created by the G20 in 2015, concluded that there was insufficient information in the market to assess climate risk in investment and lending decisions. The Task Force on Climate-relatedFinancial Disclosures (TCFD) was established in 2017 to answer this question with the ask to develop climate-related disclosures that "could promote more

informed investment, credit [or lending], and insurance underwriting decisions" and "allow stakeholders to better understand carbon-related asset concentrations in the financial sector and financial system exposures to climate-related risks."

The TCFD recommendations published in June 2017 were designed to provide a framework for companies to disclose critical climate-related financial information to help increase consistency and comparability around the world. They have been adopted in 19 jurisdictions and by more 4,800 organizations indicating that TCFD's recommendations have become, de facto, the standard reporting framework for climate change risks and opportunities for businesses.

At Atalaya Mining, we use the recommendations of the TCFD for the evaluation, selection and quantification of risks and opportunities related to climate change at asset (Proyecto Riotinto) and group level.

Source:About | Task Force onClimate-RelatedFinancial Disclosures (TCFD)(fsb-tcfd.org)

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Introduction

FRAMEWORK FOR DISCLOSURE

The TCFD developed recommendations on climate-related financial disclosure that are applicable to organizations across all sectors and jurisdictions.

TCFD is structured into four pillars, with 11 recommended disclosures associated with the

pillars, as shown below.

Source: Implementing the Recommendations of the Task Force on Climate-related Financial Disclosures

Although the TCFD recommendations remain voluntary, they are becoming mandatory in many countries. Also, the EU Corporate Sustainability Reporting Directive (EU 2022/2464) has established a reconciliation table between the respective requirements which are similar.

Regulation in Spain

Specifically in Spain, the Law 7/2021 on Climate Change and Energy Transition and the Project of Royal Decree of Law 7/2021 require companies to disclose on climate change related matters.

Besides the requirements imposed by EU CSRD, Law 7/2021 on Climate Change and Energy Transition aims to ensure compliance with the objectives of the Paris Agreement. Specifically, article 32 of this law will oblige certain organizations, such as those required to disclose their non-financial information, to report on the financial implications of Climate Change research and development. This law proposes a structure of the contents to be reported, which is closely aligned with the recommendations of the TCFD.

Project of Royal Degree under Spain legislation - article

32.5 of the 7/2021 Law

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