Energy & Climate change

Environment

Energy & Climate Change

Resolute recognises the challenges that climate change presents and its role in supporting the goals of the Paris Agreement to limit the increase in global average temperatures to 2°C and transition towards carbon neutrality by 2050 (or sooner).

The Company acknowledges that gold mining is an energy and water intensive process, and that reducing energy and water consumption and associated costs are a key element to continued business success. Resolute also acknowledges this will require an adaptive approach to the management of mining operations and the business more broadly.

The Sustainability Committee has oversight on climate change, which is a standing item on the agenda. Resolute published a Climate Change Statement with a commitment to become carbon neutral by 2050, in line with industry. In support of this, Resolute developed an Interim Climate Change Strategy 2021-2023 and accompanying action plan with a focus on improving the governance of climate-related issues, identifying and mitigating material climate-related risks, measuring and reducing impacts on climate change, engaging with stakeholders, and improving climate-related disclosures and reporting.

At Resolute’s mine sites, GHG emissions are predominantly produced from diesel consumption to provide electricity, for transportation and for mobile equipment use. At both Syama and Mako, there is no grid connection within the vicinity of the sites, and limited potential for direct investment in renewable energy due to topography, land access, life of mine and other challenges.

At Mako, electricity is generated via an on-site 14MW diesel power station which comprises eleven 805kW 415V Generating units. At Syama, a power station was commissioned in 2021 to reduce both power generation costs and GHG emissions. The plant includes the installation of three new thermal energy Modular Block generators providing 30MW of energy to the operation, the construction of a heavy fuel oil facility and the construction of a 10MW battery storage system providing spinning reserve displacement, to counterbalance sudden variations in load. The power station is expected to reduce GHG emissions at Syama by 20% and costs of energy by 40% ensuring both reduced environmental impact and long-term sustainability of the mine site. Resolute’s Total non-renewable energy consumption in 2022 was 249,570 MWh.

Resolute has been disclosing its Scope 1 and 2 GHG emissions since 2019, and Scope 3 emissions since 2020. These are calculated using the GHG Protocol Corporate Accounting and Reporting Standard.