First Quantum Minerals : 2024 Climate Change Report

Published: 2025-05-15 09:45:13 ET FM.TO

Published on 05/15/2025 at 09:45

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD) ALIGNED

Climate Change Report May 2025

First Quantum Minerals Climate Change Report 2024

‌Contents

Message from the CEO 1

Climate change strategy 2

Our climate change commitments 3

Pillars of our climate change strategy 4

Climate change 2035 target and how 5

we are going to get there

Performance and outlook 7

GHG and energy metrics 9

Scope 3 emissions breakdown 10

Governance 11

Empowering communities 13

for climate resilience

The vital role of copper 6

Physical resilience 15

Our climate change commitments p. 3

Risk management 16

Climate risk management process 16

Scenario analysis 17

Physical risk analysis 18

Transition risk analysis 21

Methodology 23

Cautionary statement on 24

forward-looking information

First Quantum Minerals Climate Change Report 2024

‌Message from the CEO

At First Quantum (or "the Company"), we began 2024 with a clear sense of purpose - focused on ensuring the resilience of our business while contributing positively to the communities and countries in which we operate. Despite the challenges we faced this year, our commitment to climate action and responsible mining has remained firm.

2024 was a year of significant challenge and resilience for First Quantum. In Zambia, prolonged drought conditions continued to affect food security and electricity generation across the country, resulting in the 100% renewable power purchase agreement, we signed with ZESCO in November 2023, being

placed under force majeure. To maintain operational continuity, we proactively sourced power from third-party traders in Southern Africa, which as a result, has temporarily shifted to an increased mix of non-renewable energy that

has impacted our greenhouse gas emissions profile in Zambia. While these measures have temporarily altered our energy mix in Zambia, they were critical to sustaining operations and, importantly, have helped enhance access to more affordable power for the country.

At Cobre Panamá, operations remained in a state of Preservation and Safe Management following instructions from the Government of Panama in late 2023. This has introduced uncertainty around the timing of our planned transition away from coal-fired power-a key element

of our decarbonization strategy.

These external factors have prompted us to take a necessary and strategic review of our decarbonization pathway. With the drought's effects on power-generation in Zambia expected to persist into 2025, and given the lack of clarity with respect to Cobre Panamá, we have updated our greenhouse gas (GHG) emissions targets to a 50% reduction in absolute Scope 1 and 2 GHG emissions, and in CO₂e intensity of copper production, by 2035 from 2020 levels.

Our long-term commitment to the environment and our communities remains a priority. This revised target reflects our responsibility to set goals that are both ambitious and achievable, as we strive for tangible progress.

We believe this is the most credible and responsible approach given the evolving circumstances.

We have continued to invest in technologies to reduce our emissions intensity, drive energy efficiency in our operations, and engage closely with governments and communities to

find sustainable, long-term solutions. In Zambia, we are progressing the development of a 430 MW wind and solar project in partnership with TotalEnergies, which is on track for commissioning by the end of the decade. In addition, the Company advanced a 10-year offtake agreement with a power trader for a 100 MW domestic solar installation, scheduled for commissioning later this year-an important step toward a just transition to a cleaner energy future.

We are accelerating efforts across our operations to identify and implement energy efficiency initiatives and innovative solutions to reduce

our environmental footprint.

This is evident in the ongoing trial of the world's largest ultra-class battery electric haul truck at our Kansanshi mine, which began in July 2024. The trial has already demonstrated promising results, particularly in

its integration with our Quantum Electra-Haul™ trolley-assist technology.

The challenges we face as a business present an opportunity to recalibrate and refocus - building a stronger, more resilient strategy that supports

a sustainable future for our company, our stakeholders, and the communities where we operate.

TRISTAN PASCALL

Chief Executive Officer

First Quantum Minerals Climate Change Report 2024

‌Climate change strategy

At First Quantum Minerals Ltd. (or "the Company"), we are committed to extracting resources responsibly, while expanding our portfolio and delivering production growth with a lower carbon intensity. We are well placed to

deliver the energy metals needed to drive the global low-carbon transition and socio-economic development. This commitment not only aligns with our

business goals but also emphasizes the importance of a just transition, ensuring that the benefits of our sustainable practices contribute to the well-being of communities and foster inclusive socio-economic growth.

Secured agreement for 100% renewable power* for Trident and Kansanshi in Zambia - implementation currently delayed under force majeure - and advancing a 10-year offtake agreement with a power trader for a 100 MW domestic solar installation scheduled for commissioning in 2025.

Steady progress on the 430 MW wind and solar project in Zambia, with First Quantum as the offtaker, together with new hydropower developments in Zambia's Northwest and Northern Provinces, all on schedule for commissioning by 2028.

Forging a technology partnership with Hitachi Construction Machinary to develop battery-powered dump trucks at the Kansanshi mine.

Leveraging in-house expertise to deliver sustainable benefits through innovation

including trolley-assist, in-pit crushing and conveying,

waste oil recycling and a newly installed rail-driven conveyor system that is expected to reduce electricity consumption at Sentinel.

Continuous development to refine and expand our Scope 3 GHG emissions reporting which were disclosed for the first time in 2023.

* In 2024, following the declaration of a national emergency in Zambia due to a drought exacerbated by El Nino and a subsequent request from ZESCO to reduce power by around 20% across both Zambian operations, the Company sourced supplementary electricity from regional third-party traders to maintain operational stability. The Company does not anticipate a full return to normal ZESCO generation in 2025 and will continue its supplementary sourcing strategy, including for the Kansanshi S3 expansion at start-up.

‌First Quantum Minerals Climate Change Report 2024

Our climate change commitments

Improve efficiency, reduce energy intensity, wastage and emissions by leveraging our innovative culture to adopt new technologies as they become commercially viable.

Prioritize use of renewable energy sources for new and existing operations where they are achievable.

Internal carbon pricing is integrated into the evaluation of new projects.

Consider ongoing partnerships with suppliers and customers on emissions and how to reduce the carbon footprint.

Continue to set tangible targets through the execution of real projects.

Ensure resilience to climate change through the identification and management of climate-related risks through effective mitigating measures. The Company plans

to invest appropriately to improve the climate resilience of our operations.

Commitment to ongoing development and transparency of climate change reporting and progress in achievement of targets.

Continued engagement with stakeholders on climate actions and progress.

Continue to develop an understanding of lifecycle emissions of the value chain as well as improve data quality and refine our Scope 3 emissions calculations for greater reliability in our reporting.

Disclaimer

First Quantum Minerals Ltd. published this content on May 15, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 15, 2025 at 13:44 UTC.