Contributing Towards a More
Sustainable Future
NICKEL INDUSTRIES LIMITED and its controlled entities A.B.N. 44 127 510 589
2023
Sustainability Report
Table of Contents
About This Report | 2 |
Sustainability Performance Highlight | 4 |
Message from the Chairman | 6 |
Sustainability at Nickel Industries | 7 |
Sustainability Report 2023 Theme | 8 |
Sustainability Policy | 8 |
Sustainability Strategy | 10 |
Stakeholder Engagement & Material Topics | 11 |
Sustainability Governance | 15 |
Company Profile | 19 |
About the Company | 20 |
Vision, Mission & Values | 21 |
2023 Sustainability Milestones | 22 |
External Initiatives, Memberships, Rewards and Certification | 23 |
Economic Development | 26 |
Operations | 27 |
Direct Economic Value | 28 |
Supply Chain | 30 |
Indirect Economic Impact | 33 |
Environmental Stewardship | 35 |
Environmental Policy | 36 |
Emissions | 47 |
Energy | 48 |
Water and Effluent | 49 |
Waste | 53 |
Biodiversity | 55 |
Social Responsibility | 60 |
Human Capital Development | 62 |
Occupational Health and Safety | 65 |
Local Communities | 77 |
Ethical Business Practices | 84 |
Diversity and Equal Opportunity | 85 |
Anti-corruption | 92 |
Human Rights | 93 |
Independent Assurance Statement | 96 |
GRI Standards Content Index | 100 |
SASB: Metals and Mining | 110 |
Feedback Form | 111 |
Contributing Towards a More Sustainable Future
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Sustainability at | Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | |||
Nickel Industries | |||||
About This Report
Contributing Towards a More
Sustainable Future
The Nickel Industries Limited (Nickel Industries or the Company) 2023 Sustainability Report (Report) is the third sustainability report published by the Company and is a continuation of the previous year's report published in March 2023.
The Report demonstrates our commitment towards our stakeholders, reflecting our accountability to sustained, long-term growth, and our responsibility towards ESG and sustainability through a holistically integrated, multi-stakeholder approach.
This Report has been meticulously developed in accordance with key reporting principles, including stakeholder inclusiveness, materiality, completeness, accuracy, balance, clarity, comparability, reliability, and timeliness. It reflects the collaborative efforts of discussions held throughout 2023. The selection of this year's material topics aligns with the Company's corporate strategy and has received approval from the Board Directors. There is no restatement of information from the previous report.
The Company has reported the information cited in this GRI content index for the period 1st January 2023 to 31st December 2023 in accordance with the GRI Standards, along with the Metals and Mining (MM) Supplement Sector; Sustainability Accounting Standards Board (SASB) for Metals and Mining Standard; and the early adoption of the International Financial Reporting Standards (IFRS) Sustainability Disclosure Standards.
[2-3]
All the information presented in this Report is sourced directly from the Company and its affiliated entities, encompassing Hengjaya Mine, Hengjaya Nickel, Ranger Nickel, Angel Nickel, and Oracle Nickel. KPMG, functioning as an independent auditor, has conducted an audit of the Company's Consolidated Financial Statements. Furthermore, SR Asia Indonesia, a leading sustainability assurance provider in the region, has independently verified the compliance of the Report with selected information regarding the Company's sustainability performance. The selection of the assurance provider followed a procurement process and has been approved by the highest governance body.
Contact information regarding this report: [2-3]
Nickel Industries Limited
Level 2, 66 Hunter Street, Sydney, NSW, 2000, Australia
+61 (2) 9300 3311 | info@nickelindustries.com | https://nickelindustries.com/ |
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Contributing Towards a More Sustainable Future
Sustainability at | Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | |||
Nickel Industries | |||||
Disclaimer
This Report incorporates forward-looking statements that adhere to the prevailing regulatory laws in applicable jurisdictions. Forward-looking statements can generally be identified by the use of words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "targets", "outlook" and "guidance", or other similar words. This may encompass, without limitation, statements regarding estimated reserves and resources, certain plans, strategies, aspirations and objectives of management, anticipated production, study or construction dates, expected costs, cash flow or production outputs and anticipated productive lives of projects and mines. However, these statements are subject to prospective risks and uncertainties and may cause actual developments to differ materially from the reported results.
The forward-looking statements within this Report were prepared based on a multitude of assumptions concerning present conditions, future events, and the business environment in which the Company operates. The Company shall have no obligation to guarantee that all the valid information presented will bring the specific results as expected.
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Sustainability at | Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | |||
Nickel Industries | |||||
Sustainability Performance Highlights
Economic Development Highlights
Production Performance | Financial Performance (USD) | ||||||||||||||||||||||||
Nickel Metal Production | Total Revenue | ||||||||||||||||||||||||
Tonnes | |||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||
40,410 | 2021 | 648,722,106 | |||||||||||||||||||||||
2022 | 70,079 | 2022 | 1,218,454,145 | ||||||||||||||||||||||
2023 | 128,259 | 2023 | 1,440,860,750 | ||||||||||||||||||||||
Limonite Ore | Total Assets | ||||||||||||||||||||||||
Tonnes | |||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||
2,090,879 | 2021 | 1,770,618,822 | |||||||||||||||||||||||
2022 | 3,902,276 | 2022 | 2,672,519,694 | ||||||||||||||||||||||
2023 | 9,568,456 | 2023 | 4,071,345,782 | ||||||||||||||||||||||
Saprolite Ore | Total Net Profit | After Tax | |||||||||||||||||||||||
Tonnes | |||||||||||||||||||||||||
2021 | |||||||||||||||||||||||||
2,457,694 | 2021 | 175,976,986 | |||||||||||||||||||||||
2022 | 2,890,575 | 2022 | 209,374,698 | ||||||||||||||||||||||
2023 | 3,832,833 | 2023 | 176,203,376 | ||||||||||||||||||||||
Environmental Performance
Environmental Performance | Rehabilitated Land Area at Hengjaya Mine | ||||||||||||
Green House Gas (GHG) Emissions (Scope 1 & 2) | Rehabilitated Land Area at Hengjaya Mine | ||||||||||||
Tonnes CO2eq | Ha | ||||||||||||
2021 | |||||||||||||
2,101,051 | 2021 | 14.49 | |||||||||||
2022 | 3,584,263 | 2022 | 20.15 | ||||||||||
2023 | 6,633,819 | 2023 | 25.00 | ||||||||||
Emissions Intensity | |||||||||||||
Total Rehabilitated Area | Total Trees Planted Since | ||||||||||||
tCO2e/tonne of Ni | |||||||||||||
Since 2019 (Ha): | 2019 (Ha): | ||||||||||||
2021 | 64.99 | ||||||||||||
2,057 | 2,257,036 | ||||||||||||
2022 | 63.93 | ||||||||||||
2023 | 64.65 | ||||||||||||
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Contributing Towards a More Sustainable Future
Sustainability at Nickel Industries
Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | ||
Nickel Industries pledged to a 50% reduction in carbon intensity by 2035 and net zero emissions by 2050 during the 2023 United Nations Climate Change Conference (COP 28).
For the second consecutive year. Nickel Industries' Hengjaya Mine has succeeded in winning the Green PROPER award for the second time and getting the highest grade for the sustainability initiative in the nickel industries in Indonesia from the Ministry of Environment and Forestry (KLHK) in 2023
Social Responsibility Highlights
16,718,448 LTI-free man hours across all of Nickel Industries' projects were achieved in 2023.
Nickel Industries Employee Diversity | |||||||||
<30 years old | 30-50 years old | >50 years old | Total | ||||||
2023 | 3,255 | 2023 | 1,664 | 2023 | 18 | 2023 | 4,937 | ||
2022 | 2,511 | 2022 | 1,421 | 2022 | 22 | 2022 | 3,654 | ||
Male | 2021 | 794 | 2021 | 540 | 2021 | 9 | Male | 2021 | 1,343 |
2023 | 388 | 2023 | 153 | 2023 | 0 | |
2022 | 334 | 2022 | 120 | 2022 | 3 | |
Female | 2021 | 122 | 2021 | 39 | 2021 | 1 |
2023 | 541 | |
2022 | 457 | |
Female | 2021 | 162 |
Grand Total | 2023 | 5,478 | 2022 | 4,441 | 2021 | 1,505 |
Nickel Industries and The Cross Sector Development Partnership entered into a two-year partnership and sponsorship agreement aimed at supporting the identification of social development projects aligned with the Company's ESG development and implementation strategy. Additionally, the Company has signed a Memorandum of Understanding with Hasanuddin University
Makassar to provide financial support to indigenous students from Central Sulawesi, North Maluku, and West Papua Provinces. This collaboration envisions offering full scholarship funding to students throughout their degree, focusing on undergraduate programs in metallurgical, environmental, and mining engineering.
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Sustainability at | Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | |||
Nickel Industries | |||||
Message from the Chairman [2-22]
Dear Fellow Shareholders,
I am pleased to present our 2023 Sustainability Report to you. This year's report holds particular significance as it marks numerous milestones in our sustainability journey. The growth in our sustainability initiatives from 2023 compared to our inaugural report in 2021 has been remarkable.
Nickel Industries proudly assumes leadership in advancing sustainability within Indonesia's nickel sector. We are honoured to showcase these initiatives in our Sustainability Report. Our commitment extends to promoting and implementing industry best practices across our mining and downstream processing operations, with steadfast support from the local communities in which we operate.
One of the most important goals of the Company is to reduce our carbon footprint. In December 2023, Nickel Industries announced its emission reduction target in conjunction with the COP28 United Nations Climate Change Conference. The Company unveiled its commitment to a 50% reduction in carbon intensity by 2035 and achieving net zero emissions by 2050. Our presence at the conference, where we were one of only two companies with Indonesian mining operations invited to present, underscores our dedication to becoming the world's pre-eminent global nickel company. This is underpinned by a platform of diversified, low-cost, sustainably produced nickel products, adhering to global best practice mining standards.
In pursuit of this commitment, Nickel Industries implemented several initiatives this year. In October 2023, we signed an Operation Lease and Service Agreement (OLSA) with PT Sumber Energi Surya Nusantara (SESNA) for the installation of
- 200-MWpsolar project with a 20-MWh battery to power our operations in Indonesia. This initiative positions us as the sole offtake partner to the project. In December 2023, we added Electric Vehicles (EV) to our haulage fleet at Hengjaya Mine, which marked a significant step towards driving operational efficiencies and materially reducing our emissions profile.
Furthermore, we continue to expand our portfolio of high pressure acid leach (HPAL) projects. This includes a positive final investment decision to invest in Excelsior Nickel Cobalt (ENC), a next-generation HPAL project capable of producing MHP, nickel sulphate, and nickel cathode. Each incremental unit of HPAL nickel production contributes to reducing Nickel Industries' carbon intensity, which aims to see our operations on track to becoming carbon-neutral by 2050.
Our integrated and multi-stakeholder approach, strategic partnerships, and global reach give us the opportunity - and the responsibility - to spearhead sustainable change across our industry. Nickel Industries' efforts to reduce emissions are poised to establish a precedent, motivating other companies to adopt similar initiatives. As our journey towards sustainability continues, we affirm our commitment to transparently sharing our progress with you through this Sustainability Report.
I cordially invite you to read our report and gain insights into how we integrate environmental, social, and governance (ESG) best practices into every aspect of our operations. Your engagement in understanding our commitment to sustainability is integral to our collective progress.
Yours sincerely,
Norman Seckold
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Contributing Towards a More Sustainable Future
Sustainability at | Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | |||
Nickel Industries | |||||
01Sustainability at Nickel Industries
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Sustainability at | Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | |||
Nickel Industries | |||||
Sustainability Report 2023 Theme
Contributing Towards a More Sustainable Future
Nickel Industries recognises the importance of ESG and sustainability in our operations. As the Company enters its third year of sustainability reporting, Nickel Industries continues
to spearhead efforts to optimise its sustainability impacts. Embracing the theme "Contributing Towards a More Sustainable Future" in the 2023 report, the Company proudly showcases progress in resource management, emissions reduction, and
innovative sustainability practices. Our journey unfolds not just as a documentation of practices but as a narrative of resilience, innovation, and responsibility. Through transparency and accountability, Nickel Industries invites stakeholders to join us in reshaping industries and fostering a collective dedication to a brighter, more sustainable tomorrow.
Sustainability Policy [2-23, 2-24]
Nickel Industries' sustainability policy is centred on cultivating long-term values for the Company, local communities, and various stakeholders. As performing at a world-class level in sustainability is critical to our business success, the Company aspires to responsibly supply a pivotal base metal, essential for the planet's future growth, while concurrently championing environmental protection, social empowerment,
and enhancing the wellbeing of its workers, host communities, and regional neighbours.
The Company policy is rooted in three realms of influence: sustainable operations, stimulation of local development, and contribution to global sustainability. These dimensions serve as the foundation and guiding principles for formulating the Company's sustainability strategy and non-financial objectives and priorities, which are subject to annual evaluation and refinement. Upholding the Company's commitments in these domains is pivotal for ensuring continued access to resources, capital, and engaged employees, while fostering sustainable development both within its operational areas and on a global scale.
Moreover, the Company is committed to supporting the United Nations Sustainable Development Goals (SDGs) by actively contributing to the implementation of the SDGs on local, national, and global levels, all in alignment with its operational activities. The Company's aim is to work towards the accomplishment of these goals by the year 2030.
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Contributing Towards a More Sustainable Future
Sustainability at | Company Profile | Economic | Environmental | Social Responsibility | Ethical Business |
Development | Stewardship | Practices | |||
Nickel Industries | |||||
Policy | Sustainable operations |
Description
Nickel Industries will act responsibly across the life cycle of its activities, from project conception, through to execution and operation, to the closure of the Company's activities, respecting the local people and customs where it operates.
Commitments
- To meet or exceed the regulatory standards where the Company operates and continuously improve performance.
- To achieve zero harm to its employees, contractors and local communities by promoting active, genuine care inside and outside the Company.
- To continuously improve its activities, seeking increased efficiency in the use of natural resources.
- To manage risks and impacts by adopting elimination, mitigation, compensation, monitoring measures and maximising the positive benefits of our activities.
- To work with responsibility, ethics and transparency, engaging with its stakeholders.
Policy | Stimulation of local development |
Description
Beyond the management of its activities, the Company seeks to stimulate local socioeconomic development that sustainably contributes to the livelihoods and wellbeing of the communities and environment around Nickel Industries' areas of operation.
Commitments
- To support the development and hiring of local workforce and suppliers.
- To understand and monitor the key social and environmental indicators for the regions where we operate and make conscious decisions to improve social and environmental wellbeing in the most appropriate and meaningful ways.
- To develop programs related to social needs, with the long-term economic development vision, avoiding reactive social investments.
- To respect indigenous and local communities' connections to lands, waters and the environment and seek to develop mutually beneficial agreements with land-connected peoples, to promote engagement, free, prior and informed consultation and risk and impact evaluation.
Policy Contribution to global sustainability
DescriptionCommitments
Nickel Industries recognises its important role in addressing shared global challenges. Therefore, the Company will contribute to the dialogue and confrontation of the challenges in terms of sustainable development as appropriate to our scope of activities.
- To be transparent to the Company stakeholders in terms of governance, policy, procedures, practices, and performance.
- To contribute towards global goals related to the Company's business by continuously improving its operations and seeking partnerships, solutions, and technology to address sustainable development challenges.
- To contribute to creating a positive legacy for future generations, balancing the social, environmental and economic aspects of its business.
- To work with colleagues, partners and communities globally to deliver the products our customers need and learn from each other to improve the Company's performance.
- To promote active partnerships at international, national, regional and local levels based on mutual commitment and trust.
- To engage with our joint venture partners to share our practices and insights and learn from theirs.
- To recognise and respect diverse cultures, communities and points of view.
- To respect human rights and work with communities and organisations to create mutual value throughout and beyond the life of our operations.
- To strive to contribute to the SDGs.
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Disclaimer
Nickel Industries Ltd. published this content on 27 June 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 June 2024 00:47:10 UTC.