FULLTEXT DEL 3 AV 5
Årsredovisning 2025
Resources
The Company allocates financial, human and operational resources through its annual budgeting and operational planning processes to manage and mitigate material water-related impacts identified
through the DMA. Human resources included are dedicated social performance personnel at site and Corporate levels, supported by specialist functions where required. Operational resources support
the implementation of water-management actions, including site-level monitoring, operational controls and mitigation measures, with associated expenditures tracked as part of routine operational
budgets.
Expenditures related to individual water-management actions are integrated within broader site operating budgets and are therefore not separately disclosed on a quantitative basis in this Sustainability
Statement.
Targets related to water and marine resources
LMC has not developed consolidated long-term targets related to water and marine resources. Management of this topic is embedded within the Company’s governance framework and is addressed
through the implementation of policies, site-level management and ongoing monitoring of performance through company-wide annual performance objectives. All operations have individual objectives
for water management, on the basis of their regulatory requirements all of which vary for each mine site. Compliance is verified by local or regional authorities.
Company-wide performance objectives are approved by the HRCC (with input from the SSTC as appropriate) and, insofar as they apply to the CEO, by the Board. The performance objective related to
water and marine resources is embedded in our commitment to improve incident management at sites. In 2025, LMC’s performance objective was zero level 3 or above sustainability incidents16 as well
as advancement of the water management plan at Chapada. This objective, specific to water, was achieved as there were no level 3 incidents related to water in 2025 and the Company successfully
advanced water management plan at Chapada by completing its water treatment plant ahead of schedule.
Metrics related to water and marine resources
Our sites rely on a range of sources for their operational and potable water needs. Annual precipitation and evapotranspiration patterns strongly influence how water is managed. Some operations have
excess water due to higher precipitation, while others have seasonal variations or arid conditions. A significant proportion of rainfall and snowmelt received by our sites is necessarily managed but not
used. We supplement recycled process water from our tailings and leach facilities with desalinated water, groundwater from wellfields, groundwater inflows to mine workings and meteoric water that
falls on the sites.
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16 Lundin Mining identifies and assesses the impact of incidents through its Sustainability Incident Management Standard. Sustainability incidents are classified based on a five-tier scale, from level 1
incidents that are common in the normal course of operations and present minimal social or environmental impacts, to level 5 incidents that present immediate, wide-spread, and significant social or
environmental impacts.
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Water consumption
(m3)
Operated Assets Joint
Operation
Total 2025
Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan Vicuña
Project
Total water consumption 11,175,396 12,415,011 33,455,764 153,926 1,080,010 258,703 159,226 58,180,630
Total water consumption
in areas of water risk,
including high-stress
areas
11,175,396 12,415,011 N/A N/A 200,06317 N/A 159,226 23,949,695
Metrics methodologies and assumptions
- Water consumption: The amount of water drawn into the boundaries of the undertaking (or facility) and not discharged back to the water environment or a third party over the course of the reporting
period. This aligns with International Council on Mining and Metals ("ICMM") total consumption definition: all water that is removed by evaporation, entrainment (in product or waste) or other losses,
and not released back to surface water, groundwater, seawater or a third party. Includes water that has been stored during the reporting period for use or discharge in a subsequent reporting period.
- Total water consumption = total withdrawal - total discharge - (+/- change in storage), where total withdrawal = operational water withdrawal + other managed water withdrawal.
- Water consumed in satellite offices is not considered material and is excluded.
- Water risk: Area at high water risk is determined according to WRI Aqueduct Water Risk Atlas - 'Overall Water Risk' is high (3-4) or extremely high (4-5). WRI definition: "Overall water risk measures all
water-related risks, by aggregating all selected indicators from the Physical Quantity, Quality and Regulatory & Reputational Risk categories. Higher values indicate higher water risk"Water stress:
Area of high-water stress is determined according to WRI Aqueduct Water Risk Atlas - 'Water Stress' is high (40-80%) or extremely high (>80%). Areas classified as "Arid and Low Water Use" are also
included.
- There were no changes in the corresponding metrics or underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
Water consumption intensity
2025
Water consumption intensity (m3/net revenue million USD) 13,00218
Metrics methodologies and assumptions
- Water consumption per net revenue is calculated as the total water consumption divided by the net revenue as reported in the financial statements. Reference revenue in Notes 3 and 19 of the
Consolidated Financial Statements.
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17 Neves-Corvo does not discharge water in a water-stressed catchment.
18 Water consumption intensity includes Continuing and Discontinued Operations. The Joint Operation is excluded. The intensity of Discontinued Operations is 2,383.
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- Net revenue is revenue as presented in the Consolidated Financial Statements and prepared in accordance with IFRS 15.
- Intensity ratios allow the analysis of water consumption in the context of an organization-specific metric. Metrics can be impacted by factors that do not necessarily relate to operational efficiencies;
consequently, interpretation of intensity data requires careful consideration.
- There were no changes in the corresponding metrics or underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
Total water withdrawals by source and quality
Source
Water withdrawals and water quality Water withdrawals in areas of water risk (including areas of high-water stress) and water quality
Total water
withdrawal
(m3)
Freshwater
(≤1000 mg/L/TDS)
(m3)
Other water
(>1000 mg/L TDS)
(m3)
Total
water withdrawal in areas of
high-water stress
(m3)
Freshwater
(≤1000 mg/L/TDS)
(m3)
Other water
(>1000 mg/L TDS)
(m3)
Surface Water 2,160,900 2,149,234 11,666 77,753 66,087 11,666
Seawater 23,785,510 — 23,785,510 23,785,510 — 23,785,510
Groundwater 19,944,323 18,460,644 1,483,679 12,786,788 11,589,821 1,196,967
Produced Water 2,967,473 — 2,967,473 1,718,736 — 1,718,736
Third-Party Water 5,901,887 624,037 5,277,850 5,897,599 619,749 5,277,850
Collected Precipitation19 26,709,417 26,709,417 — 1,072,120 1,072,120 —
Total 2025 81,469,509 47,943,332 33,526,177 45,338,505 13,347,776 31,990,729
- Total freshwater withdrawal was dominated by precipitation capture, predominantly at Chapada, natural groundwater infiltration into our mines and the use of freshwater wells by some operations.
- Water withdrawal for operational purposes was primarily sourced from collected precipitation, followed by seawater and lastly groundwater.
- Most third-party water sources include desalinated water supplied by Caserones to local communities and potable water provided for employees and contractors. For water quality, seawater
abstraction at Candelaria’s desalination facility dominated the ‘other water’ category of withdrawals, with smaller contributions from Caserones’ provision of third-party desalinated water for
community use and the moisture that is naturally present in the ore entering our mills for processing (i.e., groundwater entrained in ore).
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19 Collected precipitation falls under the Surface Water category but was separated given its high proportion within this category.
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Total water withdrawals and quality disaggregated by operation
(m3)
Operated Assets Joint
Operation
Total
2025
Continuing
Operations
Discontinued
Operations
Vicuña
ProjectCandelaria Caserones Chapada Eagle Neves-
Corvo Zinkgruvan
Total water withdrawal 25,194,153 19,703,765 30,471,508 2,454,528 1,881,477 1,590,640 173,439 81,469,509
Freshwater (≤1000 mg/L/TDS) 352,927 12,566,580 29,282,559 2,445,642 1,841,260 1,292,592 161,773 47,943,333
Other water (>1000 mg/L TDS) 24,841,226 7,137,185 1,188,949 8,886 40,218 298,048 11,666 33,526,178
Water withdrawals in areas of water risk (including areas of high-water stress)
and water quality
Total water withdrawal in areas of high-water stress 25,194,153 19,703,765 N/A N/A 267,149 N/A 173,439 45,338,508
Freshwater (≤1000 mg/L/TDS) 352,927 12,566,580 N/A N/A 266,496 N/A 161,773 13,347,776
Other water (>1000 mg/L TDS) 24,841,226 7,137,185 N/A N/A 653 N/A 11,666 31,990,729
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===== SIDA 119 =====
Water discharges
Total water discharges by destination and quality
Water discharges and quality Water discharges in areas of water risk (including areas of high-water stress) and
water quality
Destination
Total water
Discharged
( m3)
Freshwater
(≤1000 mg/L TDS )
(m3)
Other Water
(>1000 mg/L TDS)
(m3)
Total water
Discharged
(m3)
Fresh Water
(≤1000 mg/L TDS)
(m3)
Other Water
(Quality >1000 mg/L TDS)
(m3)
Surface Water 4,279,641 4,013,139 266,503 — — —
Seawater 13,997,481 - 13,997,481 13,997,481 — 13,997,481
Groundwater 285,015 228,528 56,486 12,278 12,278 —
Third-Party Water 7,716,088 7,457,092 258,996 7,648,373 7,389,377 258,996
Produced Water — — — — — —
Collected Precipitation — — — — — —
Total 2025 26,278,226 11,698,760 14,579,466 21,658,132 7,401,655 14,256,477
- The mines at Candelaria are zero-discharge operations. Caserones is also a zero-discharge operation, only supplying withdrawn groundwater and third-party desalinated water for community use.
Eagle discharges treated water to the local surface water course at the mill site and through infiltration beds to groundwater at the mine site, under licence.
- Our total discharge over the last three years has been dominated by discharge to surface water and to the sea and at Caserones it is characterized as third-party return for community use Discharge
volumes vary according to factors including the quantity of ore milled, precipitation levels and volumes managed for environmental purposes.
- Discharge to the sea slightly increased in 2025 due to the higher seawater volumes withdrawn for desalination by Candelaria.
- Discharge to surface water was dominated in recent years by runoff and seepage from Chapada’s waste rock stockpiles due to the high rainfall and large surface areas involved. These volumes have
steadily decreased because of site works to intercept increasing volumes of surface water runoff for management in the operational water systems. By the end of 2025, all waste rock dump runoff
and seepage were intercepted and the discharge of ‘Other water’ quality from the site reduced accordingly.
- Following processing at Candelaria’s desalination facility, desalinated seawater is pumped to the mine, with the brine produced from the process being returned to the sea. As a result, Candelaria
dominates Lundin Mining’s total ‘Other water’ quality discharge.
Total water discharges and quality disaggregated by operation
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===== SIDA 120 =====
(m3)
Operated Assets
Joint Operation
Total 2025Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan Vicuña Project
Water discharges and quality
Total water Discharged 14,256,477 7,387,442 187,025 2,317,411 186,314 1,929,343 14,213 26,278,226
Freshwater (≤1000 mg/L/TDS) — 7,387,442 — 2,317,411 67,086 1,912,607 14,213 11,698,760
Other water (>1000 mg/L TDS) 14,256,477 — 187,025 — 119,228 16,736 — 14,579,466
Water discharges in areas of water risk
(including areas of high-water stress) and water quality
Total water Discharged 14,256,477 7,387,442 — - - - 14,213 21,658,132
Freshwater (≤1000 mg/L/TDS) — 7,387,442 — - - - 14,213 7,401,655
Other water (>1000 mg/L TDS) 14,256,477 — — - - - - 14,256,477
Metrics methodologies and assumptions
- Total water withdrawals: The sum of all water drawn into the boundaries of the undertaking from all sources for any use over the course of the reporting period.
- Water discharge: The sum of effluents and other water leaving the boundaries of the organization and released to surface water, groundwater, or third parties over the course of the reporting period.
- Water risk: Area at high water risk is determined according to WRI Aqueduct Water Risk Atlas - 'Overall Water Risk' is high (3-4) or extremely high (4-5).
- Water stress: Area of high-water stress is determined according to WRI Aqueduct Water Risk Atlas - 'Water Stress' is high (40-80%) or extremely high (>80%). Areas classified as "Arid and Low Water
Use" are also included.
- Freshwater: Water with a concentration of total dissolved solids (TDS) equal to or below 1,000 mg/L (as defined by GRI).
- Other water: Water with a concentration of total dissolved solids (TDS) above 1,000 mg/L (as defined by GRI).
- Produced water: Water that enters the Company's boundary as a result of extraction, processing, or use of any raw material, and has consequently be managed by the Company (as defined by GRI).
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
Number of Incidents of non-compliance with water discharge limits
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===== SIDA 121 =====
Operated Assets
Joint Operation Total 2025
Continuing Operations Discontinued Operations
Number of incidents of non-
compliance with water discharge
limits
2 3 — 5
The incidents of Continuing Operations are associated with uncontrolled discharges for which the site implemented corrective actions to prevent future events. For Discontinued Operations, the
incidents related to emergency discharges and overflow from a discharge pond.
Metrics methodologies and assumptions
- Discharge limits were based on Sites' water effluent quality parameters defined in their water discharge environmental permits and/or applicable local regulations.
- Water discharge: sum of effluents, used water, and unused water released to surface water, groundwater, seawater, or a third party, for which the Company has no further use, over the course of
the reporting period (as defined by GRI). Note that water can be released into the receiving waterbody either at a defined discharge point (point-source discharge) or dispersed over land in an
undefined manner(non-point-source discharge). Also, water discharge can be authorized or unauthorized.
- Effluent: treated or untreated wastewater that is discharged (as defined by GRI).
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
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Biodiversity and Ecosystems (ESRS E4)
Material impacts, risks and opportunities and their interaction with strategy and business model
Large scale mining operations (including those of Lundin Mining) and their value chains may give rise to impacts and risks related to biodiversity and ecosystems, reflecting the land-use requirements of
large-scale mining activities. As a producer of base metals, with copper production primarily located in Chile and Brazil, the Company operates predominantly in regions assessed as having lower
biodiversity sensitivity, with limited overlap with designated protected areas.
Biodiversity considerations are integrated into the Company’s business model through environmental impact assessments, land-use planning, and site-specific environmental permitting processes,
which establish requirements to manage and mitigate potential impacts on biodiversity and ecosystems throughout the life of mine. Compliance with these regulatory requirements, together with
operational environmental management systems, forms a key control framework for mitigating adverse biodiversity impacts.
Biodiversity and ecosystems have been identified as a material topic through the Company’s DMA. In accordance with the phase-in provisions (“quick fix”) permitted under the ESRS, the Company has
applied transitional relief in relation to certain detailed quantitative biodiversity metrics for the reporting year. Disclosures for the reporting year are presented in summary form. During the reporting
period, the Company has prioritised the identification and management of material biodiversity-related impacts, risks and dependencies through permitting, environmental impact assessments,
avoidance and mitigation measures, and incident management. The Company will continue to enhance its biodiversity reporting, including the development of more standardised quantitative metrics,
as methodologies mature and data availability improves.
Description and assessment of material Biodiversity and ecosystems impacts, risks and opportunities
The material IROs related to biodiversity and ecosystems have been identified through the DMA. The materiality assessment is discussed under General Information. Refer to the Material impacts, risks
and opportunities section for details about our process to identify material IROs. The table below includes the description of the material IROs related to biodiversity and ecosystems for Lundin Mining.
Description IRO Timeline
(ST, MT, LT) Value Chain
Land Use Change
LMC may experience increased costs related to mine closure and reclamation. In addition, preventative measures for ecosystem
protection and rehabilitation may result in substantial remediation costs.
Financial
materiality
(Risk)
Long term Own operations
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Our policies and approach
Governance
policies
Relation to the sustainability topic Approach
RMP, RMMS The policies and management system described are designed to prevent,
mitigate and manage the material impacts and financial risks related to
biodiversity and ecosystems, including impacts associated with land use
change, disturbance to habitats and species, and biodiversity-related permitting
and closure obligations.
The scope of these policies and related management measures aligns with the
value-chain boundary of the identified impacts and risks, which primarily relate
to Lundin Mining’s own operations, including activities located in proximity to
biodiversity-sensitive areas.
The RMP, addresses biodiversity management, promoting environmental
stewardship throughout the mining life cycle, emphasizing the responsible
management of natural resources, including biodiversity.
Our operational sites prepare and update biodiversity action plans and identify
biodiversity IROs to inform the development of site-level operational plans, in
alignment with our RMMS. Management of deforestation and habitat loss is
addressed directly by the mine sites in their management plans.
Our objectives for biodiversity management include integrating biodiversity-related
information and management systems, undertaking baseline studies to document conditions
prior to the development of new mines or significant expansions beyond a mine’s current
footprint, and monitoring the effectiveness of our biodiversity management programs.
Operations conduct routine flora, fauna and aquatic surveys, as appropriate, to identify
species of interest and to monitor habitat health, biodiversity and any changes that could
potentially be attributable to our operations. Supplementary surveys are undertaken
periodically to support new permit applications for extensions of a mine site footprint, with
relocation programs for selected species where required.
Tracking of
implementation and
effectiveness
The effectiveness of the policies and management systems in managing the identified biodiversity and ecosystem impacts and risks is monitored through a combination of site-
level environmental performance tracking, internal reviews and regulatory oversight. Information related to biodiversity management, incidents and compliance with
environmental permits is reviewed through established governance processes, with oversight by management and reporting to relevant Board committees as appropriate. These
monitoring activities support the identification of non-conformances and the implementation of corrective actions where required.
Other supporting systems:
Each site defines biodiversity practices in accordance with the RMP and the legal requirements of the jurisdiction in which it operates. Some sites also implement additional frameworks or approaches
to support their biodiversity approach in alignment with the RMP.
Candelaria has a biodiversity strategy and a biodiversity impact assessment as part of its EIA process. The site complies with the biodiversity monitoring process outlined in its environmental permits.
Eagle conducts annual flora, fauna, aquatic surveys, and threatened and endangered species assessments at both the mine and mill sites, including surrounding areas. These results are compared
against baseline surveys to determine if any changes have occurred that could be the result of mining operations. Environmental site assessments were also completed during the mining permit
application process, including evaluations of impacts on wildlife, aquatics and their associated habitats.
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Actions and resources related to biodiversity and ecosystems during the year
During the reporting period, the Company implemented site-specific actions as part of their ongoing management and mitigation of impacts on biodiversity and ecosystems.
At Candelaria, actions focused on marine biodiversity management associated with port and desalination activities. The operation also maintained marine rehabilitation programs aimed at supporting
the sustainable use and management of marine areas within its area of influence. Candelaria also continued its participation in the National Oceanographic Committee (CONA), collaborating with
academic and public institutions to support marine monitoring and information sharing. In addition, following the 2022 sinkhole, which impacted tree specimens, Candelaria has an ongoing monitoring
and maintenance requirement for compensatory replanting. The effectiveness of biodiversity and ecosystems-related actions is assessed through site-specific monitoring programs, including species
surveys, habitat condition indicators, survival rates of replanted vegetation, incident tracking and periodic review against permit conditions.
Caserones also has various ongoing activities to avoid impact to wildlife. “Slow for the fauna” is a campaign to raise awareness among drivers about the importance of driving in a high mountain
environment with the presence of native and domestic fauna. The campaign is delivered in places with significant numbers of workers and provides recommendations and preventive measures to avoid
harm to wildlife. The effectiveness is measured through surveys of employees and the number of incidents associated with wildlife collisions. The site also provides veterinarian support for affected
wildlife.
Chapada’s biodiversity actions are informed by the site’s location within a cerrado aberto baixo, or a low, open, savannah region of Brazil. Prior to the development of the mine, the land was zoned as a
legal reserve. When the zoning was changed to permit mining, the legal reserve was relocated approximately 23 km north of the site; this 1,650-hectare forest reserve is managed by Chapada as an
environmental education centre.
Chapada carries out regular surveys to monitor terrestrial fauna. The site monitors birds, mammals, amphibians and insects within directly affected areas, supervising progress with two main indexes:
species richness (total number of species in a sampling unit), and Shannon diversity (relationship between the richness and relative abundance of species). Chapada also monitors the aquatic biota to
maintain an updated database and support informed decision-making based on any detected changes. The site continued its implementation of a program to identify and manage contaminated areas.
The program, aims to identify possible areas with contaminated soils in accordance with the CONAMA20 420/2009, which outlines criteria and guiding values for soil quality. If the mapping process
detects the presence of metals in the evaluated soils, a human health and ecological risk assessment will be conducted, accompanied by a remediation plan.
Eagle collaborated with the Superior Watershed Partnership in the Northern Restoration Demonstration Area on property near its mine site. The project aims to determine the plant species that can
survive and enhance habitat diversity on Eagle-owned property to be reclaimed at mine closure. Additionally, the site has an invasive species control initiative that involves releasing targeted weevils to
manage invasive plants. The expected outcome is a multi-year decline in invasive plant presence.
The Vicuña Project has an ongoing collaboration with the National University of San Juan to protect plant diversity near the site. Vicuña provides the university with funding for collecting, recording and
studying plant diversity, and this partnership is helping to create a bank for seeds and plant tissues to use in important flora restoration in the area and possible future reclamation activities for the
project. It also provides university students with a unique opportunity to deepen their knowledge on Andean species that they might not otherwise have access to studying.
Biodiversity compensation measures were used in Candelaria. Caserones, Chapada and Eagle did not have any biodiversity compensation measures in their action plans.
Candelaria implemented biodiversity compensation measures to address identified residual impacts on native vegetation and shrub species of conservation concern associated with mining-related
infrastructure and operations in the Tierra Amarilla district, Chile. The site produces native trees and shrubs that are in a state of conservation, with the objective of compensating for 100% of affected
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20 National Environment Council (Brazil).
===== SIDA 125 =====
specimens. The measures consist of in-kind ecological compensation implemented in accordance with approved environmental permits, including area-based reforestation of native forest and species-
specific replacement of affected shrubs using regionally native species. A total native forest area of approximately 10 hectares has been established through compensatory planting. Monitoring results
demonstrate that survival rates for native tree plantations met or exceeded the 75% regulatory threshold at the conclusion of mandated monitoring periods. For shrub species classified under
conservation categories (Pintoa chilensis and Krameria cistoidea), compensation was implemented at a minimum 1:3 replacement ratio, with total plantings exceeding minimum replacement
requirements. Compliance with obligations is assessed against replacement and monitoring criteria defined in the applicable environmental approvals. Ongoing monitoring and maintenance activities
continue beyond minimum regulatory requirements where applicable.
Local and Indigenous knowledge and nature-based solutions have not been systematically incorporated into biodiversity-related actions during the reporting period. The Company recognises the
potential value of such approaches and will continue to assess opportunities for their inclusion where appropriate and relevant to site contexts.
Resources
Financial and human resources to manage biodiversity-related impacts are allocated through the company’s annual budgeting and operational planning processes. Spending on reclamation and
closure activities is expected to occur primarily at the end of each mine’s operating life. Information on reclamation costs is disclosed in the Note 15, Note 3, and Cash Flow Statement (page 5) of the
Consolidated Financial Statements.
Targets related to biodiversity and ecosystems
LMC has not developed consolidated long-term targets related to biodiversity. Management of this topic is embedded within the Company’s governance framework and is addressed through the
implementation of policies, site-level management and ongoing monitoring of performance through company-wide annual performance objectives. All operations have individual objectives for
biodiversity on the basis of their regulatory requirements all of which vary for each mine site. Compliance is verified by local or regional authorities.
Company-wide performance objectives are approved by the HRCC (with input from the SSTC as appropriate) and, insofar as they apply to the CEO, by the Board. The performance objective related to
biodiversity is embedded in our commitment to improve incident management at sites. In 2025, LMC’s performance objective was zero level 3 or above sustainability incidents21. In 2025, sites reported
two level 3 incidents involving biodiversity. These incidents both related to unauthorized removal of vegetation which included specimens considered protected or vulnerable by local regulations. In both
cases, the incident did not impact the local flora population. The cases were reported to local authorities and replanting took place as a mitigation measure.
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21 Lundin Mining identifies and assesses the impact of incidents through its Sustainability Incident Management Standard. Sustainability incidents are classified based on a five-tier scale, from level 1
incidents that are common in the normal course of operations and present minimal social or environmental impacts, to level 5 incidents that present immediate, wide-spread, and significant social or
environmental impacts. As it pertains to biodiversity, level 3 incidents are defined as incidents with moderate degradation of natural resources in nearby areas (2 – 5 years to rehabilitate); resulting in
reversible impacts.
===== SIDA 126 =====
Metrics related to biodiversity and ecosystems
Metric 2025
Number of sites in protected or near biodiversity-sensitive areas with negative affectation22 2
Sites total land owned, leased or managed in or near these protected areas or key biodiversity areas (Ha)23 127,987
Candelaria (Ha) 29,251
Vicuña Project (Ha) 98,735
The sites that have identified biodiversity sensitive areas are as follows:
- At Candelaria, a key biodiversity area has been identified in the site total area is known as the Desierto Florido Priority Zone. A marginal portion of this has been affected due to the expansion of the
Los Diques Tailings Storage Facility and the advancement of the North Waste Dump. While the affected area is small, it is considered environmentally sensitive due to the presence of priority
habitats and species of conservation concern. The site has implemented prevention, minimization, restoration and compensation measures according with its Environmental Qualification
Resolution (RCA) to address the biodiversity impacts identified. Measures include rescuing and relocation of cacti, safeguarding seeds and bulbs of flora species, regular cleaning and maintenance
of the area impacted and a targeted study aimed at detecting and identifying native cactus species (Copiapoa megarhiza, Pyrrhocactus confinis, and Pintoa chilensis).
- At the Vicuña Project, the San Guillermo Biosphere Reserve has been recognized by UNESCO as being of high importance for the conservation of ecological processes and sustainable
development. Additionally, the project’s buffer zone also overlaps with other relevant protected areas such as the Laguna Brava Provincial Reserve (Argentina) and the Los Huascoaltinos Private
Nature Reserve (Chile), both of which are also recognized by the RAMSAR Convention and International Union for Conservation of Nature (IUCN) as key biodiversity areas of global importance.
Vicuña is in the process of completing a biological baseline and undertakes fauna and flora monitoring programs to mitigate anticipated impacts, these programs are focused on relocation of
fauna and flora, as well as seed collection for conservation purposes.
Metrics methodologies and assumptions
- Biodiversity sensitive areas: Natura 2000 network of protected areas, UNESCO World Heritage sites and Key Biodiversity Areas ("KBAs"), as well as other protected areas as per ESRS definition.
- Sites have identified their biodiversity sensitive areas within a 50 km radius of their operations. Information sources include the sites environmental impact assessments and publicly available data
bases such as Protected Planet and BirdLife International.
- Total amount of land owned, leased or managed covers mining, processing and exploration areas, including land that is used, or where LMC has concessions to use land.
- The sites area reported correspond to the surface area considered exclusively for ESRS reporting purposes. The sites area does not represent the physical footprint of site’s operations, nor should it
be interpreted as equivalent to the areas effectively intervened or declared to the competent local environmental authorities.
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
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22 Sites have identified their biodiversity sensitive areas within a 50 km radius of their operations.
23In line with ESRS requirements, the area disclosed corresponds exclusively to the total area of the sites and is not intended to represent the biodiversity sensitive area.
===== SIDA 127 =====
Resource Use and Circular Economy (ESRS E5) - Waste and Tailings
Material impacts, risks and opportunities and their interaction with strategy and business model
Lundin Mining’s operations generate mineral waste primarily in the form of waste rock and process tailings as an inherent outcome of ore extraction and processing activities. Waste rock is generated to
access mineralized ore and, depending on site-specific geological and operational conditions, is managed through use in on-site construction, or deposition in designated on-site waste rock stockpiles.
Tailings are produced during mineral processing and are managed predominantly through surface tailings storage facilities designed to contain and isolate tailings materials.
The generation and management of tailings and other mineral waste represent a material sustainability topic due to the potential for adverse environmental and social impacts if these materials are not
effectively managed during operations and throughout post-closure. Key environmental risks associated with mineral waste include acid rock drainage and metal leaching, which can occur when
sulphide-bearing materials are exposed to air and water and may adversely affect surface water and groundwater quality if not properly controlled. Surface tailings storage facilities also present inherent
safety and environmental risks, including the potential for structural failure, thereby requiring robust design, operation and monitoring.
In addition to mineral waste, Lundin Mining generates non-mineral waste streams associated with operational and support activities, which must be managed to mitigate potential environmental and
social impacts at and beyond its sites. As a mining company engaged in large-scale ore extraction, the Company’s most significant resource use and circular economy IROs arise from the generation and
long-term management of mineral and non-mineral wastes within the constraints of the mining life cycle. Resource efficiency and waste minimization practices are applied where feasible; however,
opportunities for circular material flows are inherently limited by the nature of mining operations and the characteristics of extracted materials and tailings.
Description and assessment of material resource use and circular economy impacts, risks and opportunities
The material IROs related to Resource Use and Circular Economy have been identified through the DMA. The materiality assessment is discussed under General Information. Refer to the Material
impacts, risks and opportunities section for details about our process to identify material IROs. The table below includes the description of the material IROs related to material use and circular
economy for Lundin Mining.
127
===== SIDA 128 =====
Description IRO Timeline
(ST, MT, LT)
Value Chain
Resource Inflows
Mining is resource-intensive industry, relying heavily on raw materials for extraction and processing. This contributes
to resource depletion and environmental footprint, especially when resources are not used efficiently
Impact materiality (Actual/Negative) Short term Own operations
Waste and Tailings
Catastrophic structural failure would have environmental, health and safety and social consequences, including
water contamination, ecosystem destruction, and health and safety incidents in connection with exposure of workers
and nearby communities
Impact materiality (Potential/Negative)
Short term,
Medium term,
Long term
Own operations
Improperly managed tailings can pose a danger to the health of workers and nearby communities, increasing the risk of
exposure to toxic substances and heavy metals Impact materiality (Potential/Negative)
Short term,
Medium term,
Long term
Own operations
If tailings storage facilities or ore stockpiles are not adequately managed, wind can carry dust containing heavy metals
or other pollutants, potentially impacting air quality and exposing nearby populations and ecosystems to
contamination
Impact materiality (Potential/Negative) Short term Own operations
Long-term waste and tailings management obligations require financial provisions for closure and post-closure
monitoring. Inadequate planning, unforeseen technical challenges, or regulatory amendments can significantly
increase remediation costs and extend LMC’s liability
Financial materiality (Risk) Short term Own operations
Our policies and approach
Governance
policies
Relation to the sustainability topic Approach
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===== SIDA 129 =====
RMP, RMMS The policies and management system described are designed to prevent, mitigate and
manage the material impacts and financial risks related to resource use and circular
economy, including impacts associated with the extraction and use of natural resources,
generation and management of mineral and non-mineral waste, and tailings management
risks. The scope of these policies and related management measures aligns with the value-
chain boundary of the identified impacts and risks, which primarily relate to Lundin Mining’s
own operations.
The Company’s RMP establishes the Company’s overarching commitment to responsible
resource stewardship throughout the mining life cycle. In relation to the identified resource-
use and circular-economy IROs, the RMP requires operations to manage the use of natural
resources efficiently, minimize waste generation where practicable, and manage waste and
tailings in a manner that seeks to reduce potential adverse environmental and social impacts.
The RMMS operationalizes the commitments set out in the RMP by providing a structured
framework to identify, assess, manage and monitor resource-use-related impacts and risks. In
the context of resource use and circular economy, the RMMS establishes minimum
requirements for site-level management of material inputs, waste and tailings, including risk
assessment, implementation of controls, monitoring of performance, and corrective actions
where required. This management system supports the management of both potential
environmental impacts and financial risks associated with inefficient resource use, waste
generation and tailings management.
The Company’s tailings governance framework provides a consistent approach to the
management of tailings-related risks, supported by multi-tiered oversight and clearly defined
roles and responsibilities across the organization.
Additional relevant information:
Our policies cover LMC’s business activities and apply to all individuals working at or for LMC.
All LMC employees are expected to acknowledge our policies by reading, understanding, and
following the policies.
To cover the impacts in our value chain we encourage our business partners to acknowledge
receipt of LMC’s RMP
Managing Mineral Wastes
Lundin Mining recognizes the importance of an integrated approach to mineral waste
management to identify and manage potential safety, environmental and social impacts.
All of Lundin Mining’s operations manage their tailings in accordance with the Corporate
Tailings Management Standard, and meet the requirements of the GISTM.
The Corporate Tailings Management Standard requires that for all tailings facilities
throughout the entire life cycle, from planning and design, construction, operation, closure,
and post-closure, implementation of leading practices
will be carried out to:
- Protect the health and safety of our people and host communities
- Minimize harm to the environment
- Ensure all aspects comply with Lundin Mining policies and standards and accepted
international practice
- Ensure all aspects comply with commitments to stakeholders
- Ensure leadership, personal commitment, and accountability from all employees,
consultants, and contractors is embedded throughout all aspects of tailings
management
In practice, LMC operations have established safety and environmental practices to
manage tailings storage facilities. Social performance teams at all sites work closely with
operational teams to manage tailings facility and waste rock stockpile-related impacts on
local communities.
Managing Non-mineral Wastes
Our operations purchase a wide range of raw materials and supplies that, in turn, result in
the generation of many different types of waste.
Management of these wastes is formalized through jurisdictional requirements and the
implementation of waste management plans. These plans specify how the different types
of waste produced by our activities are to be managed, including a focus on circularity
measures through identification of opportunities for waste minimization, recycling and
reuse.
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===== SIDA 130 =====
Tracking of
implementation
and effectiveness
The effectiveness of the policies and management systems in managing the identified resource-use and circular-economy impacts and risks is monitored through a combination of site-level
performance tracking, internal audits and governance reviews. Information related to resource use, waste and tailings performance is reviewed through established management processes,
with oversight by management and reporting to relevant Board committees as appropriate. These monitoring activities support the identification of non-conformances, the assessment of
control effectiveness, and the implementation of corrective actions where required.
Other supporting systems
Tailings governance
Lundin Mining’s oversight of all tailings facilities includes a three lines model. The first line starts with the operational management and engineering teams at the sites which includes a Responsible
Tailings Facility Engineer. At the corporate level, Lundin Mining has a specialized tailings team, which serves as a dedicated technical resource for the site operators and engineers and serves as the
second line. The corporate team provides technical leadership related to tailings management. For assurance, the corporate team manages the ITRB program and works closely with the sites and
external Engineers of Record to facilitate the completion of any recommended actions in a timely manner. This team develops guidance and tools that support consistent implementation of the Tailings
Management Standard across the Company. The team also stays abreast of current and emerging technologies and leading international practices around tailings facility design and management. The
corporate team provides advice to the sites and supports the Accountable Executive by communicating on assurance activities and any findings as well as preparing reports to our Board and its
committees, as appropriate. As a third line, the corporate team arranges audits to verify consistent implementation and conformance with the Tailings Management Standard including the relevant
management systems to ensure effectiveness.
Independent Tailings Review Boards
Lundin Mining’s Tailings Management Standard includes a requirement for regular independent third-party tailings review boards, which are recognized as a leading practice for effective tailings
management. ITRBs have been established for all tailings facilities. In addition to the annual site visit, progress meetings with the ITRBs and Engineer of Record are completed throughout the year to
closely track progress made on outstanding recommendations.
Other
Our corporate Waste Rock and Ore Stockpile Facility Standard, supported by the RMMS, defines the minimum requirements and provides guidance to sites on expectations regarding the design,
construction and operation of mine waste and ore stockpiles.
Actions and resources related to waste and tailings during the year
During the reporting period, the Company implemented actions related to the management of tailings and waste to address its material IROs associated with resource use and circular economy. Actions
are grouped into mineral waste and non-mineral waste streams and form part of the Company’s ongoing waste and tailings management approach, which is expected to be ongoing , unless otherwise
stated. The scope of these actions covers LMC’s own operations and, where relevant, interfaces with affected communities and the value chain. The effectiveness of waste and tailings management
actions is assessed through compliance with regulatory requirements, conformance assessments against the GISTM, independent tailings review processes, incident reporting, and ongoing monitoring
of waste generation, diversion and disposal outcomes.
Mineral Wastes (Tailings Management)
Across Lundin Mining's operations as at December 31, 2025, the Company operated five active tailings facilities and uses the widely accepted method of surface tailings disposal. This involves
placement in engineered surface impoundments or, in the case of Eagle, in a previously mined open pit. Eagle Mine is the only operation that does not have a constructed tailings impoundment with
dams.
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===== SIDA 131 =====
Across the other operations, the active tailings facilities use various construction techniques for the main and secondary or perimeter dams. Lundin Mining also maintains and monitors five inactive/
closed tailings facilities.
As per GISTM requirements, the status of all active and inactive tailings facilities has been updated. All our operating sites as of December 31, 2025 have reported full conformance to the GISTM,
following the closure of the gaps at the inactive tailings facilities at Candelaria and the tailings facility at Eagle. During the reporting period, construction activities at the Chapada tailings storage facility
progressed, and all applicable regulatory milestones were met. Additionally, ITRB reviews were completed at Candelaria, Caserones, Chapada and Eagle.
Non-mineral Wastes
LMC’s operations undertake several ongoing initiatives to improve the management of non-mineral waste streams in line with regulatory requirements and internal objectives. The following initiatives are
representative examples of non-mineral waste management practices implemented across the Company’s operations during the reporting period.
Candelaria has implemented an ongoing waste reduction plan to reduce operational costs and support the application of circular economy principles using a waste-ranking matrix to prioritise reduction
and diversion actions. Supporting measures include a tire recycling initiative and broader waste management improvements across the operation. During 2025, tire recycling activities continued in
accordance with Chilean Recycling and Extended Producer Responsibility legislation, which establishes minimum collection and recycling obligations for tire importers. Waste transportation and
tracking are managed through the Puma Waste Contract Monitoring System, an automated registration and control system operated jointly with waste management contractors. Consistent with the
scale and nature of its operations, the Candelaria Complex represented the largest contributor to total waste generation.
Caserones, has an ongoing program aimed at extending the service life of large haul truck tires. Measures include early damage detection, regular monitoring and adjustment of tire pressure and
temperature, training for suppliers and contractors, and improvements to haul road conditions.
Resources
The Company allocates financial, human and operational resources and human resources through the Company’s annual budgeting and operational planning processes to manage and
mitigate material waste and tailings-related impacts identified through the DMA. Human resources included are dedicated social performance and personnel at site and corporate levels, supported by
specialist functions where required. During the reporting year, the Company has spent $97 million on tailings management. In 2026, the Company intends on spending approximately $100 million
on tailings management at Candelaria, Caserones and Chapada.
Targets related to resource use and circular economy
LMC has not developed consolidated long-term targets related to resource use and circular economy. Management of this topic is embedded within the Company’s governance framework and is
addressed through the implementation of policies, site-level management and ongoing monitoring of performance through Company-wide performance objectives. All operations have individual
objectives for waste and tailings management, on the basis of their regulatory requirements all of which vary for each mine site. Compliance is verified by local or regional authorities.
Company-wide performance objectives are approved by the HRCC and, insofar as they apply to the CEO, by the Board. The performance objective related to resource use and circular economy is
embedded in our commitment to adoption and conformance of sites to the GISTM. This objective, specific to tailings, was achieved given 100% conformance at all sites.
Resource inflows
Material resource inflows related to LMC’s identified IROs include both primary and secondary raw materials, as well as associated process materials used across primarily copper mining and
processing operations. Primary raw materials consist mainly of copper-bearing ores extracted through open-pit and/or underground mining, along with overburden and waste rock. Secondary raw
131
===== SIDA 132 =====
materials include tailings, or other recovered materials that may be reintroduced into the production process. Mined rock is separated into ore and waste rock; the ore undergoes crushing, grinding, and
beneficiation (such as flotation) to produce copper concentrate, while waste rock is managed through designated waste rock facilities.
Metrics related to resource use and circular economy
Metric (tonnes) Total amount of waste generated
Non-mineral wastes Mineral wastes Total 2025
Total waste generated 32,007 174,026,086 174,058,093
Percentage breakdown mineral & non-
mineral waste (%) 0.02% 99.98% 100%
Metric (tonnes)
Operated Assets Joint
Operation
Total 2025Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-
Corvo Zinkgruvan Vicuña
Project
Total amount of waste generated 65,370,561 60,428,040 45,552,869 701,749 1,496,999 506,664 1,211 174,058,093
132
===== SIDA 133 =====
Metric (tonnes) Total amount of waste diverted from disposal, breakdown by hazardous and non-hazardous waste and recovery
operation type
Non-mineral wastes Mineral wastes Total 2025
Total waste diverted from disposal 16,559 11,494,278 11,510,837
Non-mineral wastes Mineral wastes Total 2025
Total waste diverted from disposal - non-hazardous 13,116 10,847,598 10,860,714
i preparation for reuse 1,233 10,847,598 10,848,831
ii recycling 11881 — 11,881
iii other recovery operations 2 — 2
Non-mineral wastes Mineral wastes Total 2025
Total waste diverted from disposal - hazardous 3,443 646,680 650,123
i preparation for reuse 214 646,680 646,894
ii recycling 2,130 — 2,130
iii other recovery operations 1,099 — 1,099
133
===== SIDA 134 =====
Metric (tonnes)
Operated Assets Joint
Operation
Total 2025Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan Vicuña
Project
Total waste diverted from disposal 10,408,214 3,273 3,860 120,528 757,546 217,372 44 11,510,837
Total waste diverted from disposal - non-hazardous 10,406,531 3,273 2,226 120,528 211,574 116,538 44 10,860,714
i preparation for reuse 10,401,858 — 745 120,119 209,721 116,388 — 10,848,831
ii recycling 4,673 3,273 1,481 409 1,853 148 44 11,881
iii other recovery operations — — — — — 2 — 2
Total waste diverted from disposal - hazardous 1,682 — 1,634 — 545,972 100,834 — 650,123
i preparation for reuse 75 — 97 — 545,887 100,834 — 646,894
ii recycling 1,607 — 437 — 85 — — 2,130
iii other recovery operations — — 1,099 — — — — 1,099
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===== SIDA 135 =====
Metric (tonnes) Total amount of waste directed to disposal, breakdown by hazardous and non-hazardous waste and waste
treatment type
Non-mineral wastes Mineral wastes Total 2025
Total waste directed to disposal 15,350 162,531,808 162,547,158
Non-mineral wastes Mineral wastes Total 2025
Total waste directed to disposal - non-hazardous 11,376 161,695,842 161,707,218
i incineration 49 — 49
ii landfill 11,328 — 11,328
iii other disposal operations — 161,695,842 161,695,842
Non-mineral wastes Mineral wastes Total 2025
Total waste directed to disposal - hazardous 3,974 835,966 839,940
i incineration 1,862 — 1,862
ii landfill 1,215 — 1,215
iii other disposal operations 896 835,966 836,862
135
===== SIDA 136 =====
Metric (tonnes)
Operated Assets Joint
Operation
Total 2025Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan Vicuña
Project
Total waste directed to disposal 54,962,347 60,424,669 45,549,009 581,220 739,453 289,292 1,167 162,547,158
Total waste directed to disposal - non-hazardous 54,961,132 60,423,465 45,548,600 581,217 192,707 16 81 161,707,218
i incineration — — 49 — — — — 49
ii landfill 2,964 4,977 197 3,093 — 16 81 11,328
iii other disposal operations 54,958,168 60,418,488 45,548,355 578,124 192,707 — — 161,695,842
Total waste directed to disposal - hazardous 1,215 1,204 408 3 546,746 289,276 1,086 839,940
i incineration — 367 408 — — — 1,086 1,862
ii landfill 1,215 — — — — — — 1,215
iii other disposal operations — 837 — 3 546,746 289,276 — 836,862
Metric (tonnes) Total amount of hazardous waste and radioactive waste generated
Non-mineral wastes Mineral wastes Total hazardous wastes 2025
Total hazardous waste generated 7,417 1,482,646 1,490,062
Total radioactive waste generated — — —
Metric (tonnes)
Operated Assets Joint
Operation
Total 2025Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-
Corvo Zinkgruvan Vicuña
Project
Total hazardous waste generated 2,898 1,204 2,042 4 1,092,718 390,110 1,087 1,490,062
Total radioactive waste generated — — — — — — — —
Metrics methodologies and assumptions
- Mineral wastes are materials left over after the extraction and processing of mineral resources. For Lundin Mining, these comprise waste rock and tailings. Heap leach material is not included in the
definition of waste until the heap leach operation ceases.
- Non-mineral wastes are any substance or object which the operation discards or intends or is required to discard.
- Waste rock that remains underground (not hoisted) or is stored temporarily on the surface and returned underground according to the mine plan is classified as 'waste diverted from disposal' as it is
reused for mine stabilization as opposed to disposed.
136
===== SIDA 137 =====
- Tailings that are treated in a tailings paste plant and returned underground are classified as 'waste diverted from disposal' as they reused for mine stabilisation as opposed to disposed.
- Waste rock that is used on the surface for works such as tailings facility embankment construction or road construction/maintenance is classified as 'waste diverted from disposal' as it is reused as
opposed to disposed.
- Each operation provides information regarding the designation of waste rock and tailings as hazardous or non-hazardous according to the jurisdiction in which they operate.
- Tailings data are based on direct measurements, calculations or a combination of the two, depending on the site.
- Quantitative data are reported separately by the operations for mineral wastes and non-mineral wastes for transparency and to facilitate data analysis. During corporate consolidation, the data are
summed to generate total Lundin Mining waste quantities across all operations.
- Each operation records non-mineral waste-related data to comply with the legal and regulatory requirements of the jurisdiction in which they operate. All operations report that they use
appropriately licensed waste management contractors and rely on waste quantities reported by them.
- Designation of waste types as hazardous or non-hazardous are allocated by the operations according to national waste codes.
- There is variation between operations as to how non-mineral wastes are described and allocated, depending on national requirements.
- Due diligence checks by operations regarding non-mineral wastes reaching their reported destinations are limited. For some operations this is addressed by comprehensive national waste tracking
systems (e.g. Chile). Other operations rely on licensed waste management contractor reporting.
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
Weight of products and materials used
Metric (tonnes)
Operated Assets
Joint Operation
Total 2025Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-Corvo Zinkgruvan Vicuña Project
Overall total weight of products and technical and biological
materials used 37,049,641 53,490,356 29,893,290 716,381 1,315,663 459,525 0.22 122,924,857
Metrics methodologies and assumptions
- Products and technical materials: Include key chemicals (e.g., H2SO4, Lime, NaOH, flocculant, oil, etc.) and supplies (e.g. tires, grinding balls, etc.) used for producing Lundin Mining's primary
products—copper, gold, and nickel.
- Biological material: A material derived from, or produced by, biological organisms like plants, animals, bacteria, fungi and other life forms (Source: Pennsylvania State University, 2026). Lundin
Mining operations involve the extraction and processing of inorganic mineral resources, and therefore the Company does not rely on biological materials in any significant way. Consequently,
biological materials have been excluded from the calculation.
- Mined ore is the main critical raw material for producing the Company's primary products—copper, gold, and nickel—during the 2025 reporting year.
- While ESRS guidance includes water as a resource inflow, the Company accounts for water management metrics separately under the water withdrawn/consumption metrics. In addition, disclosure
of water by weight is not a common metric for the Company nor for the mining and metals industry.
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
137
===== SIDA 138 =====
EU Taxonomy
Introduction
The EU Taxonomy ("Taxonomy") aims to create transparency on environmentally sustainable activities for all stakeholders. This classification system requires companies to disclose the proportion of
turnover, capital expenditure24 ("CapEx"), and operating expenditure25 ("OpEx") associated with activities that align with the technical screening criteria of Regulation (EU) 2020/852 and its related
Delegated Acts, including Delegated Act (EU) 2026/73, as amended by the Omnibus Delegated Act. To be considered aligned, these activities must make a significant contribution to one of the
environmental objectives, must not cause significant harm to any of the environmental objectives of the Taxonomy and must be carried out in accordance with the minimum safeguards. The
environmental objectives set out in the Taxonomy are:
1. Climate change mitigation ("CCM")
2. Climate change adaptation ("CCA")
3. Sustainable use and protection of water and marine resources ("WTR")
4. Transition to a circular economy ("CE")
5. Pollution prevention and control ("PPC")
6. Protection and restoration of biodiversity and ecosystems ("BIO")
2025 is Lundin Mining's first year of reporting the EU Taxonomy. Therefore, comparative figures will not be presented.
EU taxonomy reporting at Lundin Mining
Lundin Mining is required to disclose to what extent its activities are covered by the Taxonomy (i.e. if they are Taxonomy-eligible), comply with the criteria set out in the Climate Delegated Acts (i.e. if they
are Taxonomy-aligned), as amended by the Omnibus Delegated Act , and the related revenue (turnover), CapEx, and OpEx amounts as KPIs.
For the reporting period, Lundin Mining has assessed the eligibility and alignment of its activities in relation to the environmental objectives. Since non-ferrous mining is not yet included in the Taxonomy,
the core business will not be assessed for Taxonomy alignment. Instead, only activities such as water treatment will be assessed as Taxonomy-eligible. Lundin Mining is aware that non-ferrous mining
may be included in the Taxonomy in future years and will monitor future developments.
Process
The process for compiling Taxonomy disclosures is based on identifying eligible activities through review of CapEx and OpEx which were assessed against activity descriptions set out in the Taxonomy
and related Delegated Acts. Eligible activities are then compared against a materiality threshold to determine whether the activities are material to the business (greater than 10% of revenue, CapEx or
OpEx). For the Turnover KPI, Lundin Mining's core business (non-ferrous mining) is not an eligible activity, therefore no revenue has been identified as eligible. For the CapEx KPI, the eligible activities
were found to be below the 10% cumulative materiality threshold as allowed by the Omnibus Delegated Act, and as such, they were considered as activities non-assessed for alignment since they were
non-material.
138
24 References to capital expenditure (CapEx) in this section are as defined by the EU Taxonomy and may not align with other disclosures of capital expenditure by the Company.
25 References to operating expenditure (OpEx) in this section are as defined by the EU Taxonomy and may not align with other disclosures of operating expenditure by the Company.
===== SIDA 139 =====
Economic activity
Economic Activity Code Comment
Construction, extension and operation of water
collection and treatment
5.3 CCM
5.3 CCA
CapEx. Lundin Mining has invested in managing excess water at the Chapada mine including expenditure on a water
treatment system and sumps. The water treatment system treats contaminated water before discharge.
Acquisition and ownership of buildings 7.7 CCM CapEx. Vicuña has entered into office and building leases during the year.
Reporting principles
The information published in the context of the Taxonomy is determined based on the amounts included in the Company's Consolidated Financial Statements which were prepared in accordance with
IFRS as issued by the International Accounting Standards Board, and includes the same scope of companies as included in the Consolidated Financial Statements. To prevent duplication, each
Taxonomy-eligible investment is included in only one activity in either CapEx or OpEx. Turnover excludes discontinued operations while CapEx and OpEx include discontinued operations.
Turnover
Turnover reported is consistent with the revenue from continuing operations (see Note 19 'Revenue' of the Consolidated Financial Statements). The turnover ratio is 0% as all of Lundin Mining's revenue
comes from mining, which is not a Taxonomy-eligible activity.
Capital expenditures
CapEx disclosed in accordance with the Taxonomy include additions to tangible assets, intangible assets, and right-of-use assets excluding goodwill. Please see Note 3 'Assets and Liabilities held for
sale and discontinued operations', Note 9 'Mineral Properties, Plant and Equipment', and Note 13 'Lease Liabilities' of the Consolidated Financial Statements for reference. Non-material CapEx not
assessed for Taxonomy eligibility amounted to $7.2 million in 2025 and related to water management activities at Chapada and office/warehouse space for Vicuña. The not assessed activities
considered non-material is 0.8%.
Operating expenditures
There is no OpEx in accordance with the Taxonomy definition of OpEx. Lundin Mining's operating expenditures primarily relate to mining and processing activities associated with the mining operations.
These mining and processing expenditures are capitalized as inventory and are therefore not considered OpEx by the Taxonomy. As a result, no OpEx qualifies as Taxonomy eligible and the OpEx KPI is
0%.
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===== SIDA 140 =====
Year 2025
KPI Total
Proportion
of
Taxonomy
eligible
activities
Taxonomy
aligned
activities
Proportion
of
Taxonomy
aligned
activities
Climate
Change
Mitigation
Climate
Change
Adaptation
Water Circular
Economy Pollution Biodiversity
Proportion
of enabling
activities
Proportion
of
transitional
activities
Not
assessed
activities
considered
non-
material
Taxonomy
aligned
activities in
previous
financial
year
Proportion
of
Taxonomy
aligned
activities in
previous
financial
year
Turnover $4,053 0.0% $- 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% N/A N/A
CapEx $865 0.0% $- 0% 0% 0% 0% 0% 0% 0% 0% 0% 0.8% N/A N/A
OpEx $— 0.0% $- 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% N/A N/A
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===== SIDA 141 =====
Social Information
Own Workforce (ESRS S1)
Material impacts, risks and opportunities and their interaction with strategy and business model
The Company’s own workforce is a material sustainability topic due to its direct influence on operational efficiency, business continuity and long-term value creation. The Company’s ability to execute
its strategy and operate safely and reliably depends on attracting, developing and retaining a skilled and competent workforce across its operations. Workforce availability, capability and engagement
therefore have a direct interaction with the Company’s business model and strategic objectives.
Health and safety are central components of this material topic. Mining activities inherently involve elevated occupational health and safety risks, particularly at operational sites, and ineffective risk
management may result in serious injuries or fatalities, operational disruption, regulatory consequences and reputational harm. These impacts and risks are intrinsic to the Company’s operating model
and are therefore material from an impact and risk perspective.
The scope of this disclosure includes all individuals within the Company’s own workforce, including employees and contractors. Occupational health and safety impacts are not uniform across all roles,
and exposure to risks varies depending on the nature of work performed. Site-based operational roles are generally exposed to higher occupational health and safety risks than corporate-based roles.
These risks are managed through the Company’s health and safety management systems, standards and site-level controls, which are applied across operations. Based on the outcomes of the DMA,
the Company has not identified material IROs that are specific to defined sub-groups within its own workforce beyond the distinction between operational and non-operational roles. In addition, no
material workforce-specific transition risks or opportunities related to climate change mitigation have been identified, as the Company has not adopted a formal climate transition plan as defined under
ESRS.
Description and assessment of material impacts, risks and opportunities
The material IROs related to own workforce have been identified through the DMA. The materiality assessment is discussed under General Information section. Refer to the Material impacts, risks and
opportunities section for details about our process to identify material IROs. The table below includes the description of the material IROs related to own workforce for Lundin Mining.
141
===== SIDA 142 =====
Description IRO Timeline
(ST, MT, LT) Value Chain
Health and Safety
By nature, exploration and mining activities may present a variety of hazards and associated health and safety risks,
including, single or multiple fatalities or injuries among employees and contractors
Impact materiality
(Potential/Negative) Long term Own operations,
value chain
Mining activities could lead to reversible and irreversible health issues. These may affect employees’ and contractors’
short-term well-being and could require medical attention, task modifications, or preventive measures
Impact materiality
(Potential/Negative) Long term Own operations
Working Conditions
A work environment with occurrences of violence or harassment can impact employees’ health and wellbeing, potentially
leading to anxiety, depression, or stress
Impact materiality
(Potential/Negative) Long term Own operations
Strikes and production delays may halt operations, leading to revenue shortfalls, contractual penalties, and increased
expenses related to temporary labor, legal support, and site security. Long-term strikes can also impact commodity output
and LMC’s financial performance in global markets
Financial materiality (Risk) Short term Own operations
Competitive wages and benefits provided by LMC contribute to employees’ financial security, enabling them to meet
essential needs, plan for the future, and improve their overall quality of life
Impact materiality
(Potential/Positive) Short term Own operations
Creation of a wide range of job opportunities across various skill levels, contributing to income generation and reduced
unemployment. Stable employment supports the local economy, enhances individual livelihoods, and promotes long-term
regional growth.
Impact materiality
(Potential/Positive) Short term Own operations,
value chain
Our policies and approach
We know that our people and culture are pivotal to the overall success of our business. We continue to invest in our talent pipeline, encouraging our people to further their careers within our global
organization. We strive to foster open communication and inclusivity as we build the skills and capabilities of the next generation of Lundin Mining leaders.
We are strengthening our culture of respect and transparency. We understand that success depends on a skilled and motivated workforce, and that employee engagement is key to employee retention.
To foster a meaningful work experience, we believe it is important that our employees have knowledge of Lundin Mining’s direction and priorities, and appreciate how their efforts and successes
contribute to our overall goals.
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===== SIDA 143 =====
Governance
policies
Relation to the sustainability topic Approach
RMP, RMMS
Code of Conduct,
The policies and management systems described below are designed
to prevent, mitigate and manage the material impacts and financial risks
related to Lundin Mining’s own workforce, including impacts and risks
associated with occupational health and safety, working conditions, labour
relations, and workforce wellbeing. The scope of these policies and related
management measures aligns with the value- chain- boundary of the
identified impacts and risks, which relates to Lundin Mining’s employees
and contractors engaged in its own operations.
The policies and commitments related to our workforce include the Code of
Conduct, the Human Rights Policy, the RMP and RMMS.
Both the RMP and RMMS set the context for our health and safety
management system and provide a foundation for meeting legal
compliance, industry best practices and voluntary requirements in all
jurisdictions where we operate.
These requirements of the RMMS apply to all employees and contractors
working at all Lundin Mining operations or offices.
As required by the RMMS, the Company employs a risk management-based approach to ensure
that health and safety hazards and other aspects that can create a risk exposure are identified,
assessed and treated to prevent injuries and fatalities, and to mitigate the impact of adverse
events on human health.
LMC has developed health and safety practices customized to the unique aspects of each
operation and the needs of our workforce. We ensure that our workers are aware of the reporting
channels available to them and are protected against reprisals at all levels of the organization,
supported by our grievance mechanisms and Whistleblower Policy. Additionally, each operation
establishes protocols to uphold the right to refuse unsafe work. We continuously evaluate our
performance and share lessons learned across all Lundin Mining operations.
Our Code of Conduct outlines our zero tolerance towards any harassment and discrimination.
Discrimination on the basis of age, race, gender, marital status, national origin, religious beliefs,
sexual orientation, disability or on the basis of other personal characteristics is not permitted. In
addition, LMC does not engage in or condone forced, compulsory, or child labour of any kind and
will work to ensure these conditions are not present in our workforce. If a discrimination incident
should occur it should be reported to the supervisor, the appropriate members of management or
via our whistleblower function.
Tracking of
implementation and
effectiveness
The effectiveness of the policies and management systems in managing the identified impacts and risks related to the own workforce is monitored through a combination of
operational performance tracking, incident analysis, internal audits and management reviews. Information related to workforce health and safety performance, incidents, and
workforce concerns is reviewed through established governance processes, with oversight by management and reporting to relevant Board committees as appropriate. These
monitoring activities support the identification of trends, the assessment of the effectiveness of controls, and the implementation of corrective actions where required.
Third-party alignment: We align our practices with the UNGC Principles on Labour and support freedom of association and collective bargaining, the elimination of all forms of forced and compulsory
labour, the effective abolition of child labour and the elimination of employment/occupation-related discrimination. With respect to health and safety at the operations level, Candelaria, Caserones and
Chapada are certified to ISO 45001, covering both employee and contractor activities.
Other supporting systems (Workforce):
Labour & Security: The relationships between Lundin Mining, its unions and employees are distinct at each of our mines; however, our consistent approach prioritizes trust, transparency, respectful
dialogue and the constructive, peaceful resolution of any concerns that arise. We engage regularly with union leaders on matters related to local labour laws, business changes and contract
negotiations.
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We have integrated the Voluntary Principles on Security and Human Rights (“VP”) into our security-related policies and procedures. Currently, none of our operations are located in areas of conflict. The
Human Rights Policy and Code of Conduct support the unencumbered right to freedom of association and collective bargaining at all our operations. As part of our commitment, VP training is delivered
to security providers.
No operations have been identified as being at risk for child labour or for young workers being exposed to hazardous work. Lundin Mining enforces strict proof-of-age requirements during hiring that
prevent anyone under the legal industrial working age from being employed at any of our operations or exploration sites. Additionally, our operations are not considered at risk for incidents of forced or
compulsory labour, and our Code of Conduct and Business Partner Code of Conduct explicitly prohibit the use of forced, compulsory or child labour.
Global human capital management system: SuccessFactors is SAP-based and known internally as mySuccess. It creates a single source of global employee data, which allows us to invest in the
skills and capabilities of our workforce and identify continuous development and growth opportunities for employees. This strategic approach helps us prepare and promote talent for career
advancement within our business.
We have a structured process in place to map critical roles, drive succession planning and enable training, including our Code of Conduct and cybersecurity training. SuccessFactors provides us with
people analytics capability and supports our approach to strategic workforce planning.
SuccessFactors allows us to track other designated groups, and we have invited employees to voluntarily self-identify to help us develop baseline inclusion data based on gender, race/ethnicity and
sexual orientation; however, utilization of this feature by employees has been limited.
Nurturing Talent - Empowering Employees for Success: We encourage employees to take an active role in their careers, to consider where they want to go, and what development steps they may take
to get there, providing ongoing training and development initiatives to engage and motivate our employees. We continuously seek ways to improve and expand our employee communication channels to
ensure our people are kept up-to-date and informed about our business. We aim to create safe work environments that promote trust and respect, and where our employees honour differences in
backgrounds, experiences and perspectives.
Other supporting systems (Health and Safety):
Fatal Risk Management ("FRM") is a structured, preventive framework designed to systematically identify, evaluate, and control risks with the potential to result in serious injury or fatality. It focuses on
understanding how high consequence events could occur in real operational conditions and on implementing and verifying critical controls to prevent or mitigate those events. FRM integrates risk
identification, control, monitoring, and reporting into a continuous improvement cycle, ensuring informed decision-making, clear accountability, and sustained protection of workers’ health and lives
across all activities.
Learning Organization is a core pillar of Lundin Mining’s approach to health and safety, enabling continuous improvement through leadership, structured learning processes, and a supportive learning
environment. This is achieved through the systematic investigation of high potential events using the Incident Cause Analysis Method ("ICAM™), the leading systems based investigation methodology in
the mining industry. ICAM focuses on organizational learning rather than blame, identifying not only immediate factors but also deeper systemic and organizational weaknesses—such as deficiencies in
communication, training, operating procedures, leadership, change management, culture, and equipment design. The primary purpose of this learning is to strengthen environmental and system
controls, creating safer operating conditions and more resilient defenses so that, when deviations or failures occur, their potential consequences are effectively controlled. ICAM is implemented across
all Lundin Mining operations in alignment with the ERM framework, ensuring risks to employees, contractors, visitors, and local communities are treated using the hierarchy of controls, with priority given
to elimination, substitution, and engineering solutions. Learning is reinforced through the analysis of high potential hazards, near misses, and recordable incidents, driving improvements in critical
controls, leadership practices, and proactive safety systems.
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Field Leadership Program is a key enabler of Lundin Mining’s Learning Organization, strengthening safety through direct engagement where work is performed. The Field Leadership Program promotes
structured, frequent, and purposeful field interactions that allow leaders to understand how work is actually done, verify the effectiveness of critical controls, and identify strengths and gaps in systems,
standards, and behaviours. Through practices such as Visible Field Leadership ("VFL"), Planned Task Observation, Verification of Critical Controls, and Deep Dive Leadership, the program focuses on
reinforcing environmental and system safeguards, ensuring that critical controls are present, understood, and effective under real operating conditions. Rather than assigning blame or relying solely on
compliance, field leadership conversations generate learning that improves the resilience of work environments, strengthens defenses in depth, and supports safer outcomes even when deviations or
failures occur, embedding continuous improvement into everyday operations across all sites and contractors.
Crisis Management Planning and Emergency Preparedness: Protecting our workforce, communities, neighbours, stakeholders and operations is a top priority. Lundin Mining’s crisis management
program provides a structured framework and clear guidance to be implemented in the event of a crisis.
Each of our operations, along with our corporate office, develops a crisis management plan, establishes a crisis management team ("CMT") and conducts annual training to equip CMT members with the
skills needed to respond effectively in a crisis. Additionally, we maintain a high level of emergency preparedness across all Lundin Mining sites to manage and mitigate the impact of any unforeseen
events.
Industrial Hygiene & Occupational Health: Our industrial hygiene and occupational health efforts focus on identifying, monitoring and mitigating exposures to potential workplace hazards – such as
chemical, biological, physical or ergonomic agents – that can lead to acute illness or long-term, chronic occupational disease.
Our operations maintain a risk-based industrial hygiene program with a focus on identifying and monitoring for potential exposures unique to their operating environment and applying exposure-
reduction plans that focus on the most significant contaminants of concern. When potential exposures are identified, we analyze the relevant risks and develop exposure-reduction strategies with
mitigative measures based on a hierarchy of controls to reduce the potential risk to human health. We operate professionally staffed, onsite, occupational medical facilities at Candelaria, Caserones,
Chapada. Neves-Corvo and Zinkgruvan were supported by part-time medical professionals, while Eagle engaged with outside medical service providers and community clinics. All employees have
access to employee and family assistance programs and confidential counselling services.
Processes for engaging with own workers and workers’ representatives about impacts
We actively engage with our employees through a variety of meaningful initiatives. Each site has its own approach to connect with its employees, depending on the specific matters that are most
relevant to them. These include regular employee engagement surveys to gather feedback, ongoing in-the-field talks to stay connected with teams, quarterly business updates to keep staff informed,
and our structured annual performance review process for professional and leadership roles. We also prioritize one-on-one conversations to foster open communication and capture a diverse range of
perspectives. At each site, the managing directors have operational responsibility for ensuring that engagement happens and that the results inform the Company’s approach.
Feedback is gathered through the various engagement channels mentioned above and is carefully reviewed to identify trends and areas for improvement. Leadership uses these insights to inform
decision-making, ensuring that employee perspectives are reflected in strategies and initiatives that enhance our workplace culture and operational success.
A complaint, grievance or incident may be reported via the whistleblower channel either online or by phone. The whistleblower system is provided by an independent external third party, and the channel
is available to all employees and their representatives. Information about these channels and our Whistleblower Policy can be found on LMC’s external website.
The whistleblower function, including the handling procedure, is described in our Whistleblower Policy. All incoming complaints, grievances, and whistleblower reports are regularly monitored by LMC’s
Corporate Secretary. Whistleblower reports are also reported to the Company’s AC and CGNC, as applicable and appropriate.
LMC applies zero tolerance for retaliation against anyone who reports serious wrongdoing, misconduct, or serious deviations in good faith, in accordance with our Whistleblower Policy.
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Processes to remediate negative impacts and channels for own workers to raise concerns
LMC has various channels for its own workforce to report issues and grievances to management, including discrimination-related concerns. Issues can be raised with their supervisor, appropriate
member of management, or the AC or CGNC Chairs, as appropriate. Reporting can also be completed via the whistleblower channel either online or by phone. The whistleblower system is provided by
an independent external third party, and the channel is available to all employees and anyone in the public. Information about these channels and our Whistleblower Policy can be found on LMC’s
external website. We support the availability of this channel by sharing the contact information across various communication platforms throughout our worksites. For more details, see our
Whistleblower Policy and our Human Rights Policy.
LMC implements measures to address barriers that may prevent employees from raising concerns, including fear of retaliation and cultural norms. These measures include confidentiality safeguards, a
whistleblower mechanism that provides for anonymous reporting, awareness raising and training activities, and targeted internal communications. The effectiveness of the whistleblower mechanism is
monitored through ongoing case management, investigation outcomes and statistics, and regular reporting to the appropriate Board committees.
LMC has established procedures to address adverse impacts on its workforce that are caused or contributed to by the Company. Where such impacts are identified, LMC cooperates in remediation.
Remedies available to affected individuals may include apologies, restitution, rehabilitation, restoration, and financial or non-financial compensation, as well as measures to prevent the recurrence of
harm.
Processes for engaging with own workers and workers’ representatives about health and safety impacts
Engagement and feedback play a critical role in shaping operational decisions. Each site gathers input through various channels to identify trends and areas for improvement. Engagement is ongoing,
with each site employing different mechanisms based on its specific context. These may include Health and Safety Committees, workforce meetings, incident reports and in-the-field talks, among
others.
- Health and Safety Committees: Each of our operations has an active Health and Safety Committee with worker and management representation. Additionally, portions of our workforce are
represented by collective labour agreements, which include specific health and safety provisions and protections.
- Health and Safety Reporting: We foster an open and supportive dialogue with employees and contractors, encouraging them to report work-related hazards and hazardous situations, including
recognizing their right to remove themselves from work situations they believe could cause injury or ill-health. Health and safety performance results are reported to the Company’s ET and
Senior Leadership Team, shared across our operations through weekly and monthly reports, and reviewed quarterly with the Board’s SSTC. Our injury reporting processes align with the ICMM
and ESRS standards, detailed in Methodologies and assumptions of this section.
Actions and resources related to own workforce during the year
During 2025, the Company continued to implement a range of actions across its operations to prevent, mitigate and manage IROs related to own workforce, with a particular focus on health and safety.
Unless otherwise stated, these actions are ongoing in nature. Actions are designed to mitigate identified negative impacts, strengthen positive outcomes and support the long-term resilience of the
workforce in alignment with the Company’s strategy and operating model. Actions are supported by site-level operational resources, dedicated personnel and monitoring systems, and are implemented
in accordance with applicable regulatory requirements. The effectiveness of the actions is assessed through continuous monitoring of results, comparison of results against trends and historical
baselines, as well as continuous review of outcomes by site management teams. Workforce-related performance trends are also reviewed by the ET and reported quarterly to the Board and/or
appropriate Board committees.
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Our workforce remained actively engaged with health and safety activities throughout 2025, contributing to various working groups, conducting workplace inspections, participating in Health and Safety
Committee initiatives, and attending ongoing health and safety training.
In 2025, our health and safety efforts focused on implementing VFL training and Risk Owner training at site level. At the corporate level, we conducted corporate crisis management training.
In 2025, LMC implemented site-level and companywide initiatives to address material workforce-related topics, with a primary focus on occupational health and safety. Key actions included:
- FRM: Implemented a companywide FRM program focused on the 18 fatal risks, completing fatal risk assessments across all operations, strengthening risk and critical control ownership, and
standardizing high potential incident and near miss reporting. In parallel, security fatal and high-risk assessments were developed, with associated critical controls defined and integrated to
strengthen system defenses and operating conditions for security-related risks.
- Field Leadership Program: Continued implementation of the Field Leadership Program through the deployment of Planned Task Observation ("PTO"), Management and Verification of Critical
Controls ("MVCC") and VFL. These practices reinforce leadership presence in the field, standardize critical control identification and verification by employees and contractors, and support
stoppage of work where critical controls are not in place, strengthening environmental and system safeguards and reinforcing a leadership-driven safety culture.
- Learning Organization: Strengthened organizational learning through enhancements to the ICAM, including targeted training, improved focus on organizational and systemic factors, and
systematic closure of investigation actions. Learning from incidents, hazards, and near misses was embedded into operations to reinforce critical controls, strengthen system resilience, and
improve the ability to manage risk when controls are challenged or fail.
- Health and safety training: Regular workforce engagement through safety meetings, task-specific training, refresher programs, emergency response drills and crisis management exercises were
conducted at site and corporate levels.
The effectiveness of workforce-related actions is monitored using a combination of leading and lagging indicators, including health and safety KPIs, incident investigations, audit outcomes and
management system reviews. KPIs are monitored monthly, quarterly or annually, and the effectiveness of policies and controls is evaluated through the annual management system review process.
Managing potential conflicts between workforce impacts and business needs
LMC manages potential conflicts between mitigating adverse workforce impacts and business requirements through established governance, reporting and risk assessment processes. Incidents and
workforce concerns are reported and investigated through formal channels, including the whistleblower mechanism. Risk assessments are conducted for new or modified processes to identify and
address workforce impacts prior to implementation.
Health and safety objectives are embedded within external reporting and variable remuneration for senior management, reinforcing alignment between workforce protection and business decision-
making.
Resources
Financial, human and operational resources are allocated through the Company’s annual budgeting, workforce planning and operational management processes to manage and address material IROs
related to its own workforce, as identified through the DMA. These resources support the implementation of health and safety programs, training and development, workforce engagement initiatives, and
actions to promote fair working conditions, diversity and inclusion.
Financial resources are allocated through operating and capital budgets to support health and safety systems, training programs, employee wellbeing initiatives and workforce development activities.
Human resources include dedicated health and safety and human resources personnel at both site and corporate levels. Operational resources include management systems, reporting tools, training
platforms and internal controls that support the effective management of workforce-related matters.
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Resources allocated to own workforce are integrated into broader operational and functional budgets and are therefore not separately quantified on a standalone basis for this disclosure.
Targets related to own workforce
LMC has not developed consolidated long-term targets related to own workforce. Management of this topic is embedded within the Company’s governance framework and is addressed through the
implementation of policies, site-level management and ongoing monitoring of performance through company-wide annual performance objectives related to health and safety. All operations have
additional commitments and objectives for this topic, on the basis of their regulatory requirements all of which vary for each mine site. Compliance is verified by local or regional authorities.
Company-wide performance objectives are approved by the HRCC and, insofar as they apply to the CEO, by the Board. The performance objective is focused on health and safety and is embedded in our
commitment to improve incident management at sites. The objective for 2025 was to improve the Total Recordable Injury Frequency ("TRIF") rate to 1.75 or better. This objective, specific to health and
safety was achieved as a TRIF rate of 1.72 was reported.
Metrics
Characteristics of the undertaking’s employees and non-employees
As of December 31, 2025, Lundin Mining globally employed 4,768 people – who are located primarily in Brazil, Canada, Chile, and the United States. A significant number of contractors26 also work at our
sites, totalling 9,738 people globally at the end of 2025. Contractors are primarily engaged in maintenance, mine development, mining and project activities; however, they also may temporarily replace
workers on leave or be assigned to specific, short-term projects.
148
26 Number of contractors reported on a headcount basis at the end of the reporting period.
===== SIDA 149 =====
Number of employees by country and by gender
Country Male Female Total 2025
Brazil 1,041 172 1,213
Canada 33 25 58
Chile 2,445 455 2,900
Switzerland — 2 2
Continuing Operations 3,519 654 4,173
USA 331 55 386
Discontinued Operations 331 55 386
Argentina 141 50 191
Canada 8 1 9
Chile 5 4 9
Joint Operation 154 55 209
4,768
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Total number of employees by gender
Type of Employees Male Female Total 2025
Permanent 3,242 595 3,837
Temporary 277 59 336
Non-guaranteed hours — — —
Continuing Operations 3,519 654 4,173
Permanent 329 54 383
Temporary — — —
Non-guaranteed hours 2 1 3
Discontinued Operations 331 55 386
Permanent 153 54 207
Temporary 1 1 2
Non-guaranteed hours — — —
Joint Operation 154 55 209
4,768
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Total number of contractors (non-employees)
Operation Number of Contractors
Candelaria 3,408
Caserones 3,692
Chapada 1,564
Chile Regional Office 23
Continuing Operations 8,687
Eagle 40
Discontinued Operations 40
Vicuña Project 1,011
Joint Operation 1,011
Total 2025 9,738
Metrics methodologies and assumptions
- Information provided at the end of the reporting period. Numbers are reported on a headcount basis – at December 31, 2025 unless otherwise noted.
- Permanent employee: An employee with a contract for an indeterminate period (i.e. indefinite contract) for full-time or part-time work.
- Temporary employee: An employee with a contract for a limited period (i.e. fixed-term contract) that ends when the specific time period expires, or when the specific task or event that has an
attached time estimate is completed (e.g. the end of a project or return of replaced employees).
- Non-guaranteed hours employee: An employee who is not guaranteed a minimum or fixed number of working hours per day, week or month, but who may need to make themselves available for work
as required. Examples include casual employees, employees with zero-hour contracts and on-call employees.
- Employment type: Full-time: A ‘full-time employee’ is an employee whose working hours per week, month or year are defined according to national law or practice regarding working time.
- Non-employees: People with contracts with the Company who supply labour (“self-employed people”) or people provided by the Company primarily engaged in employment activities.
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
Adequate wages
The Company’s remuneration practices are designed to ensure fair and equitable treatment in all compensation matters for its employees. LMC provides market-based, competitive wages that are
aligned with local labour market conditions, applicable legal requirements, and collective bargaining agreements across the jurisdictions in which the Company operates to ensure that all employees
are paid an adequate wage.
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To support consistent implementation of remuneration practices, LMC established a global internal compensation standard, complemented by site-specific compensation frameworks aligned to local
market conditions. All operating sites are required to conduct market remuneration reviews to assess competitiveness and alignment with internal standards. Where reviews identify gaps or emerging
risks related to wage adequacy, these are addressed through routine compensation governance and management processes.
Remuneration practices follow a “pay-for-performance” approach, aligning compensation with both Company and individual performance objectives. Responsibility for the implementation and
oversight of remuneration practices rests with the Human Resources function, supported by site-level management and corporate compensation governance.
Incidents, complaints and severe human rights impacts
The Company tracks and monitors data related to incidents, complaints and severe human rights impacts affecting its own workforce through its whistleblower reporting platform. All reports submitted
through the whistleblower platform are reported irrespective of whether they are substantiated, partially substantiated, or unsubstantiated.
Reported data is subject to review by management. The metrics below include incidents and complaints reported during the year, including those associated with operations divested in April 2025
(Neves-Corvo and Zinkgruvan)and those reported by the Joint Operation.
Metric Total Explanation
Number of incidents (including substantiated, partially substantiated and
unsubstantiated) of discrimination including harassment
255 The number reported represents complaints sent to the Company’s whistleblower platform
whether substantiated (in part or in full) or unsubstantiated.
A reported incident corresponds to a report sent to the Company’s whistleblower platform for
which the informant selected the category that he/she determined best corresponds to the
reported facts.
Number of complaints filed through channels for people in own workforce 27 93 The number reported represents complaints sent to the Company’s whistleblower platform
whether substantiated (in part or in full) or unsubstantiated.
A reported incident corresponds to a report sent to the Company’s whistleblower platform for
which the informant selected the category that he/she determined best corresponds to the
reported facts.
Number of complaints filed to National Contact Points for OECD Multinational
Enterprises workforce —
Amount of fines, penalties and compensation for damages as result ($) —
Number of severe human rights issues and incidents connected to workforce — The assessment of severity is informed by applicable regulatory and international human rights
frameworks and considers the scale, scope and remediability of potential or actual impacts.
Amount of fines, penalties and compensation for severe human rights issues and
incidents connected to own workforce ($) —
152
27 Number of complaints filed through channels for people in own workforce excludes incidents of discrimination listed in the previous row.
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Metrics methodologies and assumptions
- Discrimination can occur directly or indirectly. Direct discrimination occurs when an individual is treated less favourably by comparison to how others, who are in a similar situation, have been or
would be treated, and the reason for this is a particular characteristic they hold, which falls under a ‘protected ground’ (e.g. gender, racial or ethnic origin, nationality, religion or belief, disability, age
or sexual orientation). Indirect discrimination occurs when an apparently neutral rule disadvantages a person or a group sharing the same characteristics. It must be shown that a group is
disadvantaged by a decision when compared to a comparator group.
- Harassment is a situation where an unwanted conduct related to a ‘protected ground’ of discrimination occurs with the purpose or effect of violating the dignity of a person, and of creating an
intimidating, hostile, degrading, humiliating or offensive environment.
- An incident is a legal action or complaint registered with the Company or competent authorities through a formal process, or an instance of non-compliance identified by the Company through
established procedures. Established procedures can include management system audits, formal monitoring programs or grievance mechanisms.
- Severity is determined by: (a) scale: how grave or beneficial the impact is for people or the environment, (b) scope: how widespread the positive or negative impacts are. For impacts on people,
scope may be understood as the number of people adversely affected and (c) irremediable character: whether and to what extent the negative impacts could be remediated, i.e. restoring the
affected people to their prior state. Any one of the scale, scope or irremediable character can make a negative impact severe.
- In the case of a potential (not actual) negative human rights impact, the severity of the impact takes precedent over its likelihood. Examples of severe human rights incidents include forced labour,
human trafficking or child labour.
- The metrics are not validated by any external body other than the assurance provider.
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Health and safety performance
100 % of employees and non-employees in the Company’s own workforce are covered by Lundin Mining’s health and safety management system.
Continuing and Discontinued
Operations
2025
Joint Operation
2025
Lost Workdays 1,870 16
Contractor 1,158 16
Employee 712 —
Lost Workdays (without fatality) 1,870 —
Contractor 1,158 —
Employee 712 —
Total Recordable Injuries 53 1
Contractor 28 1
Employee 25 —
Work Related Fatalities — —
Contractor — —
Employee — —
Fatality Rate — —
Occupational Diseases for Employees 11 —
Occupational Disease Rate for Employees 0.36 —
Total Recordable Injury Frequency (TRIF) 1.72 —
Contractor 1.30 —
Employee 2.72 —
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Operated asset’s health and safety metrics disaggregated by operation
Operated Assets
Total 2025Continuing Operations Discontinued Operations
Candelaria Caserones Chapada Eagle Neves-
Corvo Zinkgruvan
Lost Workdays 420 683 450 122 178 17 1,870
Contractor 263 436 350 — 108 1 1,158
Employee 157 247 100 122 70 16 712
Lost Workdays (without fatality) 420 683 450 122 178 17 1,870
Contractor 263 436 350 - 108 1 1,158
Employee 157 247 100 122 70 16 712
Total Recordable Injuries 12 9 13 15 2 2 53
Contractor 10 8 8 0 1 1 28
Employee 2 1 5 15 1 1 25
Work Related Fatalities — — — — — — —
Contractor — — — — — — —
Employee — — — — — — —
Fatality Rate — — — — — — —
Occupational Diseases for Employees 4 — — — 7 — 11
Occupational Disease Rate for Employees 0.32 — — — 6.27 — 0.36
Total Recordable Injury Frequency (TRIF) 0.96 0.92 2.13 17.14 1.79 6.32 1.72
Contractor 1.08 1.02 2.14 — 1.79 7.92 1.30
Employee 0.62 0.52 2.11 19.25 1.79 5.26 2.72
Metrics methodologies and assumptions
- The consolidation of health and safety data is derived from the monthly and quarterly data collection for each of our sites.
- Starting this reporting period (2025), all our rates are calculated per one million hours worked, indicating the number of respective cases per 500 full-time workers over a one-year timeframe.
- Full Time Equivalent ("FTE") is based on reported hours worked divided by 40 hours a week times 50 weeks a year accounting for two weeks vacations.
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- Lost workdays are based on workdays lost after the first day. Lost days do not include days that the injured person is not/would not be scheduled for work. When a fatality occurs, a 6,000 lost
workdays penalty per fatality is added to the calculation following the Mine Safety and Health Administration ("MSHA") recommendations.
- TRIF does not include First Aid injuries. TRIF = [(Medical Treatment Cases + Restricted Duty Cases + Lost Time Cases + Fatality Cases) x 1,000,000]/ hours worked. Note that ESRS equivalent to
rate of recordable work-related accidents is the TRIF.
- Work related fatalities are the number of employees who lost their lives as a result of work-related injuries. Work Related Fatality Rate = (Number of fatalities/Number of hours worked) x 1,000,000.
- Occupational diseases include Silicosis and other work-related pulmonary diseases, Other Lung diseases, Hearing Loss, Muscle-skeletal Disorders, Occupational Stress and Occupational Cancer.
Note that ESRS equivalent to cases of recordable work-related ill health is cases of occupational diseases.
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
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Affected Communities (ESRS S3) – Community Health and Wellbeing
Material impacts, risks and opportunities and their interaction with strategy and business model
Lundin Mining’s activities may result in actual and potential impacts on affected communities, primarily through land use, water use and emissions associated with mining operations. During the
development of new projects and the expansion of existing operations, competing land use priorities and environmental constraints may result in differing or conflicting stakeholder interests. These
circumstances may affect access to land and water resources and may influence environmental conditions relevant to nearby communities and other land users.
In addition to production activities, the Company undertakes exploration, development and decommissioning activities across different stages of the mining life cycle. These activities may occur in areas
where land, water and infrastructure are shared with other industries and stakeholders, including agricultural users, smelting facilities, local businesses and residents located near operational sites or
along transport corridors. As a result, engagement with a diverse range of affected stakeholders is required throughout the life of mine.
During 2025, Lundin Mining completed the divestment of its two operating assets in Europe (Neves-Corvo and Zinkgruvan) and, in early 2026, completed the sale of its mine in the United States (Eagle).
As a result, the Company’s operational footprint and associated IROs related to affected communities are primarily concentrated in Brazil and Chile. The Company operates in regions where mining and
industrial activities have been established for several decades, shaping the socio-economic context of surrounding communities. In these jurisdictions, Lundin Mining is a significant local employer and
relies on the availability of a skilled workforce from surrounding communities to support the continuity and safe operation of its assets. The Company therefore prioritizes sound relationships with local
authorities, community stakeholders and contractors to manage operational risks, support workforce availability and maintain its social license to operate. Lundin Mining’s activities may also contribute
to positive social and economic outcomes in host communities, including employment opportunities, local procurement and community investment. The identification, assessment and management of
both adverse and positive impacts are supported through ongoing stakeholder engagement processes. Understanding community priorities and expectations, and supporting local socioeconomic
development where appropriate, are integral to managing impacts and risks and to maintaining the long-term operational viability of the Company’s assets.
In accordance with the phase-in provisions under the ESRS (“quick fix”), disclosures relating to affected communities for the reporting year are presented in summary form. More detailed disclosures will
be progressively expanded in future reporting periods in line with ESRS requirements.
Description and assessment of material impacts, risks and opportunities
The material IROs related to affected communities have been identified through the DMA. The materiality assessment is discussed under General Information. Refer to the Material impacts, risks and
opportunities section for details about our process to identify material IROs. The table below includes the description of the material IROs related to affected communities for Lundin Mining.
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Description IRO Timeline
(ST, MT, LT) Value Chain
Access to Natural Resources
In the context of climate change, changes in precipitation patterns, increased variability in rainfall, and rising water demand
m a y p l a c e a d d i t i o n a l p r e s s u r e o n w a t e r r e s o u r c e s i n c e r t a i n a r e a s w h e r e w e o p e r a t e . O p e r a t i o n s i n w a t e r - s t r e s s e d r e g i o n s
may contribute to localized competition for water, with potential implications for availability for local users and ecosystems.
Impact materiality
(Potential/Negative) Long term Own operations
Dust, heavy equipment traffic, and other mining-related activities could impact and reduce the productivity of farmland and
grazing lands near LMC operations. In addition, Indigenous communities could lose access to traditional lands and
resources, which could undermine their ability to sustain themselves through traditional practices.
Impact materiality
(Actual/Negative)
Short term, long
term
Own operations, value
chain
Land acquisition for mining infrastructure may lead to resettlement. If not carefully managed this can cause social and long-
term livelihood disruption.
Impact materiality
(Actual/Negative) Short term Own operations
Future land development could lead to deforestation or the loss of vegetation that supports important community needs
such as agriculture, livestock and protection against erosion and floods.
Impact materiality
(Potential/Negative) Long term Own operations
FPIC, Self determination and Cultural Rights
Indigenous communities could lose access to traditional lands and resources, which could undermine their ability to sustain
themselves through traditional practices.
Impact materiality
(Potential/Negative) Short term Own operations
Rapid economic changes or influx of external workers could strain community resources and infrastructure, leading to social
tensions or cultural disruptions.
Impact materiality
(Potential/Negative Short term Own operations
Poor relationship management, including grievances mismanagement and inadequate consultation mechanisms, with
Indigenous communities can lead to formal complaints, regulatory non-compliance, and social unrest, triggering reputational
harm, loss of stakeholder trust, and potentially resulting in increased project costs or operation interruptions.
Financial materiality
(Risk) Long term
Own operations, value
chain
Community Development and Economic Contributions
The Company supports local economic development by creating demand for goods and services from local businesses,
which in turn fosters entrepreneurship and encourages economic diversification. In parallel, the Company contributes to
public finances through the payment of taxes, royalties, and fees, helping to fund government services such as education,
healthcare, and infrastructure. Together, these economic contributions strengthen local institutions and support the
development of more resilient communities.
Impact materiality
(Actual/Positive) Short term Own operations
Strengthen local training and capacity building to expand employment opportunities and support community integration into
a diverse, skilled workforce
Impact materiality
(Actual/Positive) Short term Own operations
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===== SIDA 159 =====
Communities
Information on the characteristics of communities affected by the Company’s activities, including geographic location and key socio-economic features, is set out below.
Candelaria’s direct area of influence includes the towns of Tierra Amarilla and Nantoco, as well as the transportation routes connecting Tierra Amarilla with the Copiapó commune and the Company’s
port facilities in the Caldera commune. The area is characterized by a mix of mining and agricultural activities and continues to attract foreign migration. Indigenous Peoples are also present within the
region.
Caserones’ direct area of influence encompasses the high-mountain sectors of Tierra Amarilla, including Juntas El Potro, Ramada, La Semilla, Pastos Grandes and surrounding rural areas extending
from Nantoco toward the Andean range. These areas are home to both Indigenous Peoples and non-Indigenous populations, with livelihoods that include mining, agriculture and other rural productive
activities within a socially diverse territory.
Chapada’s direct area of influence includes the small towns of Alto Horizonte and Nova Iguaçu de Goiás, both with modest infrastructure and local services. Nova Iguaçu, located three kilometres from
the mine, is the nearest impacted community. While livestock production is important, the local economy depends heavily on the mining sector for direct and indirect employment, local businesses
activity, taxes and royalties. There are no reported Indigenous communities in the area.
The Eagle Mine and Humboldt Mill (sold in January 2026) facilities are both located in Marquette County in Michigan's Upper Peninsula. The mine itself is in Michigamme Township, while Big Bay, in
Powell Township, is the nearest impacted community. Adjacent land use is primarily for commercial forestry and outdoor recreation. The mine’s surface facilities are adjacent to a rock outcrop called
Eagle Rock, a site considered sacred by local Indigenous groups. Haul trucks transport ore over 100km on public roads from the mine to the mill for processing.
Neves-Corvo’s (sold in April 2025) direct area of influence includes the communities of Neves da Graça, A-do-Corvo, Senhora da Graça dos Padrões and Semblana. These small villages, each with
populations in the hundreds, are located near the mining concession.
Zinkgruvan (sold in April 2025) is located in the urban area of Zinkgruvan in Askersund Municipality. The local population is highly homogenous in terms of ethnicity and language.
Interests and views of stakeholders
Lundin Mining seeks to understand the interests and views of stakeholders, particularly affected communities, regarding the impacts and benefits of its operating activities. The Company’s approach
includes structured stakeholder engagement processes supported by tools such as the SLO Index and grievance mechanism procedures. These mechanisms are used to systematically capture
stakeholder perspectives and enhance internal awareness of actual and potential impacts associated with the Company’s activities. Insights derived from these processes inform site-level and
corporate decision-making and contribute to the identification and management of material IROs. Additional information on stakeholder engagement is provided in the General Information section.
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===== SIDA 160 =====
Our policies and approach
Governance policies Relation to the sustainability topic Approach
Human Rights Policy
RMP, RMMS, Code of
Conduct
The policies and management systems described are designed to prevent, mitigate and manage the material
impacts and financial risks related to affected communities, including impacts associated with land use, access to
natural resources, environmental emissions, community health and safety, Indigenous Peoples’ rights, and social
licence to operate. The scope of these policies and related management measures aligns with the value-chain
boundary of the identified impacts and risks, which primarily relate to Lundin Mining’s own operations and their
interactions with host communities, including Indigenous Peoples where applicable.
Under our RMP, Lundin Mining has processes in place to support both community and Indigenous community
engagement.
Lundin Mining’s approach to managing impacts on affected communities is guided by its RMP, RMMS, Human
Rights Policy and Code of Conduct. Together, these governance instruments set expectations for respectful
engagement, impact prevention and remediation, and the protection of human rights across the Company’s
operations and value chain.
Under the RMP and RMMS , the Company has established processes to support ongoing engagement with both
local communities and Indigenous Peoples. The Human Rights Policy complements this framework by reinforcing
commitments to international standards and by providing guidance on the identification, prevention, mitigation
and remediation of adverse human rights impacts. These policies promote open, long-term dialogue with affected
communities and support the establishment of effective grievance and remediation mechanisms.
The Company’s approach to communities is
implemented through site-specific management
planning, ongoing performance evaluation and the
application of appropriate controls throughout the
mining life cycle. Key elements of this approach
include:
- engaging, collaborating and partnering with
stakeholders in host communities to build
trust-based relationships
- encouraging local employment and
procurement
- working with stakeholders to support socio-
economic development and economic
diversification in the regions where the
Company operates, while respecting the
rights, interests and traditions of Indigenous
Peoples and vulnerable populations.
Tracking of
implementation and
effectiveness
The effectiveness of the policies and management systems in managing the identified impacts and risks related to affected communities is monitored through a
combination of site-level performance tracking, grievance analysis, and internal management reviews. Information on community engagement activities, grievances
and social performance outcomes is reviewed through established governance processes, with oversight by management and reporting to relevant Board committees
as appropriate.
These monitoring activities support the identification of recurring issues, the assessment of the effectiveness of mitigation measures, and the implementation of
corrective actions where required.
In addition, the Company provides training on human rights expectations to relevant employees and maintains mechanisms to report, including anonymously, and
investigate grievances related to human rights allegations.
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===== SIDA 161 =====
Third-party alignment:
Lundin Mining’s approach to human rights is informed by, and aligned with, the United Nations Guiding Principles on Business and Human Rights ("UNGPs"). In line with UNGP Principle 15, this approach
incorporates a policy commitment to respect human rights, processes to identify and manage actual and potential adverse human rights impacts, and mechanisms to enable remediation where
appropriate.
In fulfilling its responsibility to respect internationally recognized human rights, as set out in the International Bill of Human Rights and the International Labour Organization’s Declaration on
Fundamental Principles and Rights at Work, the Company’s approach is also informed by leading international frameworks and standards, including those issued by the International Finance
Corporation and the World Bank Group, the OECD Guidelines for Multinational Enterprises, and the Voluntary Principles on Security and Human Rights.
In 2025, Lundin Mining did not receive any reports of human rights allegations involving affected communities, nor did it receive any grievances reported to National Contact Points (NCPs).
The Company works to achieve its human rights-related objectives through systematic and transparent engagement with community stakeholders. This engagement is intended to support constructive
dialogue, enable responsiveness to community concerns, and inform the identification and management of impacts associated with the Company’s activities. At present, this approach is focused on
the Company’s own operations, with work ongoing to further develop engagement processes across the upstream and downstream value chain.
Other supporting systems:
Human Rights Risk Assessments ("HRRAs")
Human Rights Risk Assessments are a component of the Company’s due diligence process. Stakeholder engagement is central to HRRAs, with particular attention to consultation with affected rights-
holders.28 Stakeholder feedback is systematically considered in identifying, preventing, mitigating and, where appropriate, remediating adverse human rights impacts. During 2025, HRRAs were initiated
at Caserones and Eagle. The Caserones HRRA will be finalized in 2026, and its findings will be incorporated into action plans and risk management processes.
Additional information on the Company’s approach to preventing and mitigating human rights impacts is provided in the Fighting Against Forced Labour and Child Labour in the Supply Chains report for
the year ended December 31, 2025. This approach currently focuses on the Company’s own operations, with ongoing work to further extend processes across the value chain.
Taxation
Lundin Mining seeks to comply with the letter and spirit of tax laws in all jurisdictions in which it operates. The Company is committed to fulfilling its taxation responsibilities and to transparency in
payments to governments, as outlined in its Code of Conduct. The Company’s tax strategy supports its overall business strategy and is designed to comply with applicable income and indirect tax
legislation, maintain open, objective and ethical relationships with tax authorities, and manage tax-related risks through a conservative approach. Lundin Mining meets all applicable tax filing and
reporting obligations in relevant jurisdictions, including the timely submission of corporate income tax and related information returns.
Processes for engaging with affected communities about impacts
Lundin Mining engages with affected communities to identify, understand, and manage actual and potential social impacts associated with its operations and value chain. Engagement activities are
guided by the Company’s Social Performance Management Standard and are designed to support structured, transparent, and ongoing dialogue with communities located in proximity to operations, as
well as other relevant stakeholders within the value chain, including contractors and suppliers. The purpose of engagement is to inform the Company’s understanding of community interests, concerns,
161
28 Rights-holders in the context of HRRA are those who are actually or may be potentially impacted by Company activities.
===== SIDA 162 =====
and expectations and to support the management of associated IROs. Engagement with affected communities at all mine sites occurs throughout all mine life stages and is conducted on a regular
basis, including monthly, quarterly, biannual and annual interactions, as well as on an ad-hoc basis where circumstances require.
At Eagle, Candelaria and Caserones, where Indigenous communities are present, site-level procedures and processes have been established to support engagement. These processes include
consultation activities, economic participation opportunities, and the identification and management of cultural and heritage matters, in accordance with applicable legal and regulatory requirements.
At Caserones, formal agreements are in place that define the basis for ongoing engagement activities.
The effectiveness of community engagement processes is monitored through site-level tools, including the SLO Index and analysis of grievance data. Site-level social performance managers hold
operational responsibility for implementing engagement activities and incorporating relevant insights into site-level and corporate management processes.
Grievance mechanism - Processes to remediate negative impacts and channels for affected communities to raise concerns
Lundin Mining has grievance mechanisms in place at all operating sites to enable affected community members and other stakeholders to raise concerns related to the Company’s activities and
associated impacts. These mechanisms support the identification, assessment and remediation of actual or potential adverse impacts, including those related to human rights. Grievance mechanisms
are accessible through multiple channels, which vary by site to reflect local context and stakeholder preferences. Common channels include in-person reporting to site-level social performance teams,
as well as remote channels such as phone calls and messaging applications, including WhatsApp. All grievances received are documented in a consistent manner and are managed in accordance with
site-level procedures to support transparency, traceability and accountability throughout the grievance handling process.
Grievance data from operational sites are consolidated on a quarterly basis and reported to management and the SSTC of the Board, as appropriate. Reporting includes information on grievance
categories, number and progress toward resolution, and is used to support oversight of stakeholder engagement and impact management.
The effectiveness of grievance mechanisms is monitored through both qualitative and quantitative indicators. This includes assessments of user satisfaction with the grievance process and with
grievance outcomes. Awareness of grievance mechanisms among community members is monitored through the SLO Index survey. Information on the Company’s approach to protection against
retaliation is disclosed in the Own Workforce section of this Sustainability Statement.
Actions and resources related to affected communities during the year
During 2025, the Company continued to implement a range of actions across its own operations to prevent, mitigate and manage IROs related to affected communities. Unless otherwise stated, these
actions are ongoing in nature. Actions are designed to mitigate identified negative impacts, strengthen positive outcomes and support the long-term resilience of the Company’s strategy and operating
model. Actions related to affected communities are informed by ongoing stakeholder engagement and are designed to prevent potential adverse impacts and to address and remediate impacts
identified through grievance mechanisms, EIAs, permitting processes and community feedback. These actions are guided by the Social Performance Five-Year Plan and are prioritised based on site-level
risk assessments and community needs. The effectiveness of actions related to affected communities is assessed through grievance trends and resolution outcomes, participation levels in engagement
programs, feedback from community forums, compliance with EIA commitments, and periodic review of social performance indicators at site and corporate levels.
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===== SIDA 163 =====
Managing impacts
- The Company's objective is to foster a clear understanding of impacts, while leading the development and implementation of social management action plans and mitigation measures that
appropriately address prioritized social risks throughout the life of mine. All sites adopt this approach through different activities.
- To address dust issues in communities located nearby, Candelaria has an established neighbourhood blasting, training and monitoring program. This program installs monitoring equipment in
participants’ homes and facilitates training sessions for residents to monitor and build technical knowledge about the process. It allows participants to actively monitor blasting activities and
establish consistent and transparent communications channels with the site team. The complaints and grievance mechanism is actively promoted, and cases received are managed in coordination
with the relevant departments. The site team also receives in-the-moment complaints via WhatsApp social media platform, and can respond within minutes to community concerns. The Program
“Community Encounters” was expanded to include operational staff to regularly present to communities on dust and associated mitigation measures in detail, providing transparent and technical
information to the community. A governance framework was defined with the community, which established a schedule, topics to be addressed, and decision-making mechanisms.
- Indigenous engagement at Caserones remains a priority due to the site’s permitting requirements and the need to manage impacts on Indigenous rights, land use, and livelihoods. In 2025, the site
signed an agreement with three Indigenous communities, establishing a shared governance framework and community investment programs that fulfil EIA commitments and strengthen long-term
relationships. Support to Colla Indigenous Communities continued through infrastructure improvements benefiting thirteen families and the launching the first phase of the Agricultural
Development Program, both aligned with formal agreements. These measures reduce regulatory and social-conflict risk, facilitate compliance with Indigenous-related conditions, and reinforce
Caserones’ commitment to responsible, rights-respecting impact management.
- Candelaria’s port activities interact directly with local fishing organizations, influencing marine conditions and access, which makes these groups a priority impact-management stakeholder. To
mitigate these operational pressures, the site partners with fishing organizations in Caldera to strengthen technical knowledge and sustainable resource-management practices. The 2025
Educational Experiences Program builds local capacity in marine stewardship and organizational resilience, helping fishers adapt to cumulative coastal impacts. This approach reduces conflict
risk, supports long-term coexistence between mining and marine sectors, and contributes to broader regional economic diversification.
- Chapada continued to operate the Multidisciplinary Dust Committee to create a structured forum for addressing community grievances and residents’ perceptions of dust-related impacts linked to
mining operations. The committee brings together community members and site teams to review concerns, share monitoring information, and co-identify practical mitigation measures. This
approach strengthens transparency and ensures that community feedback directly informs impact-management decisions.
Economic diversification
- Integrated Social Programs in Chile: Candelaria and Caserones, in partnership with the Lundin Foundation29, launched two new supplier development programs aimed at strengthening small and
medium-sized enterprises ("SMEs"). This joint program marks the first time both operations have jointly delivered a social investment initiative. The Digital Transformation for SMEs program provides
entrepreneurs with practical access to digital tools and training to modernize businesses, reduce costs, and expand market reach. The Impulsa program supports SME growth by strengthening
business management capabilities, financial planning, and technical skills through tailored academic training and one-on-one mentoring. Developed in collaboration with local partners, including
CORFO (Chile’s national development agency), CORPROA (Atacama's development agency), and Red de Mentores Atacama (local mentorship network), these programs reflect the Company’s
commitment to regional collaboration and sustainable local business development.
- Caserones and Candelaria continued to implement the Competitive Fund Program, which provides local entrepreneurs, business owners and social organizations with resources to establish new
businesses, strengthen existing ventures and develop community initiatives.
163
29 The Lundin Foundation is a Canadian non-profit organization that collaborates with Lundin Mining and other Lundin Group companies to implement and resource long-term community investment
initiatives.
===== SIDA 164 =====
- Chapada continued to advance its Rural Development Program to enhance productivity and build capacity through the provision of seed capital, technical assistance and in-kind support to rural
farmers in the region. This initiative supports improved quality of life and productivity for rural residents, contributes to local development, and helps maintain the Company’s social license
to operate. In addition, Chapada held a Business Forum for the Supplier Development Program to strengthen engagement with local suppliers and promote increased local procurement.
Resources
Financial and human resources to affected communities-related impacts are allocated through the Company’s annual budgeting and operational planning processes. Financial resources are
committed through annual community investment budgets and human resources included are dedicated social performance and community relations personnel at site and corporate levels, supported
by specialist functions where required. Operational resources include grievance management systems, stakeholder engagement tools and the use of external expertise to support assessments,
facilitation, monitoring activities and, where applicable, remediation measures.
With the exception of community investment expenditures disclosed in this Sustainability Statement, the Company does not separately quantify other resources allocated to affected communities, as
these resources are integrated into broader operational and functional budgets.
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and
opportunities
LMC has not developed consolidated long-term targets related to affected communities. Management of this topic is embedded within the Company’s governance framework and is addressed through
the implementation of policies, site-level management and ongoing monitoring of performance through company-wide annual performance objectives. All operations have individual objectives for this
topic, on the basis of their regulatory requirements and voluntary commitments with communities, all of which vary for each mine site. Compliance is verified by internal monitoring done by the
Company.
Company-wide performance objectives are approved by the HRCC and, insofar as they apply to the CEO, by the Board. The performance objective related to affected communities is embedded in our
commitment to improve our SLO Index performance. In 2025, LMC’s annual objective was to improve the procedural fairness ("PF") component of the SLO Index across all sites. PF reflects community
confidence in how concerns are heard, addressed, and integrated into operational decisions. The objective was achieved as 2 of our sites improved their SLO Index score for procedural fairness.
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Metrics related to affected communities
Number of grievances and type
Operation Number of grievances Type of grievances summary
Continuing
Operations
Candelaria 36 Reported grievances primarily relate to issues regarding dust, followed by noise and vibrations. Other grievances received
vary and include damage to property, delays in payments to suppliers and employee-contract relations.
Caserones 20 Reported grievances primarily relate to traffic, noise, late payment and supplier relations, dust, and implementation of
community commitment. Other grievances received vary and include issues related to fauna, request for employment.
Chapada 29 Reported grievances primarily related to issues regarding dust. Other grievances received vary and include issues related to
vibrations, land access, road maintenance/traffic, and water.
Discontinued
Operations
Eagle 5 Reported grievances primarily related to unsafe driving conditions and items falling off trucks. Other grievances received
included an issue related to foul smell at mill water discharge point.
Neves-Corvo — None reported prior to sale of asset.
Zinkgruvan — None reported prior to sale of asset.
Joint Operation
Vicuña
Project 19
Approximately half of reported grievances relate to road conditions and traffic impacts combined, followed by
environmental impacts, land tenure/ownership and delays in payment terms and contractual compliance. The remaining
grievances relate to land tenure/ownership, local purchasing policy, conditions at security checkpoints and communication
channels.
In 2025, no forced labour or child labour issues were raised.
Metrics methodologies and assumptions
- All sites have grievance mechanisms in place to ensure that community members and other stakeholders can voice concerns about our activities and impacts.
- Grievance numbers are validated internally, and each concerns/complaint is documented transparently, in a timely and accountable manner. These grievance mechanisms are available through
different channels depending on the site. The most common methods of registering a grievance are in-person reporting to the social performance team, followed by WhatsApp and phone calls.
- The Company consolidates and reports operational level grievance data to management monthly and quarterly. It also provides updates on grievance types and progress toward resolution to the
SSTC of the Board quarterly, as appropriate.
- Grievances are classified according to the impact reported, the method to report the complaint and other metrics relevant to the management of grievances.
- There were no changes in the underlying measurement methodologies, significant assumptions, limitations, sources and processes to collect data adopted during 2025.
- The metrics are not validated by any external body other than the assurance provider.
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===== SIDA 166 =====
Community investments
($ Million) 2025
Direct Community Investment
Candelaria 3.0
Caserones 3.0
Chapada 1.0
Corporate - Vancouver 1.2
Vicuña Project 0.4
Eagle 0.6
Neves-Corvo —
Zinkgruvan 0.1
Indirect Community Investment
Lundin Foundation 1.5
Total Direct Community Investment 9.3
Total Indirect Community Investment 1.5
Total Community Investments30,31 10.8
These investments supported education, health, culture, community development and small business development. As part of this effort, sites prioritized the execution of their annual investment plans
and aimed to reduce reliance on ad-hoc donations.
Metrics methodologies and assumptions
- Total Community Investment is the result of Direct Community Investment (expenditures at each operation and corporate) plus Indirect Community Investment (expenditures associated with the
Lundin Foundation).
- Investment expenditure for direct investments is provided for the duration of Lundin Mining ownership only.
- In 2025, a different methodology was used to calculate indirect community investments by including salaries of the Lundin Foundation where they related to implementation of community
programs.
- The metrics are not validated by any external body other than the assurance provider.
166
30 This is a non-GAAP measure. See Appendix B Non-GAAP and Other Performance Measures section of this Sustainability Statement.
31 Total community investments associated with Discontinued Operations is $0.8 million.
===== SIDA 167 =====
Economic value generated and economic value distributed ("EVG&D")
EVG&D are measures of Lundin Mining's contribution to the economic development of the regions that the Company operates in.
($ Million) 2025
Economic value generated32 4,478.5
Operating costs 1,756.5
Employee benefits 440.0
Payments to providers of capital 177.1
Payments to governments 308.1
Community investments 10.8
Economic value distributed33 2,692.5
Economic value retained34 1,786.1
Note: Capitalised costs are not considered as they are disclosed separately under CapEx for sustainability purposes.
Metrics methodologies and assumptions
- Direct economic value generated and distributed (EVG&D) includes the following components:
- Direct economic value generated: revenues and interest income.
- Economic value distributed: operating costs, employee wages and benefits, payments to providers of capital, and payments to governments and community investments in jurisdictions where
the Company operates.
- Economic value retained: ‘direct economic value generated’ less ‘economic value distributed’.
- The metrics are not validated by any external body other than the assurance provider.
167
32 This is a non-GAAP measure. See Appendix B Non-GAAP and Other Performance Measures section of this Sustainability Statement. Total economic value generated associated with Discontinued
Operations is $ 410.7 million.
33 This is a non-GAAP measure. See Appendix B Non-GAAP and Other Performance Measures section of this Sustainability Statement. Total economic value distributed associated with Discontinued
Operations is $ 274.4 million.
34 This is a non-GAAP measure. See Appendix B Non-GAAP and Other Performance Measures section of this Sustainability Statement. Total economic value retained associated with Discontinued
Operations is $ 136.4 million.
===== SIDA 168 =====
Governance Information
Business Conduct (ESRS G1)
The role of the administrative, supervisory and management bodies
Lundin Mining’s governance framework defines the roles, responsibilities and oversight arrangements through which accountability for sustainability-related IROs is exercised. The governance
framework is designed to support compliance with applicable laws, regulations and internal policies and to enable effective supervision of sustainability-related matters across the mining life cycle.
The Board is responsible for the oversight of the Company’s strategy, risk management and performance, including with respect to sustainability-related matters. Additional information on the role,
composition and expertise of the administrative, management and supervisory bodies in relation to business conduct is provided in the Governance –Board of directors and executive management
section of this Sustainability Statement.
Material impacts, risks and opportunities and their interaction with strategy and business model
Business integrity and transparency are material to Lundin Mining due to their direct interaction with the Company’s strategy, business model and long-term value creation. Ethical business conduct
supports the Company’s ability to operate responsibly across multiple jurisdictions, maintain access to capital, and build enduring relationships with employees, communities, suppliers, customers
and regulators.
Failures in business conduct may result in adverse impacts and risks, including regulatory non-compliance, financial penalties, litigation, loss of social license to operate, reputational damage and
disruption to operations. Conversely, strong governance and ethical practices contribute to operational resilience, stakeholder confidence and the achievement of both short- and long-term strategic
objectives.
To manage these impacts and risks, Lundin Mining implements established corporate governance processes and internal controls designed to promote transparency, accountability and ethical
behaviour throughout the organization. These processes support the prevention, identification and management of misconduct and form an integral part of the Company’s approach to risk management
and sustainable value creation.
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===== SIDA 169 =====
Description and assessment of the material impacts, risks and opportunities
The material IROs related to business conduct have been identified through the DMA. This materiality assessment is discussed under the General Information section. Refer to the Material impacts, risks
and opportunities section for details about our process to identify material IROs. The table below sets out the description of the material IROs related to business conduct for Lundin Mining.
Description IRO Timeline (ST, MT, LT) Value Chain
Political engagement activities
Engagement with municipal governments may influence local development priorities, which may create opportunities to
support infrastructure and community development, while also giving rise to potential reputational or regulatory risks if
such engagement is not conducted transparently and in alignment with applicable laws and internal governance controls.
This may affect permitting timelines, access to land, or regulatory conditions, with potential impacts on capital allocation
and operational continuity.
Financial
materiality
(Risk)
Short term Own operations
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===== SIDA 170 =====
Our policies and approach
Governance policies Relation to the sustainability topic Our approach
Code of Conduct,
Whistleblower Policy
The policies described are designed to prevent, mitigate and manage the material
impacts and financial risks related to business conduct, including risks associated
with political engagement. The scope of these policies and related management
measures aligns with the value-chain boundary of the identified impacts and risks,
which primarily relate to Lundin Mining’s own operations and its business
relationships.
Lundin Mining’s commitment to ethical business conduct is underpinned by a
structured framework of policies, governance arrangements and internal controls.
This framework establishes clear expectations for integrity, transparency and
compliance and is supported by communication, training and monitoring activities
designed to promote consistent application across the organization.
Policies related to business conduct, including political engagement and interactions
with public authorities, establish expectations for lawful conduct, integrity in
decision-making and responsible stakeholder engagement. These policies are
reviewed periodically and are approved by senior management and the Board.
The Company’s business conduct policies apply to directors, employees and relevant
business partners and are embedded within its broader risk management and
compliance systems to support consistent implementation and accountability.
The Code of Conduct applies to directors, officers, employees, contractors and third-
party agents of Lundin Mining and its subsidiaries. Individuals subject to the Code of
Conduct are required to avoid situations that involve, or could be perceived to involve,
conflicts between personal interests and the interests of the Company. Employees
are required annually to review Company policies and confirm their understanding
and compliance.
The Whistleblower Policy provides individuals with the opportunity to voice any
concerns they may have regarding unethical or unlawful behaviour – including any
known or suspected accounting, financial or auditing irregularities or any other known
or suspected violations of the Code of Conduct across several ethics and compliance
risk areas. The policy establishes a protocol for the receipt, retention and treatment
by Lundin Mining and its subsidiaries of concerns reported from directors, officers,
employees, consultants and contractors (and their employees), shareholders, any
other parties with a business relationship with the Company, and external
stakeholders in this regard.
Tracking of
implementation and
effectiveness
The effectiveness of the policies and management systems in managing the identified business-conduct impacts and risks is monitored through established governance and
oversight processes. Information related to reported concerns, investigations and outcomes is reviewed by management and relevant Board committees as appropriate.
These monitoring activities support the identification of trends, the assessment of the adequacy of controls, and the implementation of corrective actions where required.
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===== SIDA 171 =====
Actions and resources related to business conduct during the year
The Company’s commitment to business conduct relies on internal controls and procedures in place to prevent, detect and address any breaches of the Code of Conduct. Instances are reported
through various channels and with the support of the internal audit team. During the 2025 reporting period, the Company engaged in public policy engagement activities to support various strategic
issues, including climate change for regional development and transition to lower-carbon operations. The Company is a member of the following trade associations and engaged with them for public
policy purposes during 2025.
Site Name of organization Public policy engagement themes
Candelaria Consejo Minero, and various mining industry
memberships
The organization works to improve public understanding of mining, influence sound public policies, and address key challenges
like energy use, water management, and innovation
Caserones Consejo Minero, and various mining industry
memberships
Chapada IBRAM - Brazilian Mining Institute
IBRAMs actions are directed toward building a new perspective for the future of Brazilian Mining by outlining strategies and
leading the sectors transition to an even more productive scenario, with sustainability, safety and responsibility to all those
around it
Eagle
National Mining Association Participation in environmental, regulatory and domestic critical mineral policy in the USA
American Exploration and Mining Association Participate in critical mineral mining policy in the USA
Michigan Manufacturers Association Participate in critical mineral mining policy in the State of Michigan
Zinkgruvan Swemin - Swedish Association for Mines, Mineral and
Metal Producers
Work on climate change topics to promote a sustainable, innovative, and competitive mining industry in Sweden
The Company does not have a designated representative overseeing lobbying activities and is not registered in the EU Transparency Register or in an equivalent transparency register in a Member State.
Targets related to managing business conduct
LMC has not developed consolidated long-term targets related business conduct. Management of this topic is embedded within the Company’s governance framework and is addressed through the
implementation of policies, site-level management and ongoing monitoring of performance, on the basis of their regulatory requirements all of which vary for each mine site. Compliance is verified by
internal monitoring done by the Company.
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Metrics related to business conduct
Lundin Mining has not made any monetary financial and in-kind political contributions during 2025. Lundin Mining’s Code of Conduct establishes that direct or indirect use of the Lundin Mining's funds,
goods or services as contributions to political parties, campaigns or candidates for election to any level of government are prohibited.
Appendices
Appendix A – ESRS Content Index
ESRS Disclosure Requirement Location in Sustainability Statement
ESRS 2: General Disclosures
BP-1 General basis for the preparation of Sustainability Statements "Basis for preparation "
BP-2 Disclosures in relation to specific circumstances " Specific circumstances"
GOV-1 The role of the administrative, management and supervisory bodies "Our Board of directors and executive management"
GOV-2 Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies "Sustainability Governance at Lundin Mining"
GOV-3 Integration of sustainability-related performance in incentive schemes "Integration of sustainability-related performance in incentive schemes"
GOV-4 Statement on due diligence "Statement on due diligence"
GOV- 5 Risk management and internal controls over sustainability reporting "Risk management and internal controls over sustainability reporting"
SBM-1 Strategy, business model and value chain “Strategy, business model and value chain”
SBM-2 Interests and views of stakeholders "Interests and views of stakeholders"
SBM-3 Material impacts, risks and opportunities and their interaction with strategy and business
model
“Material impacts, risks and opportunities and their interaction with strategy and
business model”
“Description of process to identify and assess material risks, impacts and
opportunities”
IRO-1 Description of processes to identify and assess material impacts, risks and
opportunities "Topic Specific Consideration in Identifying and Assessing IROs"
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IRO-2 Disclosure requirements in ESRS covered by the undertaking’s Sustainability Statement "ESRS Content Index"
MDR-P Policies adopted to manage material sustainability matters
“Our guiding sustainability policies”
"Our polices and approach " under Environmental, Social and Governance
sustainability matters.
MDR-A Actions and resources in relation to material sustainability matters "Actions and Resources Related to..." under Environmental, Social and Governance
sustainability matters.
MDR-M Metrics in relation to material sustainability matters "Metrics and Targets Related to…" under Environmental, Social and Governance
sustainability matters.
MDR-T Tracking effectiveness of policies and actions through targets "Metrics and Targets Related to…" under Environmental, Social and Governance
sustainability matters.
ESRS E1: Climate Change
E1-1 Transition plan for climate change mitigation "Planning for climate change mitigation"
E1-2 Policies related to climate change mitigation and adaptation "Our policies and approach under Climate Change"
E1-3 Actions and resources in relation to climate change policies "Actions and resources related to climate change during the year "
E1-4 Targets related to climate change mitigation and adaptation "Targets related to climate change mitigation and adaptation "
E1-5 Energy consumption and mix "Energy consumption and mix"
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions "Gross Scopes 1,2,3 and Total GHG Emissions"
E1-7 GHG removals and GHG mitigation projects financed through carbon credits Not applicable
E1-8 Internal carbon price Not applicable
E1-9 Potential financial effects from material physical and
transition risks and potential climate-related opportunities Phase-in – not reported
ESRS E2: Pollution
E2-1 Policies related to pollution "Our policies and approach" under "Pollution"
E2-2 Actions and resources related to pollution "Actions and resources related to pollution during the year "
E2-3 Targets related to pollution "Targets related to pollution of air"
E2-4 Pollution of air, water and soil "Metrics related to pollution of air"
E2-5 Substances of concern and substances of very high concern Not material
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ESRS E3: Water and Marine Resources
E3-1 Policies related to water and marine resources "Our policies and approach" under "Water and Marine Resources"
E3-2 Actions and resources related to water and marine resources "Actions and resources related to water and marine resources during the year"
E3-3 Targets related to water and marine resources "Targets related to water and marine resources"
E3-4 Water consumption " Metrics related to water and marine resources”
E3-5 Potential financial effects from water and marine
resources-related impacts, risks and opportunities Phase-In – not reported
ESRS E4: Biodiversity
E4-1 Transition plan and consideration of biodiversity and ecosystems in strategy and
business model Not applicable
E4-2 Policies related to biodiversity and ecosystems "Our policies and approach" under "Biodiversity and Ecosystems"
E4-3 Actions and resources related to biodiversity and ecosystems "Actions and resources related to biodiversity during the year"
E4-4 Targets related to biodiversity and ecosystems "Targets related to biodiversity and ecosystems"
E4-5 Impact metrics related to biodiversity and ecosystems change "Metrics related to biodiversity and ecosystems"
ESRS E5: Resource Use and Circular Economy
E5-1 Policies related to resource use and circular economy "Our policies and approach" under "Resource use and Circular Economy"
E5-2 Actions and resources related to resource use and circular economy "Actions and resources related to waste and tailings during the year"
E5-3 Targets related to resource use and circular economy "Targets related to resource use and circular economy"
E5-4 Resource inflows "Resource Inflows"
E5-5 Resource outflows "Metrics related to resource use and circular economy"
ESRS S1: Own Workforce
S1-1 Policies related to own workforce "Our policies and approach" under "Own Workforce"
S1-2 Processes for engaging with own workers and workers’ representatives about impacts "Process for engaging with own workers and workers's representatives about impacts"
S1-3 Processes to remediate negative impacts and channels for affected communities to
raise concerns
"Processes to remediate negative impacts and channels for own workers to raise
concerns"
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S1-4
Taking action on material impacts on own workforce, and approaches to mitigating
material risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions
"Actions and resources related to own workforce during the year"
S1-5 Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities "Targets related to own workforce "
S1-6 Characteristics of the undertaking’s employees "Characteristics of our Employees and Non-Employees" under "Metrics"
S1-7 Characteristics of the undertaking’s non-employees "Characteristics of our Employees and Non-Employees" under "Metrics"
S1-8 Collective bargaining coverage and social dialogue Not material
S1-9 Diversity metrics Not material
S1-10 Adequate wages "Adequate Wages"
S1-11 Social protection Not material
S1-12 Persons with disabilities Not material
S1-13 Training and skills development Not material
S1-14 Health and safety metrics "Metrics" under "Own workforce"
S1-15 Work-life balance metrics Not material
S1-16 Pay gap between women and men Not material
S1-17 Incidents, complaints and severe human rights impacts "Incidents, Complaints and Severe Human Rights Impacts"
ESRS S3: Affected Communities
S3-1 Policies related to affected communities "Our policies and approach" under "Affected Communities"
S3-2 Processes for engaging with affected communities about impacts "Process for Engaging with Affected Communities and Channels to Raise Concerns"
S3-3 Processes to remediate negative impacts and channels for affected communities to
raise concerns "Process for Engaging with Affected Communities and Channels to Raise Concerns"
S3-4
Taking action on material impacts on affected communities, and approaches to
managing material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions
"Actions and resources related to Affected Communities during the year"
S3-5 Targets related to managing material negative impacts, advancing positive impacts, and
managing material risks and opportunities "Metrics and Targets Related to Affected Communities"
ESRS G1: Business Conduct
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G1-1 Business conduct policies and corporate culture "Our policies and approach" under "Business Conduct"
G1-2 Management of relationships with suppliers Not material
G1-3 Prevention and detection of corruption and bribery Not material
G1-4 Confirmed incidents of corruption or bribery Not material
G1-5 Political influence and lobbying activities "Actions and resources related to business conduct during the year"
G1-6 Payment practices Not material
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Appendix B – Non-GAAP and Other Performance Measures
Certain non-IFRS financial measures and supplementary financial measures are included in this presentation. Lundin Mining believes that these measures, in addition to conventional measures
prepared in accordance with IFRS, provide investors an improved ability to evaluate the underlying performance of Lundin Mining. The non-IFRS measures are intended to provide additional information
and should not be considered in isolation or as a substitute for measures of performance prescribed in accordance with IFRS. These measures do not have any standardized meaning prescribed under
IFRS and therefore may not be comparable to other issuers.
Non-GAAP measure Definition Most directly comparable IFRS
measure
Why management uses the
measure
Economic value generated Defined as consolidated revenue and interest income, each reported on an
accrual basis and from both continuing and discontinued operations.
Revenue, Interest income These measures as defined in GRI
provide an indication of Lundin
Mining's contribution to the economic
development of the regions that the
Company operates in.
Economic value distributed Defined as Economic value generated (as defined above), less operating costs,
employee benefits, payments to providers of capital, payments to governments
and community investments (each as defined below) and reported on an
accrual basis from both continuing and discontinued operations.
Production costs, general and
administrative expenses, and
exploration and business
development.
Economic value retained Defined as Economic value generated, less Economic value retained (both as
defined above) and reported on an accrual basis.
Revenue, production costs, interest
income
Operating costs These supplementary financial measures are components of production costs
on an accrual basis from both continuing and discontinued operations.
Operating costs include expenses directly associated with mining activities
(including mining, milling and mine-site administration costs), employee
benefits include salaries, benefits and other payroll costs, and community
investments include donations and other investments of funds into
communities.
Production costs, general and
administrative expenses, and
exploration and business
development.
These measures as defined in GRI are
used to determine the measures of
Economic value generated, Economic
value retained and Operating costs.
Employee benefits
Community investments
Payments to providers of capital Defined as interest expense associated with borrowing and leases, and bank
charges, both on an accrual basis and both from continuing and discontinued
operations. Also includes dividend payments to shareholders of Lundin Mining
on a cash basis.
Finance cost, dividends paid to
shareholders
Payments to governments Defined as current income and royalty taxes on an accrual basis, from both
continuing and discontinued operations.
Current tax expense
177
===== SIDA 178 =====
Economic value generated can be reconciled to revenue as follows:
($ Million) 2025
Revenue - Continuing Operations 4,053.2
Revenue - Discontinued Operations 409.3
Add:
Interest income - Continuing Operations 14.6
Interest income - Discontinued Operations 1.4
Total economic value generated 4,478.5
Operating costs, employee benefits, payments to governments, and community investments can be reconciled to production costs, general and administrative expenses, exploration
and business development and current tax expense as follows:
Total Operations
2025
($ Million)
Operating costs Employee benefits Payments to
governments
Community
investments Other costs Total
Production costs1 1,694.0 395.2 5.1 8.2 123.4 2,225.9
General and administrative expenses 18.7 39.1 — 2.6 3.5 63.9
Exploration and business development 43.8 5.7 — — 0.9 50.5
Current tax expense — — 303.0 — — 303.0
Total 1,756.5 440.0 308.1 10.8 127.9 2,643.3
1 Net of deferred stripping capitalisation
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===== SIDA 179 =====
Continuing Operations
2025
($ Million)
Operating costs Employee benefits Payments to
governments
Community
investments Other costs Total
Production costs1 1,535.5 298.1 — 7.4 107.2 1,948.1
General and administrative expenses 18.7 39.1 — 2.6 3.5 63.9
Exploration and business development 37.0 5.7 — — 0.8 43.5
Current tax expense — — 299.7 — — 299.7
Total 1,591.2 342.9 299.7 10.0 111.5 2,355.2
Discontinued Operations
2025
($ Million)
Operating costs Employee benefits Payments to
governments
Community
investments Other costs Total
Production costs1 158.6 97.1 5.1 0.8 16.2 277.8
General and administrative expenses — — — — — —
Exploration and business development 6.8 — — — 0.1 6.9
Current tax expense — — 3.3 — — 3.3
Total 165.3 97.1 8.5 0.8 16.4 288.0
Payments to providers of capital can be reconciled to finance cost and dividends paid to shareholders as follows:
2025 ($ Million)
Continuing
Operations
Discontinued
Operations Total
Finance costs 105.1 10.5 115.6
Less: Accretion expense on reclamation
provisions (15.5) (4.9) (20.4)
Deferred revenue finance costs (14.7) (1.5) (16.2)
Other (6.1) (1.4) (7.5)
Dividends paid to shareholders 105.6 — 105.6
Total payments to providers of capital 174.4 2.7 177.1
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Appendix C - Cautionary Statement
Certain of the statements made and information contained herein are “forward-looking information” within the meaning of applicable Canadian securities laws. All statements other than statements of
historical facts included in this document constitute forward-looking information, including but not limited to statements regarding the Company’s plans, prospects, business strategies and strategic
v i s i o n a n d a s p i r a t i o n s a n d t h e i r a c h i e v e m e n t a n d t i m i n g ; s u s t a i n a b i l i t y - r e l a t e d p r a c t i c e s , t a r g e t s , g o a l s m e t r i c s , p a t h w a y s , i n i t i a t i v e s , a n d p e r f o r m a n c e e x p e c t a t i o n s , i n c l u d i n g c l i m a t e - r e l a t e d g o a l s ,
emissions reduction targets, anticipated capital allocation in support of the foregoing and their achievement and timing; statements derived from scenario analysis, modelling or assumptions regarding
c l i m a t e c o n d i t i o n s , r e g u l a t o r y d e v e l o p m e n t s , t e c h n o l o g i c a l a v a i l a b i l i t y o r m a r k e t r e s p o n s e s ; t h e t i m i n g , e x p e c t e d i m p l e m e n t a t i o n , e f f e c t i v e n e s s a n d a n t i c i p a t e d b e n e f i t s o f s u s t a i n a b i l i t y - r e l a t e d
a c t i o n s , p r o g r a m s , p r o j e c t s a n d i n v e s t m e n t s ; s t a t e m e n t s r e g a r d i n g t h e f u t u r e s c o p e , c o n t e n t , m e t h o d o l o g i e s o r e v o l u t i o n o f t h e C o m p a n y ’ s s u s t a i n a b i l i t y - r e l a t e d d i s c l o s u r e s a n d r e p o r t i n g p r a c t i c e s ;
and expectations for other economic, business, and/or competitive factors. Words such as “believe”, “expect”, “anticipate”, “contemplate”, “target”, “plan”, “goal”, “aim”, “intend”, “continue”,
“budget”, “estimate”, “may”, “will”, “can”, “could”, “should”, “schedule” and similar expressions identify forward-looking information.
Forward-looking information is necessarily based upon various estimates and assumptions including, without limitation, the expectations and beliefs of management, including with respect to the
C o m p a n y ’ s b u s i n e s s , o p e r a t i o n s , s t r a t e g i e s a n d g r o w t h a n d e x p a n s i o n p l a n s ; t h e a v a i l a b i l i t y o f s u f f i c i e n t r e s o u r c e s , d a t a a n d m e t h o d o l o g i e s t o s u p p o r t s u s t a i n a b i l i t y - r e l a t e d t a r g e t s , a c t i o n s a n d
disclosures; assumptions regarding future climate conditions, water availability, energy supply and regulatory developments used in climate scenario analysis and sustainability planning; that no
significant event will occur outside of the Company’s normal course of business and operations (other than as set out herein); assumed and future prices of copper, gold, silver and other metals;
anticipated costs; commodity prices; currency exchange rates and interest rates; ability to achieve goals; the prompt and effective integration of acquisitions and the realization of synergies and
economies of scale in connection therewith; that the political, economic, permitting and legal environment in which the Company operates will continue to support the development and operation of
mining projects; timing and receipt of governmental, regulatory and third party approvals, consents, licenses and permits (including the RIGI application) and their renewals; the geopolitical, economic,
permitting and legal climate that the Company operates in; legal and regulatory requirements; positive relations with local groups; sanctioning, construction, development, commissioning and ramp-up
timelines; access to sufficient infrastructure (including water and power), equipment and labour; the accuracy of Mineral Resource and Mineral Reserve estimates and related information, analyses and
interpretations; assumptions underlying life-of-mine plans; geotechnical and hydrogeological conditions; assumptions underlying economic analyses (including economic analysis of the Study);
operating conditions, capital and operating cost estimates; production and processing estimates; the results, costs and timing of future exploration activities; economic viability of the Company’s
operations and development projects; the Company’s ability to satisfy the terms and conditions of its debt obligations; the adequacy of the Company’s financial resources, and its ability to raise any
necessary additional capital on reasonable terms; favourable equity and debt capital markets; stability in financial capital markets; the timing of satisfaction of conditions precedent to and the
Company’s ability to meet the conditions of the amended credit facility; the ability of The Company to access committed amounts under its credit facility, including on the anticipated schedule and upon
the satisfaction of certain conditions such as sanctioning Stage 1 of the Vicuña Project; the successful sanctioning, permitting and development of the Company’s Projects (including the Vicuña Project)
and commencement of production; successful completion of the Company’s projects and initiatives (including the Vicuña Project) within budget and expected timelines; and such other assumptions as
set out herein, in the Vicuña Project Technical Report, and in other applicable public disclosure documents of the Company, as well as those related to the factors set forth below. While these factors
and assumptions are considered reasonable by Lundin Mining as at the date of this document in light of management’s experience and perception of current conditions and expected developments,
such information is inherently subject to significant business, social, economic, political, regulatory, competitive and other risks, uncertainties and contingencies that could cause actual actions,
events, conditions, results, performance or achievements to be materially different from those projected in the forward-looking information. The Company cautions that the foregoing list of assumptions
is not exhaustive. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking information and undue reliance should not be placed on such
information. Such factors include, but are not limited to: dependence on international market prices and demand for the metals that the Company produces; political, economic, and regulatory
uncertainty in operating jurisdictions, including but not limited to those related to permitting and approvals, nationalization or expropriation without fair compensation, environmental and tailings
management, labour, trade relations, and transportation; uncertainty with respect to the fiscal, geopolitical, economic, permitting and legal climate that the Company operates in; risks related to the
RIGI application, including if the Project is not designated under the RIGI PEELP regime in a timely manner or at all, or if the RIGI regime does not function as expected and risks arising from such
circumstances; risks relating to mine closure and reclamation obligations; health and safety hazards; inherent risks of mining, not all of which related risk events are insurable; geotechnical incidents;
risks relating to the development, permitting, construction, commissioning and ramp-up of the Company’s projects and operations (including the Vicuña Project); risks relating to tailings and waste rock
and leach management facilities; risks relating to the Company’s indebtedness; risks relating to project financing; the Company’s ability to access capital on acceptable terms if at all; risks related to the
180
===== SIDA 181 =====