Environment
GREEN DEVELOPMENT AND HEADING FOR A ZERO-CARBON FUTURE
Griffin fully understands that transitioning to a low-carbon economy is a major global challenge. As a responsible enterprise, Griffin strictly abides by the Environmental Protection Law of the People’s Republic of China, the Environmental Impact Assessment Law of the People’s Republic of China, the Cleaner Production Promotion Law of the People’s Republic of China and other relevant laws and regulations. Griffin implements a low-carbon strategy, actively promoting the construction of a green mine, studies and applies resource-saving technologies, improves resource utilisation efficiency and implements energy-saving and emission-reduction measures. Griffin aims to reduce any negative impact of its operations on the environment and to ensure that environmental protection is planned and implemented in conjunction with the mine’s operations.
Acting on these principals, Griffin has committed itself to the generation and use of 100% renewable energy, one third of which is already generated via the solar farm at the Caijiaying Mine. A further two 6.3MW wind turbines generating a total of 12.6MW of wind power will be constructed within 2.5km of the Caijiaying Mine in the near future. Once completed, the Caijiaying Mine will have 18.6MW of renewable electrical capacity at peak generation which exceeds the current 18.1MW peak usage. Griffin is currently examining the installation of large-scale battery storage capacity and the purchase of wind or solar energy directly from state owned renewable energy projects in close proximity to the Caijiaying Mine to achieve 100% renewable power at all times regardless of light or wind conditions. Griffin is not aware of any other active mine or operations that can claim to have fully committed to the switch to 100% renewable energy and already be generating a third of its energy from its solar farm.
GREEN MINE CONSTRUCTION
Having been recognised as a “green mine” in China, Griffin has fully implemented PRC national requirements of “developing green mining and building green mines”, strictly following industry standards and norms, and adheres to the policy of “development in protection and protection in development”, and carries out ecological environment protection during the whole life cycle of mining development, such as mine exploration, mining, mineral processing and tailings facility closure, so as to support sustainable mining development and the harmonious coexistence of ecosystems.
Griffin has established and continuously improves its Mining Geological and Environmental Protection Policy and has set up a Green Mine Construction Leading Group, with the operations manager (Mine Manager) as the leader, with relevant leaders in charge as deputy leader, and each production department as a member of the group. Griffin has also formulated a regular green mine training system and performance mechanism, assessment and evaluation system, as well as a green mine construction implementation plan and construction plan. Griffin continues to promote relevant work based on the Green Mine Construction Implementation Plan, and has invested between 5% and 10% of the “total corporate output value” of the “Mine Environmental Protection and Governance Funds” on a regular basis to support green mine construction projects such as coal yard renovation, tailings dam reclamation, road hardening.
In 2024, Griffin advanced green mine construction by investing in research and human resources. Griffin has applied advanced mining technologies, reclamation and greening techniques, and environmental monitoring technologies. Griffin has also enlisted experts from various fields, including geology, environment, ecology, and mining, to guide the planning, implementation, and management of green mining. This has helped improve mining efficiency, mining systems, and integrate ecological restoration and resource efficiency throughout operations.
Responding to Climate Change
Climate change related risks from extreme weather such as heavy rain, snowstorms, floods, typhoons, and suddennatural disasters could disrupt operations, cause closure of the mine and accidents, with consequent economic loss and harm to employees. Griffin strictly abides by the Guidelines on Strengthening Response to Heavy Pollution Weather and Consolidating Emergency Emission Reduction Measures issued by the PRC Ministry of Ecology and Environment and has formulated response plans to climate change related risks. When severe weather occurs, the production plan will be adjusted promptly; production will be shutdown, ore crushing and screening, lead flotation, zinc flotation, concentration, filtration, tailings conveying and other processes will be stopped. Vehicle transportation activities are minimised to avoid dust pollution.
Environmental Emergency Response Plan
In accordance with the requirements of the PRC Interim Measures for the Management of Emergency Response Plan for Environmental Incidents documents such as the Emergency Response Plan for Environmental Pollution Incident in Caijiaying Zinc and Gold Mine of Hebei Hua’ Ao Mining Development Company Limited and Operation Plan for Emergency Response in Heavy Pollution Weather have been drawn up. A special emergency response leadership group regularly conducts environmental risk assessments and, in the event of an incident, takes the necessary measures to complete any rescue safely and efficiently and reduce the extent of environmental pollution and ecological damage.
In addition, Griffin regularly provides training and organises emergency drills to raise the environmental awareness of employees.
Key Environmental Performance Indicators – Emissions:
Emissions | ||
| Environmental performance Indicators | 2024 | 2023 |
| Total GHG emissions (Scopes 1 and Scope 2) (tonnes CO2 equivalent) | 64,865.29 | 71,179.75 |
| Direct GHG emissions (Scope 1) (tonnes CO2 equivalent) | ||
| Including: Diesel | 1,306.68 | 1,544.13 |
| Coal | 12,775.00 | 12,526.29 |
| Indirect GHG emissions (Scope 2) (tonnes CO2 equivalent) | ||
| Including: Purchased electricity | 50,783.61 | 57,109.33 |
| NOx (tonnes) | 1.43 | 1.77 |
| SO2 (tonnes) | 0.23 | 0.32 |
| Dust (tonnes) | 0.30 | 0.35 |
| Wastewater discharge (10,000 tonnes) | 0 | 0 |
| Wastewater discharge intensity (tonnes/RMB million) | 0 | 0 |
| Safely disposed hazardous waste (tonnes) | 69.38 | 63.55 |
| General solid waste generation (10,000 tonnes) | 107.21 | 141.22 |
Notes:
- The greenhouse gas (GHG) inventory includes carbon dioxide, methane, and nitrous oxide. GHG emissions are presented in carbon dioxide equivalents and calculated based on the electricity emission factor in the 2019 Baseline Emission Factors for Regional Power Grids in China issued by the Ministry of Ecology and Environment of the People’s Republic of China and the 2006 IPCC Guidelines for National Greenhouse Gas Inventories (2019 Revision) issued by the Intergovernmental Panel on Climate Change (IPCC). Scope 1 GHG covers GHG emissions directly generated from the businesses owned or controlled by the Company; Scope 2 GHG covers “indirect energy” GHG emissions from the Company’s internal consumption (purchased or obtained).
- Nitrogen oxides, sulfur dioxide and dust mainly emanate from heating boilers.
- In the fourth quarter of 2024, Caijiaying Mining suspended its operation. As a result, the exhaust emissions and greenhouse gas emissions, the comprehensive energy consumption data decreased as a whole compared with the previous year.
Key Environmental Performance Indicators – Energy and Resources Consumption:
Energy and Resource Consumption | ||
| Environmental Performance Indicator | 2024 | 2023 |
| Total energy consumption (MWh) | 110,209.15 | 119,196.89 |
| Direct energy consumption (MWh) | ||
| Including: Diesel | 0.005 | 0.006 |
| Coal | 39,749.74 | 38,975.89 |
| Indirect energy consumption (MWh) | ||
| Including: Purchased electricity | 70,459.40 | 80,221.00 |
| Total water consumption (10,000 tonnes) | 54.39 | 46.97 |
Notes:
- Total energy consumption is calculated based on direct and indirect energy consumption according to the conversion factors listed in the National Standards of the People’s Republic of China General Principles for Calculation of the Comprehensive Energy Consumption (GB/T 2589-2020).
SOLAR FARM
In October 2023 Griffin in partnership with Zhang Jia Kou Guo Ao successfully commissioned a 6MW solar energy generating facility (the “Facility”) at the Caijiaying Mine.
The Facility was constructed and commissioned within 12 months on rehabilitated Mine Tailings Facilities Numbers 1 & 2. The Facility contains 25,753 square metres of solar panel surface area. With the expected arrival of a battery energy saving system, under normal weather conditions, the Facility is expected to be able to supply up to 30% of the Caijiaying Mine’s total electrical energy consumption. During periods of shutdown, the system also has the capacity to direct excess capacity back into the local grid for extra revenue generation.
Griffin provided all the land, approval support with an exclusive 20 year off-take agreement for the renewable energy to Griffin’s local Partner, which installed and will operate the system throughout its life. This Facility demonstrates, yet again, the Company’s long term, industry leading, environmental and community leadership for sustainability and the benefits of socially responsible mining.
Griffin and Zhang Jia Kou Gu Ao are assessing the utilisation of this successful partnership model on the future decommissioned Tailings Facility Number 3 which has the potential to utilise both wind and solar power (subject to a pending study) to make the Caijiaying Mine as close to 100% renewable energy usage as possible.
Green Operation
The Company adheres to the ecological environmental protection philosophy of “Green Mountains and Clear Waters are Mountains of Gold and Silver” and integrates low-carbon, energy-saving, and emission reduction principles into daily operations. Griffin strictly abides by the Environmental Protection Law of the People’s Republic of China, the Environmental Impact Assessment Law of the People’s Republic of China, the Clean Production Promotion Law of the People’s Republic of China and other relevant laws and regulations. Griffin has developed various management standards, including the Environmental Protection Management Policy, Environmental Responsibility Policy, and Environmental Protection Training Policy, actively fulfilling its ecological protection responsibilities and exploring new models of green development.
Griffin continues to improve its environmental management system, optimises internal management structures and functional allocations. The Environmental Protection Department, as an independent department, takes the lead in daily environmental protection and promotes the development of green mining practices, helping the Company achieve green and sustainable development with higher standards. Griffin has obtained ISO 14001 environmental management systems certification and completed its annual review in 2024, ensuring that the environmental protection management system aligns with international standards.
| Risk/Opportunity type | Risk/Opportunity Description | Response Measures | |
| Physical risks | Acute risks | Frequent occurrence of extreme weather, such as rainstorms, floods and typhoons, may lead to environmental and safety accidents, such as mine closure and failure of tailings dams, which may damage the health and safety of Griffin’s personnel and property. | Griffin has established an efficient emergency relief mechanism including early warning of extreme weather. In the event of extreme weather Griffin will adjust its production plans, and prepare for production suspension, stopping all operations, minimising vehicle and other transportation activities. ensuring that all emergency measures are in place. |
| Chronic risks | Continuous high or low temperature weather may lead to accelerated degradation of rocks and intensified soil erosion, which will affect the stability and mining conditions of mines and lead to the increase of infrastructure construction and maintenance costs. | Griffin undertakes environmental management and ecological protection, optimising infrastructure construction, to minimise the impact of mining activities on the environment by formulating systematic mining plans and implementing environmental protection measures. | |
| Transformation risks | Policy and legal risks | National and regulatory agencies place ever higher requirements regarding the management of greenhouse gas emissions and the disclosure of information related to climate change. If enterprises fail to adapt to policy changes in time or fail to meet relevant disclosure requirements, they will face inquiries, warnings, fines or enforced shut downs from regulatory agencies. | Griffin pays close attention to changes of PRC national policies including that concerning climate change, energy conservation and environmental protection, analysing the possible impact of new policies on operations, formulating corresponding management measures, and making preparations in advance by increasing investment in energy conservation, carbon reduction technologies and optimizing energy structures. |
| Market risks | Market pressure for green, low-carbon and environmental protection concepts and the improvement of environmental protection requirements may lead to the increase in production costs, loss of product markets and enterprise value. | Griffin pays attentions to the expectations of the market for mining enterprises, increases the utilisation of clean energy, minimizes waste and pollution, and where possible improves product quality. | |
| Technical risks | Not utilising latest technological, energy efficient processes resulting in uncompetitive operations and potential losses. | Griffin engages technological experts, investments in technology research and development, and works closely with scientific research institutions and universities to ensure it uses the most up to date and environmentally friendly technologies. | |
| Reputation risks | Poor performance in dealing with climate change may cause stakeholders to lose confidence in the Company damaging its reputation and image. | Griffin regularly reviews its development strategy and makes timely adjustments according to the current circumstances. Communication is maintained with stakeholders, taking account of their views in the development of the business. | |
| Opportunities | Products and services | The development and application of green, low-carbon products are expanding, particularly with the increased demand for metals as the world seeks to go carbon neutral and move towards e commerce. | Griffin seeks to produce high quality metals in concentrate that are increasing in demand. |
| Resources and cooperation | Collaboration with industry peers or other professional institutions creates more opportunities, for improvements in operations and efficiencies with attendant cost savings. | Griffin seeks connections with industry organizations, to collaborate on improvements to operational efficiencies and product quality. | |
