04 November 2021
Savannah Resources Plc
(AIM: SAV, FWB: SAV and SWB: SAV) ('Savannah' or the 'Company')
Matching the ICMM's Net Zero Scope 1 & 2 Commitments
With the 26th UN Climate Change Conference of the Parties ("COP26") now underway, Savannah takes the opportunity to endorse the recent commitment made to a goal of net zero Scope 1 and 2 greenhouse gas ("GHG") emissions by the members of the International Council on Mining and Metals ("ICMM") by 2050 or sooner. Savannah is committed to moving towards the same Scope 1 and 2 net zero emissions goals but doing this in the 2020s and 2030s during the operating phase of its wholly owned Barroso Lithium Project (the "Barroso Project", or the "Project") in northern Portugal. Furthermore, in line with the ICMM membership, Savannah is additionally targeting the reduction of its Scope 3 emissions. Producing a 'net zero' lithium product at the Barroso Project would help to ensure that lithium entering the European value chain generates the maximum environmental benefit it can when operating in batteries.
· Scope 1 emissions: In line with the commitment being made by the ICMM members, Savannah is also actively engaged with suppliers of mobile mining equipment to identify suitable zero-emissions models which are expected to become available during the operating phase of the Project
· Scope 2: From the start of its operation, the Barroso Project will benefit from the approximate 60% renewable energy contribution to Portugal's grid power, however, Savannah is targeting the provision of 100% renewable power to the Project
· Savannah expects to have 100% renewable power provision in place and be introducing zero-emission mining vehicles within the first five years of production. This would ensure the majority of the Project's operating phase is undertaken with Scope 1 & 2 emissions being actively managed towards zero
· Savannah will also evaluate opportunities to reduce, eliminate or partially or fully offset emissions generated in the initial production phase so that the 'life of Project' emissions are minimised
· Scope 3: Like the ICMM membership, Savannah is also targeting the reduction of its Scope 3 emissions which includes off-site transport of product and raw materials. Savannah expects to collaborate with its future contractors and customers on this goal
· For the Barroso Project Environmental Impact Assessment study, consultancy Ecoprogresso estimated that, when operating, the Project would produce a maximum of c.62,000t CO2 equivalent emissions per annum across Scopes 1 and 2, and a maximum of 96,200t CO2 equivalent emissions per annum across Scopes 1-3
· By reducing the Project's Scope 1 and 2 emissions to zero, Savannah would reduce the Project's overall emissions during its operating phase by over 60%
· Portugal's national GHG emissions in 2019 were approximately 60 million tonnes CO2 equivalent per annum*. Hence, the Barroso Project, prior to any specific emissions reduction activities being taken, would have added just 0.16% to Portugal's national emissions if it had been operating in 2019
· Savannah estimates that the lithium from the Barroso Project could help to remove approximately 100 million tonnes of CO2 from the EU transport sector once it is active in electric vehicle batteries
David Archer, CEO of Savannah said: "Savannah welcomes the commitment being made by the major mining companies that make up the ICMM's membership to reducing Scope 1 and 2 emissions to net zero by 2050, or earlier. Savannah hopes to achieve the same goals but during the operation of its Barroso lithium Project in the 2020s and 2030s and will also look to reduce the Scope 3 emissions that relate to the Project. This will ensure that the lithium from Barroso enters the value chain with the smallest possible emissions footprint and in turn will help to maximise the environmental benefit of the subsequent lithium-ion batteries produced. Savannah's efforts to minimise the Barroso Lithium Project's emissions footprint will be matched by its commitments to other environmental goals including water stewardship and energy use, and using the Project to catalyse long-term socio-economic development in the Barroso region."
*2019 national emissions data from: https://rea.apambiente.pt/content/greenhouse-gas-emissions?language=en
Scope 1-3 definitions
· Scope 1 emissions relate to the direct GHG emissions that a company produces from owned or controlled sources, for example from running petrol or diesel vehicles
· Scope 2 emissions relate to a company's indirect GHG emissions from the generation of purchased electricity and other forms of non-renewable power
· Scope 3 emissions cover all other indirect emissions that occur in a company's value chain, for example the transport of raw materials and finished products
About the International Council on Mining and Metals
Created in 2001, the International Council on Mining and Metals brings together 28 mining and metals company members and over 35 national, regional and commodities association members, to strengthen environmental and social performance and serve as a catalyst for change, enhancing mining's contribution to society. As a membership commitment, every ICMM company member adheres to the Council's 10 Mining Principles, which were first set in 2003 and have been subsequently enhanced, incorporating comprehensive environmental, social and governance requirements, robust site-level validation of performance expectations and credible assurance of corporate sustainability reports with annual disclosure. Over the years a series of 8 position statements have been developed to accompany and strengthen the ICMM's principles.
This Announcement contains inside information for the purposes of the UK version of the market abuse regulation (EU No. 596/2014) as it forms part of United Kingdom domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR").
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For further information please visit www.savannahresources.com or contact:
Savannah Resources PLC
David Archer, CEO
Tel: 44 20 7117 2489
SP Angel Corporate Finance LLP (Nominated Advisor)
David Hignell / Charlie Bouverat
Tel: 44 20 3470 0470
finnCap Ltd (Joint Broker)
Christopher Raggett/ Tim Redfern
Tel: 44 20 7220 0500
WH Ireland Limited (Joint Broker)
Jessica Cave/ Ben Good (Corporate Finance)
Adam Pollock/ Jasper Berry (Corporate Broking)
Tel: 44 20 7220 1666
Camarco (Financial PR)
Nick Hennis / Gordon Poole
Tel: 44 20 3757 4980
Savannah is a diversified resources group (AIM: SAV) with two development stage projects, the Barroso Lithium Project, a hardrock lithium project in Portugal which has the largest spodumene lithium resource in Europe, and the world-class Mutamba Heavy Mineral Sands Project in Mozambique, which is being developed in a consortium with the global major, Rio Tinto. The Board is committed to serving the interests of its shareholders and to delivering outcomes that will improve the lives of the communities we work with and our staff.
The Company is listed and regulated on AIM and the Company's ordinary shares are also available on the Quotation Board of the Frankfurt Stock Exchange (FWB) under the symbol FWB: SAV, and the Börse Stuttgart (SWB) under the ticker "SAV".