Anglo Pacific’s core business is investing in the business of others and Anglo Pacific does not directly operate any of its assets and hence does not control or influence the operations of any of the properties over which it has an interest. The projects on which the Company has royalties and streams are owned and operated by independent mining companies which are typically publicly listed.
We are nevertheless committed to responsible mining extraction and seek to address environmental, social and governance issues through a combination of the following:
- Our policies which guide investment decisions
- Our due diligence process for new investments
- Our contractual rights in our royalty and stream agreements
- Monitoring investments for their adherence to adequate standards
The approach taken by Anglo Pacific has generated value for shareholders and has allowed Anglo Pacific to acquire royalties and streams on projects operated by some of the best operators in the industry. Anglo Pacific is committed to considering potential partnerships with its operators to support appropriate environmental and social initiatives in the communities associated with its producing assets.
In terms of Anglo Pacific’s own environmental impact, the Company’s carbon footprint is very small. Anglo Pacific operates solely within one office environment with a small workforce. The Company has 10 employees located at its head office in London.
When conducting due diligence, environmental, social and governance issues are considered as these are critical to the long-term success of a project and the industry generally, which
in turn, is key to Anglo Pacific’s success. Anglo Pacific will typically assess the following as part of its due diligence:
- community initiatives and engagement with indigenous peoples
- safety records
- whether the operator is committed to the principles of the International Council on Mining & Metals or other relevant standards
- water management and reduction plans
- other environmental programmes and initiatives put in place by the operator including carbon reduction and biodiversity protection
- operating plans and closure plans
- workplace standards, protections and policies
Following the completion of due diligence, if management proposes to proceed with a transaction in excess of a threshold amount,
it must first seek Board approval. Below this threshold amount, management has discretion to proceed with an investment but must report the transaction to the Board in order to refresh its executive authority before being able to proceed with another investment.
The due diligence process will vary in each case as Anglo Pacific deems necessary or appropriate in the circumstances, all applied
on a risk-adjusted basis. For instance, the purchase of newly created royalties or streams, requiring the negotiation of a binding agreement with the operator of a project, will typically permit more comprehensive due diligence than the acquisition of existing royalties where Anglo Pacific is acquiring royalty interests, often within a royalty portfolio on an as-is, where-is basis, from a third party rather than the operator. In such cases, Anglo Pacific must rely on the limited information provided by the third party as well as any publicly available information with respect to the operator and the project. The due diligence process will also vary based on the
jurisdiction, type of mineral, and whether the project is an exploration, development or producing project, among other things.
Anglo Pacific is committed to an environmental policy of collaborating fully with statutory authorities, local communities and other interested parties in order to limit any potential adverse impacts of its activities on the natural and human environments associated with its operations. The nature of the Group’s royalty investments is such that it does not operate any of the properties
underlying its royalty portfolio and, consequently, it does not always have the ability to influence the manner in which the operations are carried out. Nevertheless, a responsible approach to a project’s environmental impact and its sustainability management is essential to the success of the project over its life.
As part of the Group’s investment decision process, careful consideration is given to the environmental aspects of any potential asset purchase during the due diligence phase. In particular, the Group typically engages with consultants who have the requisite expertise to ensure that it can consider and, if necessary, mitigate any risks in this regard to a properly maintainable level. In 2017, as part of the Brazilian Nickel agreement, Anglo Pacific engaged an independent consultant to conduct an environmental review relating to the project. No breaches were identified as part of this process. The Group expects employees to address environmental and sustainability responsibilities within the framework of normal operating procedures and to look to minimise waste as much as economically practicable. The Audit Committee is responsible for periodically reviewing the Group’s environmental practices and for monitoring their effectiveness.
Anglo Pacific acknowledges that, whilst its activities have little direct contact with communities, it can positively influence the social practices and policies of companies it conducts business with. Positive social and community relationships are essential to profitable and successful mining activities. The Group endeavours
to ensure that companies it works with have appropriate procedures in place to facilitate this. More specifically, Anglo Pacific’s investment decision process for potential asset purchases involves due diligence relating to the full range of CSR issues, including the social and community aspects of the project. As part of its Brazilian Nickel agreement, Anglo Pacific reviewed the social and community factors associated with the Piauí Project. No issues were identified as part of this process.
The debate on the role of business and human rights has gained increasing prominence in recent years. Anglo Pacific welcomes this focus as respect for human rights is implicit across the Group’s employment practices. Further, a commitment to human rights is an important part of any successful organisation. As part of the Group’s investment decision process, if necessary, consultants with the requisite expertise are engaged to assist in identifying and mitigating any such risks.
The Group’s employees are instrumental to its success, and it respects and values the individuality and diversity that every employee brings to the business. As at December 31, 2017, 50% of the Group’s employees were female as the Group had 10 employees, five of whom were female. In terms of the Company’s Board of Directors, there were six Directors, five of whom were male and one of whom was female. Prior to any appointment to the Board, the Nomination Committee gives due regard to diversity and gender with a view to appointing the best placed individual for the role.
The Group recognises that it has more to do in encouraging and supporting diversity and hopes to be able to identify and develop talent at all levels in the organisation as the Group continues to grow.
Anglo Pacific is committed to maintaining the highest standards of integrity in all areas of its business and to maintaining its reputation for fair dealing. The Group does not offer, give or receive bribes or inducements whether directly or through a third party. The Group has policies and procedures in place to ensure that all Directors, officers, employees, consultants, advisors, business partners, and anyone else who may be acting on its behalf, are aware of their responsibilities in this area. The Group actively promotes a transparent approach to all of its business dealings and expects employees to adopt a zero-tolerance attitude to corruption. Employees are encouraged to report any potential or apparent misconduct in accordance with the Group’s internal whistle-blowing policy and any employee that refuses to pay bribes, or raises any issues honestly, and in good faith, will be supported by the Group.
The Group chooses business partners and counterparties carefully, based on merit and reputation, and only works with persons of known integrity, who it believes will act consistently with its own standards. The Group does not make facilitation payments. Where business is conducted in countries with laws that are less restrictive than the Group’s policies and procedures, it will seek to follow its own policies and procedures, promoting its standard of integrity wherever possible.
The health and safety of the Group’s employees is of fundamental importance and is a responsibility it takes seriously. The Group’s small size allows the day-to-day responsibility to remain at Board level, being monitored by the Chief Executive Officer. The Group has both a health and safety policy and office risk assessments in place, which are reviewed on an annual basis. Furthermore, a commitment to health and safety is a fundamental component of any mining project, and, as part of the Group’s investment decision process, consultants with the requisite expertise are engaged to assist in identifying and mitigating any such risks
The UK Government requires that UK listed companies should report their global levels of greenhouse gas emissions in their Annual Report. Anglo Pacific is a relatively small organisation, with 10 employees, which means that any emission sources within its operational and financial control, such as business travel, purchase of electricity, heat or cooling by the Group, are not material in their impact. As the management and operation of the underlying mines generating the Group’s royalty and stream income is outside its control, it is unable to report on these emissions.