Thank you. Hello, and welcome to MMG's 2023 sustainability briefing. I'm Andrea Atell, Head of Corporate Affairs and External Relations, and I welcome all of our participants today. Today's presentation will provide an overview of how we operate, the progress we're making towards our sustainability goals, and how we are minimizing risks to the safety of our people, heritage, and the environment. Joining us today are functional leaders from across our business, who are responsible for the management of our key sustainability deliverables. You will soon hear from each of them. To kick us off, I'd like to invite Troy Hey, Executive General Manager, Corporate Relations, to speak. Troy represents our sustainability function on the MMG executive team.
Welcome to our participants today. I'd like to thank you for your engagement and interest in this, our second sustainability briefing. I'd also like to take the opportunity to acknowledge the custodians, both current and traditional, of the lands and resources that host our international operations. We are guests of these custodians wherever we operate, and we pay our sincere respects. Finally, before I start, we'll cover this later in the presentation, but I would like to extend my sincere and deep condolences to the families, loved ones, and colleagues of Trevor Davis and Dylan Langridge, who lost their lives earlier this year at our Dugald River mine. MMG was founded in 2009 to mine for progress. Today, our global portfolio supports copper, zinc, and soon cobalt production, products that are critical to achieving the global decarbonization electrification targets.
We recognize that producing commodities critical for a low-carbon future should be backed by robust sustainability practices in how they are mined. I'd like to also acknowledge the support of China Minmetals Corporation, our major shareholder, now holding approximately two-thirds of available shares. We remain for over 12 years, the only majority Chinese-owned mining company, member of the International Council on Mining and Metals, the world's leading organization promoting sustainable development for our industry. MMG's new vision is to be a leading international mining company for a low-carbon future, with sustainability at our core. In December 2022, the MMG board approved an updated MMG strategy, including a revised vision and ambition. While the overall strategy remains consistent, our new vision sets a clear direction for us as a leading international mining company, providing the materials that are essential for a green energy transition.
Our new ambition maintains a focus on growth and now includes diversification of assets, commodities, and jurisdictions to bring together the best of MMG with our Chinese and international experience. We are confident this future focus will position us well to continue to create wealth and share those successes with our people, host communities, and shareholders. The need to take meaningful action on climate change is becoming more urgent for every government, organization, and individual, particularly as we have seen more extreme weather events and significant challenges related to water and food security. The minerals we produce are essential to ensuring that we can successfully transition to a more sustainable world. We remain very confident in the medium to long-term outlook for copper, zinc, and cobalt, particularly as the global shift towards green energy sources intensifies.
The data outlined on this slide demonstrates a significant demand outlook for our products. As an industry, we're also facing challenges, including greater demands from host communities, reducing our operational carbon footprint, and delivering growth in a carbon-constrained world. We recognize that stakeholder expectations are also rising in terms of performance across the non-financial metrics, environment, climate, social performance, and governance, among others. We seek to play an active role in our industry's representative bodies. MMG is an active member of our industry's leading organizations, including our membership with the ICMM, which we joined in 2009 when the business was formed. As a member of ICMM, we have aligned our approach to sustainability with the organization's mining principles and eight additional position statements, which provide a best practice framework for the mining and metals industry.
I will now hand over to Jorge to provide an overview of our group-level safety performance.
Thank you, Troy. I'm Jorge Franco. I'm the Head of SHE, which is Security, Safety, Health, and Environment in MMG. Please, before I provide an overview of our safety performance, I will take a moment to talk about the tragic incident that occurred at our Dugald River mine in Queensland earlier this year. We have all been deeply affected by the deaths of our colleagues, Trevor Davis and Dylan Langridge, who were employed by our contractor, Barminco. Preliminary investigation have provided us with an understanding of the causes behind this incident. Based on our current understanding, the incident arose after backfill material was incorrectly removed from a stope during production activities during the night shift on the February 14th . Given the volume of material that was removed from the stope, a void was created.
During the day shift of February 15th , a light vehicle with Dylan and Trevor was driving across the top of the stope and fell into the stope void, causing the fatal injuries. As a mandatory control measure to prevent incorrect voiding were in place at the time of the incident, but were inadvertently breached. An alternative control measure in the form of a concrete barrier, 2 m high and 50 cm thick, has been installed in front of all backfill stopes. This control was tested, proven to be effective, and implemented throughout the mine with the approval of Resources Safety & Health Queensland. We continue to extend our sincere and heartfelt condolences to the families of Trevor and Dylan.
As we look into the presentation, the number of significant events with energy exchange, which are events where we were very close to a serious injury or a fatality, we can see from past experience that this is not only an indicator of a safety risk and safety performance, but also a valuable learning opportunity for our business. Our focus is on continuing to reduce these type of events through the effective implementation of the critical controls and the learning from the investigation's findings. In our 2022, total number of significant events with energy exchange was 22 events for the whole organization. For the year to date, 2023, we are currently sitting at 11 of those events. Even though this number is reducing, it is still, we still have those events which we work throughout to eliminate these events.
The 2022 TRIF, Total Recordable Injury Frequency rate, was 21.25 in 2022, and year to date, 2023, at the end of May, has decreased to 1.19. This is, of course, a combination of increased exposure hours and less injuries in this period of time. Also, in the graph, you can see how the three-month moving average is below the 12-month moving average in the month of May, which is demonstrating a good safety improvement over the last three months. We need to maintain this under the 12-month moving average, so we keep a better safety performance. At MMG, there is nothing more important than ensuring that our people can return home safely to their loved ones.
To ensure we are taking practical steps to eliminate injuries, we will continue to review the effectiveness of our critical risk controls and encourage the proactive reporting of safety events. I will now hand over to Jorge de Carvalho.
Thank you, Jorge. Before I start, I would like to introduce myself. I am Jorge Carvalho, the Head of Sustainability and Social Performance. As you may be aware, we recently released our 2022 sustainability report, which is now available on our website. In preparing our report, and in line with our value of continuous improvement, we want to do better. MMG aligns its reporting with global recognized platforms, such as the Global Reporting Initiative and the Hong Kong Stock Exchange Listing Rules. We are also committed to complying with reporting requirements and the performance expectations that are aligned to our memberships of the International Council on Mining and Metals, the Voluntary Principles on Security and Human Rights, among others, in addition to fully complying with legal requirements in each of our operating jurisdictions.
Our memberships, external commitments, and internal targets we set ourselves inform our approach to sustainability. At MMG, we mine for progress. It is a strong belief in the potential of mining to contribute positively to the communities that drive many of us to do the work we do. However, many people have wondered, what does progress mean, and how does MMG concretely contribute to sustainability? In late 2022, MMG ExCo and board approved an update to MMG's sustainability framework. This framework guides our approach to sustainability and directs our activities based on three key focus areas: people and communities, environmental stewardship, and being a trusted and responsible producer. As we move through the rest of this presentation, we will outline our activities against each of these pillars.
This update structures our approach to sustainability and the three key pillars, seven focus areas, and 17 material topics, is aligned with our internal and external reporting requirements. As part of our annual materiality process, we identify 10 internal indicators and measures that help us report against our material issues to our board on a quarterly basis. Our sustainability framework is being launched across MMG, work is being undertaken to each site to align existing work streams to this new approach. We will also continue to streamline our reporting and data collection processes to reduce the burden on sites and ensure everyone understands why we report what we do. Sustainability is not owned by 1 area or person. It belongs to everyone at MMG and is core to the work we all undertake.
MMG respects human rights of our employees, contractors, workers in our supply chains and communities in which we live and operate, and other affected stakeholders. We recognize that some of the jurisdictions where we are based present unique human rights challenge. We take a risk-based approach and prioritize our efforts in these high-risk jurisdictions to identify, prevent, and address any human rights harm. Our ongoing commitment is outlined in our human rights policy and our approach to managing human rights risk within our broader risk management framework, as well our code of conduct, our supplier code of conduct, employment and procurement processes, whistleblower framework, risk analysis activities, security management, social engagement, social investment, and site grievance mechanisms. Human rights is a material risk for MMG, and is across the three pillars of our sustainability framework.
It is represented at the corporate level by the Executive Code of Conduct and People Committee, as well as the Governance, Remuneration, Nomination and Sustainability Committee of the board, which is charged with confirming compliance with our human rights framework, which includes the Voluntary Principles Initiative Action Plan, compliance with Australian modern slavery legislation across our entire business, and reviewing any human rights grievance received through site-specific grievance mechanisms. MMG Human Rights working groups have been established in Peru, the DRC, and Australia, to further support this work in collaboration with the Code of Conduct and People Committee. We also seek to make sure our stakeholders, including our employees, are confident to report instances of unacceptable conduct without fear of intimidation or reprisal.
We are a full member of the Voluntary Principles on Security and Human Rights Initiative, which is a global membership-based, multi-stakeholder platform dedicated to sharing best practice and mutually supporting the implementation of the Voluntary Principles. All of our private and public security teams comply with the Voluntary Principles on Security and Human Rights, and are trained on it before they start working at any of our operations. In addition, they are either signatories or agree in writing to comply with the International Code of Conduct for Private Security Service Providers and the Voluntary Principles on Security and Human Rights, as I mentioned before. During 2022, MMG had recorded no PPSHR breaches, no security breaches. I will now hand over to Claudio, who will provide an overview of our work to build strong partnerships with our communities near Las Bambas.
Good morning, everyone. Thank you, Jorge. My name is Claudio Cáceres. I'm the Legal Affairs and Land Access Manager at Las Bambas. As we all know, our Las Bambas operation has continued to face challenges with social conflicts and uncertainty impacting our people, our operation, and our business more broadly. While the team on the field continues to work hard to manage these challenges, and are the people best equipped to do it, Las Bambas has decided it's time to seek a new path forward. We have been working very hard over many months to put together a new program, one that will seek to answer the following question: How do we create a sustainable approach to the management of social issues that will allow us to operate and grow Las Bambas to full capacity?
This program is named Corazón de Las Bambas, Heart in English, as a reminder of the importance of Las Bambas for the communities and region in which it operates. If the heart of Las Bambas beats, everyone benefits. The program has been tasked with the implementation of the Las Bambas social and analysis strategy, developed and approved in by the Executive Committee, and will consist of eight key projects. The team that has been assembled in Las Bambas is multidisciplinary, with representatives from across the business from all teams, to ensure we gain the greatest insight possible throughout this process. It will also be supported by an external PMO and a core team from the head office, to ensure alignment with MMG systems and processes, as well as international best practice.
More importantly, it will be based on listening very close to communities and responding to their aspirations for development. The program has been launched in May this year, as I mentioned before, with 8 key project streams designed to build capabilities and share learnings. The streams are designed to run individually, so that together we can create a sustainable model to work with our communities, to allow us to operate and grow Las Bambas to its full capacity. The program has three different fronts. The first one is, as I mentioned before, the PMO. The second one is focused on prioritize strategic projects, and the third one is related to change management. The streams focus on key areas, including developing a new model for engagement and building a social management governance structure to implement and sustain the new approach.
Social investment model and a financial approval process that supports our social investment. Developing a shared value chain that includes local supply and also local employment. Reviewing land purchasing and agreements model. Evaluating social challenges and alternatives for logistics transport. All of this reinforced by building leadership capabilities across our communities. As I mentioned before, they are designed separately, but with the intention to share the insights and strategy developed to build comprehensive new model going forward. We know that by promoting greater participation and building meaningful relationships, we can take a step forward to reducing social pressures at Las Bambas and be in a better position to manage any social conflict in the future. Thank you. I will now pass back to Troy.
Thank you, Claudio. There's no program more important for our business and local communities than Corazón de Las Bambas, It has the full support of our board and management to create success. I'd like to now move on to our diversity and inclusion strategy. Our 2023 MMG business plan sets out a metric for success for all of us to promote and encourage diversity and inclusion across MMG. We know that gender diversity is critical to our business, There is a positive and meaningful relationship between gender equality and equity, and productivity and safety practices. We also acknowledge how difficult we have found this journey so far. We are committed to increasing the number of women in employee and leadership roles by a minimum of 5% each year.
We are working towards announcing our first female ExCo and board representatives by the end of 2024. To achieve this, we'll be embedding five key pillars across the business: to establish greater development support, to develop our leaders, to improve the behavioral environment, to improve our physical environment, and lastly, to optimize recruitment processes. Our sites and offices are working to finalize their action plans and commitments to help embed our diversity and inclusion priorities for endorsement by our executive committee. Moving to a quick update on our supply chain. MMG sources goods and services through a global supply chain. In 2022, we managed over 4,800 active suppliers, of which 88% were local providers, and renegotiated 906 supplier contracts with a total value of $1.7 billion.
MMG also established business relationships with 560 new suppliers. Our total in spend in 2002 was over $2.45 billion. We recognize that modern slavery is a global issue, and risks are in every country, not just developing countries, and we are taking active steps to identify and address modern slavery risks in our supply chain. They include setting clear expectations for our suppliers, as well as their subsidiaries and subcontractors, and requiring them to align with our supplier code of conduct to respect human rights, not engaging or tolerate the use of forced, bonded, or compulsory labor, slavery or labor trafficking, and to prevent child labor risks.
By conducting modern slavery risk assessments in 2022, all of our tier 1 suppliers were assessed to identify suppliers, categories, and countries that are potentially at a higher risk of modern slavery practices. Throughout 2023, we'll continue to build on the risk assessment, we'll target our due diligence activities to include supplier practices. By increasing the capacity of our teams to understand, identify, and manage modern slavery risks, in 2022, our supply chain teams participated in online awareness-raising sessions and contributed to the modern slavery risk assessment. Now to our contributions. This slide outlines our local human initiatives. In 2022, our total contribution to communities totaled $3.5 billion. Our focus is to drive social development by supporting our host communities and providing individual economic livelihoods through improved access to infrastructure, healthcare, education, and employment opportunities.
Our spending in the countries where we are based focuses on social investment, development, and tax royalty payments. We seek to positively contribute to the regions in which we operate. This means aligning our efforts with measures that have the most impact on quality of life, as outlined by the UN Sustainable Development Goals. Through our ongoing commitment to progress, ability to anticipate emerging trends, we can make a lasting and sustainable change to our community. I'd like to now hand over to Jon Cosby, our Head of Climate and Closure Planning, to provide an update on our climate change strategy.
Thank you, Troy. In 2021, MMG launched our first climate change strategy with a plan to target net zero emissions by 2050, to help limit human-induced temperature increases in alignment with the Paris Agreement, to protect communities and natural habitats from global warming impacts, to mobilize financing for carbon reduction initiatives and technologies, and work together to drive action in partnership with governments, business, and civil society. During 2022, Las Bambas saw a decrease in overall operational emissions, mainly due to the social conflicts that kept production below targets. As Kinsevere advanced with its expansion project, MMG's total emissions grew slightly. Rosebery and Dugald River both remained stable in 2022, with a slight lift in Dugald River's emissions caused by deeper mining and increased diesel consumption through material movements.
We also completed a successful trial at Rosebery of a hybrid diesel electric underground loader, allowing the site to confirm the operational performance of the equipment to help influence decisions on future loader purchases. An internal carbon price has also been implemented for use in our annual mine and business planning processes. This will help us to assess potential decarbonization options at each mine and make better-informed business decisions. For the next slide on trend towards zero emissions. The need to make meaningful actions on climate change is a pressing priority for governments, individuals, and organizations. Due to the increased frequency and intensity of extreme global weather events, MMG is improving our understanding of local and worldwide climate and energy transition-related risks, and building business resilience to respond to a changing climate...
Demand for critical minerals and other base metals necessary for the decarbonization of the economy has increased and is expected to continue growing in coming years. MMG plays a key role in providing these metals to our customers to drive the development of green technology that will replace fossil fuels. As part of our commitment to achieve net zero, we have set an interim 2030 target of reducing scope one and two emissions from our operated assets by 40% from a 2020 baseline. This interim target aligns with science-based methodologies to help reduce global warming to 1.5 degrees Celsius, in line with the ambitions set out in the Paris Agreement.
We are also working to drive reductions in our value chain emissions, or scope three emissions, through initial measurement and disclosure by the end of this year, followed by target setting and working with our supply chain partners on their emission reduction opportunities. In addition to a series of company-wide investment projects that are assisting us to build local capability where we live and work, we're working with our host, governments, and communities to achieve these goals. The next slide, Decarbonization Pathway. Our decarbonization targets are driving us to investigate multiple renewable energy options at our assets, aiming to have 75% renewable supply by 2026, which we are confident of delivering on. We are pursuing decarbonization efforts by optimizing energy use and migrating to renewable energy sources.
Our focus for the remainder of the year will be to continue our participation in the Electric Mine Consortium, with both Rosebery and Dugald River personnel involved in decarbonization research and knowledge sharing with peer companies. This will assist us to accelerate our decarbonization actions, particularly on lower emission vehicles and mining equipment. We are also partnering with the International Copper Association Australia with their Zero Emission Mining project, which is another initiative to collaborate with peers on accelerating decarbonization. One major project worth mentioning is the Dugald River Solar Farm. The Dugald River Solar Farm was completed in February this year, with commercial operations achieved on the 21st of April. This project will reduce the Dugald River's carbon footprint and provide immediate energy cost savings. Approximately one-third of gas-fired power used in Dugald River operations has now been replaced with solar.
By incorporating renewable energy, the site is focused on achieving both environmental and economic benefits. The transition contributes to our carbon reduction initiatives, as well as offering greater energy supply diversity. Dugald River is a 24/7 operation in a remote location, often under extreme weather conditions, and having multiple power sources, safeguards our business, so we can run without the risk of interruption. I will now hand over to Steve Newman, our Head of Tailings and Water, who will provide an overview on our approach to water and tailings management.
Thank you, Jon. I'm Steven Newman, the Head of Tailings and Water. I'll now provide you an overview of our approach to the management of water and tailings. Turning to water first. In supporting the ICMM Position Statement on Water Stewardship, we contribute to the initiatives promoting better water use, effective catchment management, and improved security and sanitation for surrounding communities. We are committed to stronger and transparent water governance at our operations and collaborate with our communities to achieve responsible and sustainable water use, with water management strategy tailored to each site. In doing that, we develop water balances. Our water balance models use site-specific water inputs, storage, and discharge to inform our management of water-related risks. We are in the process of aligning our life of asset plans with structured investment decisions regarding infrastructure, proceeding demands, and community requirements. Moving to tailings.
Our approach to managing tailings has been developed through the support and contributions of both internal and external experts, and is aligned to the requirements of the Australian National Committee on Large Dams, known as ANCOLD, the Canadian Dam Association, known as the CDA, and the Mining Association of Canada, MAC, M-A-C, as well as the more recent Global Industry Standard on Tailings Management, also known as the GISTM. Our approach in tailings, we not only are consistent with those industry guidelines, we are also meet or exceed the regulatory requirements in each of our operating jurisdictions. We have also developed internally and applying a tailings management standard that is aligned to the ICMM GISTM or Global Standard on Tailings. This incorporates a robust stepped risk management process, the three lines of defense model, and includes independent expert reviews and audits.
Across all our operations, we have established accountable executives, independent tailings review boards, responsible tailings facility engineers, as is stated and we align with the ICMM global standard. In 2022, MMG generated in total 1.1 million tons of potentially acid-forming waste rock, 122.77 million tons of non-acid-forming waste rock, and 47 million tons of tailings, presenting a reduction of just over 8% of mineral waste generated across MMG compared with previous years. We are working towards full conformance with the ICMM global standard, and will publicly disclose our level of conformance in quarter three of this year, and beyond that, working to achieve conformance across all of our facilities. I'll now hand over to Troy for the concluding remarks.
Thanks, Steve, and thank you, everybody. Thank you, everybody, for your time today. Before I open up the questions, just a few highlights I want to focus on from today. First, safety. It's always been our first value and our highest operational priority. We continue to work to create safer workplaces. As outlined earlier in this presentation, by maintaining a focus on our critical controls in order to eliminate the potential harm to our people. We also continue to take measurable steps at all levels of the organization to make MMG a more diverse and inclusive organization. Growing our assets while maintaining an unwavering commitment to sustainable development drives our business. On Las Bambas, I want to be really clear that we do not accept the current status regarding relationships, compensation, and commitments as good enough.
Las Bambas has brought the greatest single development opportunity to the region in Peru that it's ever experienced in its history. Our focus is to build better partnerships with those communities based on mutual respect and success. Finally, we want to take meaningful action to reduce emissions in our operations and value chain, as well as ensuring and contributing to climate resilience in our operations and our communities. Thanks. I'll now hand back to Andrea.
Thank you, Troy. We will now move to the questions portion of the presentation. I'll now hand it over to the moderator.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Once again, that is star one to register for a question. We'll now pause a moment to allow for any questions to come through. Thank you. There are no questions at this time. I'll now hand back to Ms. Atell for closing remarks.
Thank you. This concludes our presentation today. Thank you for joining us. For more information on MMG's sustainability performance, please visit our website and social media channels. For any further questions, please contact our corporate affairs and investor relations team. Thank you.