Sustainability
Report 2022

A global lithium chemicals company
with an industry leading growth profile

Contents
Letter from the Managing Director and CEO

4

About this Report5

About Allkem

6

Our Purpose

9

Our Impact

9

FY22 Value Creation

10

Our Operations

12

Our Growth Projects

17

Risk and Governance20

Climate Change Risk

21

Human Rights Risk

22

FY22 Focus Areas

23

FY22 Performance

28

Climate Change and Decarbonisation30

Our People

35

Health, Safety and Wellbeing

35

Diversity and Inclusion

38

Future Ready Workforce

41

Our Environment

44

Water Use

46

Waste and Tailings Management

49

Land Use and Biodiversity Management

51

Communities and Shared Value

58

Auditor Statement60

Appendix

62

Allkem Sustainability Report 2022

3

Letter from the Managing
Director and CEO
Thank you for your interest in our sixth Sustainability Report which is our first report since
the successful merger of Orocobre Limited and Galaxy Resources and the renaming of thecompany as Allkem Limited.
During the past year we have brought together two
successful lithium producers at a time when demand
for lithium as well as market prices for lithium havereached record high levels. This unprecedented demandis being driven by a renewed focus on achieving global
decarbonisation to reach net zero greenhouse gas
emissions by 2050.
Our strong balance sheet and continuing significant cash
generation from our operations will fund developmentof our global growth pipeline. The strength, qualityand diversity of our assets are matched by the skills of
our integrated teams. We are drawing on the technicalknowledge of our teams at the Mt Cattlin hard rock
operation in Western Australia to assist with the design
and planning of our James Bay hard rock lithium
development project in Quebec. The experience we havegained and the lessons we have learned from developing
our successful Olaroz lithium brine operation in Argentina,
and our long-standing presence in the country throughBorax Argentina are valuable in the development of our Sal
de Vida lithium brine project. We have also worked closely
during the year with our joint venture partners Toyota
Tsusho Corporation (“TTC”) commissioning the Naraha
Lithium Hydroxide Plant in Japan.
During the year we welcomed our new Chief Sustainability
and External Affairs Officer, Karen Vizental to lead our
integrated approach to generating long term value for our
stakeholders. As in past years, we engaged with each of our
stakeholder groups regularly to better understand what
is most important to them. The message back was that
health and safety at work, business growth, climate change
response and environmental management remain the
primary areas of importance.
A strong focus on safety as our top priority is sharedacross all our teams and this has facilitated the successful
integration of our safety management approach acrossAllkem during the year. This is reflected in an improved
TRIFR of 2.6 across the Group and more importantly, ameasured increase in the reporting of safety observations.
Implementing leading indicators such as this assists
us to proactively address potential hazards and make
improvements before anyone is injured.
We continue to build and maintain respectful partnerships
with local and indigenous communities in the areas where
we operate.

4

Allkem Sustainability Report 2022

Our shared value team in Argentina is working to develop
meaningful measures of outcomes associated with ourlong running community capacity building programs. We
have also maintained our regular program of engagementwith our Mt Cattlin Community Consultation Group to
increase collaboration and identify opportunities togenerate shared value with the Ravensthorpe community.
Progress has been made during the year with theEnvironmental and Social Impact Assessment process
for our James Bay project as we continue to build trusted
relationships with the Cree Nation Government, thecommunity of Eastmain and other project stakeholders.
At Allkem, we are proud of the role we play in enabling
climate change mitigation through contributing to theclean energy storage and electric vehicle value chains.
We are also committed to reduce our own impact. Our
James Bay and Sal de Vida projects will both incorporate
renewable energy generation, and our operations andprojects are all located in areas of lower water stress. We
are continuing to investigate the most efficient methodsof reducing our own operational emissions as we develop
our net zero action plan. Completion and publication ofthis plan, considering the whole Allkem group is a key
performance objective for FY23.
We will continue to report transparently on how we sharethe value we generate with our stakeholders as we workto achieve our goals. We maintain our commitment to
the United Nations Global Compact and have continued
to have key performance metrics assured by a third party
against the Standards of the Global Reporting Initiative.
I would like to thank our employees, management teamand Board colleagues for their hard work and commitment
contributing to a successful first year as Allkem Limited.
To the communities with whom we operate every day,our joint venture partners and the National and Provincial
governments of Argentina, Canada and Australia who
continue to support our business, I would also like to extend
our gratitude. We believe that together, we go further.

Martín Perez de Solay
Managing Director and CEO

About this Report

Our 2022 financial year (FY22) Sustainability Report illustrates the sustainability
performance of Allkem Limited. This is our first Sustainability Report as Allkem Limited
which is the new name for Orocobre Limited following the completion of the merger with
Galaxy Resources Limited in August 2021.
The scope of our sustainability reporting and performancedata metrics includes key performance data from the
Mt Cattlin hard rock mining operation in Western
Australia, the Olaroz brine-based lithium facility in Jujuy
Province, Argentina operated by Sales de Jujuy S.A.
(‘Olaroz’ or SDJ), Borax Argentina S.A. (Borax Argentina
or BRX), a boron chemicals and mineral company in Salta
Province, Argentina (currently in the process of being sold)and our growth projects at Sal de Vida (SDV) in Catamarca
Province, Argentina and the James Bay project in Quebec,
Canada. The data provided in this document, for all
subsidiary companies, covers the period between
1 July 2021 and 30 June 2022 unless otherwise stated.
The scope of performance data reporting does not include
the Naraha Lithium Hydroxide Project which is managed byour joint venture partner Toyota Tsusho Corporation (TTC).
This report has been prepared in accordance with the GRI
Standards (core) and documents the Company’s progressagainst the 10 Principles of the UN Global Compact
and contribution to the UN Sustainable Development
Goals (SDG).
External limited assurance was conducted over thefollowing key GRI indicators referenced in this report andassociated performance data. This included analysis of theapplication of GRI standards and the principles of content
and quality.

The independent limited assurance report is included inthis report here.
Further supporting information regarding performance in
FY22 is available on our website as follows:• Performance Data: additional detailed sustainability
indicators related to the performance of each focus area
• Case Studies: additional information relating to our local
community initiatives and programs where we createshared value• Management Approach Disclosures: Summary
documents outlining strategic importance andmanagement approach in place to address main topics
of relevance to our stakeholders• GRI Standards/UNGC/SASB/SDG Contents Index:
outline of material topics and contents defined by the
GRI Standard, SASB standards, the Principles of the
UN Global Compact and UN Sustainable Development
Goals, which enables the reader to navigate the reportand promptly locate information in the Sustainability
Report or other complementary documents.
We welcome any comment or suggestion you may
wish to share on this report through our email address:
sustainability@allkem.co

GRI Standards—External Assurance Scope
GRI Standard

Topic specific disclosure included in FY22 assurance scope

Location

200—Economic

202-1
202-2
203-1

Ratios of standard entry level wage compared to local minimum wage
% senior management hired from the local community
Infrastructure investments and services supported

203-2

Significant indirect economic impacts

204-1
302-1
302-3
302-4
303-3
303-4
305-1
305-2
305-4
306-3
306-4
306-5
403-9
403-10404-1
404-3% spending on local suppliers
Energy consumption within the organization
Energy intensity
Reduction of energy consumption
Water withdrawal
Water discharge
Direct (Scope 1) GHG emissions
Energy indirect (Scope 2) GHG emissions
GHG emissions intensity
Waste generated
Waste diverted from disposal
Waste directed to disposal
Work-related injuries
Work related ill health
Average hours of training per year per employee% employees receiving regular performance and career development reviews

Performance data
Performance data
Performance data
Performance data andpages 50 and 52 of Report
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data
Performance data

300—Environment

400—Social

Allkem Sustainability Report 2022

5About Allkem

Allkem is a highly successful speciality lithium chemicals company, formed from the mergerof Orocobre Limited (“Orocobre”) and Galaxy Resources Limited (“Galaxy”) in August 2021.
We have a diverse portfolio of high-quality lithium assets, supplying critical minerals andchemicals that contribute to the decarbonisation of the energy and transport sectors.
Our assets are strategically located to service the growing demand from global battery and electric vehicle (EV) value chains.

James Bay (100%)Stage

Permitting and Engineering

Type

Hard rock

Product

Spodumene concentrate

Production Capacity

321 ktpa @ 5.6% Li20

Resources1

40.3 Mt @ 1.4% Li20

Olaroz (66.5%)
Stage

Operating/development

Type

Brine

Product

Carbonate

Production Capacity

42.5 ktpa

Resources1

16.2 MT LCE (100%)

Borax (100%)
Stage

OperatingType

Borates minerals and refined chemical products

Subsequent to the end of the period Allkem entered into a binding andconditional Heads of Agreement to sell Borax. Subject to satisfaction of theconditions, it is currently anticipated that this sale will complete in Q4 CY22.

Sal de Vida (100%)
Stage
Type
Product
Production Capacity
Resources1

Construction
Brine
Carbonate
45 ktpa
6.85 MT LCECauchari (100%)
Stage
Type
Resources1

6

Allkem Sustainability Report 2022

Early studies
Brine
6.3 MT LCEA global lithium chemicals company
with an industry leading growth profile

Nahara (75%)

Non-Operated Joint Venture

Stage

Commissioning

Type

LiOH conversion facility

Product

Hydroxide

Production Capacity

10 ktpa LiOH

Mt Cattlin (100%)
Stage

OperatingType

Hard rock

Product
Resources1

Spodumene concentrate
13.3 Mt @ 1.2% Li20

Brisbane office
Perth office
Buenos Aires (Head Office)Key
Operating Asset
Development Asset
1

Refer to FY22 Annual Report for Resource and Reserve information.

OfficeAllkem Sustainability Report 2022

7

Our assets and expertise encompass both hard-rock and brine-based lithium operations.

Allkem Hard Rock Process

Allkem Brine-Based Process
Brine
Li+

Open Pit Mining

ROM Stockpile+ LimeWell field

Pre-Pond

Lime Plant

Concentrated BrineLi+

Dense Medium Separation(DMS) and sorting

Crushing and Screening

Rejects

Tailings Storage

Carobonation Plant

Precipitated Salts

Product

Product

Spodumene Concentrate
Grade of ~6% lithium oxide (Li2O)

Lithium Carbonate (Li2CO3)ExportExportCustomer Processes
and End Use

Customer and JV Processes
and End Use

Rotary Kiln (Calcination)
Acid Roasting
Purification

Precipitation
Filtration
Crystallisation

Lithium Hydroxide

Used in Battery Storage Value Chain

Allkem/JV processes

8

Evaporation Ponds+ Soda Ash

External processes

Allkem Sustainability Report 2022

Naraha Hydroxide
Conversion Process+ LimeFiltration

Crystallisation
DryingLithium Hydroxide

Used in Battery Storage
Value Chain

Lithium Carbonate

Used in Battery Storage
Value Chain

Lithium Carbonate
Used in Glass/Frit/
Flux ProductionOur Purpose
Allkem produces critical minerals to support global
decarbonisation. Our ambition is to expand production
3-fold by 2026 and maintain at least a 10% of global
lithium production over the next decade.

Our Impact
Based on figures reported by the International Energy
Agency, and other industry sourced data2, it is estimatedthat for every one tonne of Lithium Carbonate Equivalent(LCE) we produce and sell into the electric vehicle (EV)value chain, we can contribute to a reduction of around400-600 tonnes of greenhouse gas emissions. This
impact is expected to grow a further 25% as EVs are
increasingly powered by electricity grids transitioning
away from fossil fuels towards renewable energy. An
additional increase in impact will be realised with therecycling of materials from EV batteries that have reachedtheir end of life. Regulations such as those proposed by theEuropean Union3 are incentivising inclusion of recycled
lithium content in batteries. Our lithium products therefore
have the potential to continue contributing to even further
global emissions reduction beyond their first use.

Emissions along the mineral
supply chain do not negate theclear climate advantages of clean
energy technologies. Total lifecycle
greenhouse gas emissions of EVs
are around half those of internal
combustion engine cars on average,
with the potential for a further 25%
reduction with low-carbon electricity.
International Energy Agency 4

Revenueby Product

In FY22, the race to secure key critical materials to support
global decarbonisation further intensified. Both spot andcontract prices for lithium carbonate and hydroxide acrossall key geographies rallied to new records as limited new
supply fell short of demand.
Spodumene concentrate spot prices recorded an almost
tenfold increase during the financial year. Contracted
prices were also significantly adjusted upwards during
the year to reflect tightening market conditions acrossthe supply chain. Allkem revenue from sales of productduring FY22 was approximately US$770 million. Of this,
96% was generated from combined sales of lithium
carbonate and spodumene concentrate5. We estimatethat 92% of revenue was generated from selling productthat contributed to the battery storage value chain. This
includes sales of battery grade lithium carbonate, primary
grade lithium carbonate sold for direct use in battery
supply chain, or for conversion to lithium hydroxide andspodumene concentrate sold to chemical producers in thebattery supply chain.
We are monitoring the development and implementationof global frameworks (such as the EU taxonomy) tofacilitate sustainable investment. Our activities that
directly enable battery manufacturing for use in electricvehicles and energy storage are aligned with the climatechange mitigation objectives of these frameworks.
The scale of demand growth for critical minerals andthe importance of securing supply to achieve a global
transition to a net zero economy is resulting in an
increased focus on potential environmental, social andgovernance risks and opportunities. This is particularly
important when considering the need for a just transition
towards net zero that does not disadvantage people or
the environment.6 Allkem incorporates strategic planningthat takes these broader considerations into account andcontributes to more efficient approvals processes andongoing acceptance of our operations.

Lithium Carbonate 38%

Battery storage 92%

Spodumene Concentrate
58%

Glass/Frit/Flux 2%

Other 1%

Revenueby End Use

Other 6%

Borax Products 3%2	https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf p.194 BEV fuel economy 0.19 kWh/km;
BEV battery 40 kWh NMC622. Industry estimate of 0.86kg LCE/kWh.
3 https://www.europarl.europa.eu/RegData/etudes/BRIE/2021/689337/EPRS_BRI(2021)689337_EN.pdf
4 https://iea.blob.core.windows.net/assets/ffd2a83b-8c30-4e9d-980a-52b6d9a86fdc/TheRoleofCriticalMineralsinCleanEnergyTransitions.pdf p.15
5 Average grade of 5.6% lithium oxide (Li2O)
6 https://www.iea.org/reports/the-role-of-critical-minerals-in-clean-energy-transitions/sustainable-and-responsible-development-of-minerals

Allkem Sustainability Report 2022

9

FY22 Value Creation
To be a sustainable business, it is important to integrate how we mitigate risk and generate value for our organisation
with how we mitigate risk and generate broader value for others. Our business can only be sustainable if we operate
within a thriving society that benefits from a healthy environment. We develop and maintain trusted relationships withour broad group of stakeholders by understanding what matters to them and responding to their expectations. We aretransparent about our impacts and opportunities and how we generate and share value.

InputsBusiness Activities

Financial

Completion of Merger

US$261.4 million

Capital Expenditure and Explorationand Evaluation for FY22

Corporate Development
People1,300+
Employees>40%+ Local based>20%+ Female

Project Development

Knowledge

16,800+Research andDevelopment
Hours training*
Hard rock and brine
operations experience

Manufactured

Reagents

Hard Rock Operations

Brine Operations

Including Lime And Soda Ash

1,745k GJ
Fuel Use

48% Natural Gas
45% Diesel
7% Intermediate Fuel Oil

Downstream Operations
and Partnerships

Natural1,467ML

72% Olaroz
19% Mt Cattlin
Total Water Extraction 9% Borax Argentina

26.3 Mt LCE

Procurement

Resources Estimate as Lithium
Carbonate Equivalent

Solar Energy

Increases brine concentration
approximately x12

10

Allkem Sustainability Report 2022

Sales and Marketingof Products

FY22 Outputs and Outcomes

193,563 dmt

Record Annual Spodumene
Concentrate Produced

12,863 t

Record Annual Lithium
Carbonate Produced>US$60 m

Payments to Local
Suppliers and Employees

Contributing

To Emissions Avoided by
Enabling Decarbonisation

119.7 kt CO2e

US$4,536 m

626 t

US$770 m

608 t

US$605 m

Scope 1 GHG Emissions

Waste Disposed

Waste Recycled

1.17 Mt

Precipitated andHarvested Salts

411 ktTailings

Stakeholders

Market Capitalisation*

Revenue

Investors

Employees

Communities/
NGOs

Gross Profit

US$39.6 m

Government/
Regulators

Mining Royalties andExport Duties>US$1.3 m

Customers/
Suppliers

Community Contributions

Note that Resource estimates are not mineral reserves and do not have demonstrated economic viability. See p121–130 of FY22 Annual Report for detailed resource andreserve estimated (at 30 June 2022). Contained Li2O previously disclosed in Resource statements for James Bay and Mt Cattlin is converted to LCE at a ratio of 2.473.
*Training hours inclusive of Olaroz, Borax, Sal de Vida and James Bay.
Spodumene production volume is based on the full financial year ending 30 June 2022. The FY22 financial statements are based on Mt Cattlin’s results from the 10-month
period post-merger completion date i.e. 25 August 2021 to 30 June 2022.

Allkem Sustainability Report 2022

11

Our Operations
Mt Cattlin
Type

Hard rock

Resource

13.3 Mt @1.2% Li2O

Allkem Ownership

100%

Equivalent to ~0.4 Mt LCE

Status

Production
With drilling underway
to extend mine life

Contractor Hours

419,755

Location

2km from Ravensthorpe, WAon the lands of the Wagyl Kaipand Southern Noongar people

Local Community Contribution>US$6.5 m

Direct Employees

95

57% From local communities
22% Female

Taxes and Royalties Paid

~US$13.8 m

Through salaries, local supply
contracts and community programs

FY22 Production

193,563 dmt8
Of spodumene concentrate(average grade of 5.6% Li2O)

Scope 1 and 2 Total~39,000 tCO2e
Intensity 0.2 tCO2e/dmt of
spodumene concentrate(1.6 tCO2e/ t LCE9)

Spodumene concentrateis shipped to customers inAsia who convert to lithiumhydroxide for use in battery
storage value chain

Tailings Generated

330,662 t

Revenue~US$452 m
25 August to 30 June 2022

Water Use Intensity

1.37m3/dmt
Spodumene concentrate(10.9m3 /t LCE)

7 Refer to Mineral Resources and Ore Reserves on p121-130 of FY22 Annual Report8	Dry Metric Tonne—This production volume is based on the full financial year ending 30 June 2022. The FY22 financial statements are based on Mt Cattlin’s results from the
10-month period post-merger completion date i.e. 25 August 2021 to 30 June 2022.
9 Lithium carbonate equivalent—for the purpose of these metrics, a conversion factor of 8 has been used for spodumene concentrate to LCE
10 Total Recordable Injury Frequency Rate per 1 million hours worked (inclusive of employees and contractors)

12

Allkem Sustainability Report 2022

Rehabilitation Plan

1.47 haReplanted

 atalities or Class 1 Process
F
Safety Events

0

TRIFR10

12

Allkem Sustainability Report 2022

13

OlarozType

Resource

Brine~16.2 Mt LCE11

Allkem Ownership

66.5%

Ownership Structure

Allkem(Australia)

Toyota Tsusho (TTC)(Japan)6.2%1

72.68%(SDJ S.A. 66.5%)

27.32%(SDJ S.A. 25%)

JEMSE
(Jujuy, Argentina)

Sales de Jujuy Pte Ltd(Singapore)
91.5% (Common Share)

8.5% (Class B Share)

Project Company—Sales de Jujuy S.A. (SDJ)(Jujuy, Argentina)

StatusStage 1 Production andStage 2 Expansion
Including 100% owned CauchariResource ~6.3 mt LCE

Debt

Guarantee

Lender(Mizuho)

Guarantor(JOGMEC)

Location

Jujuy province of Argentina
under a Participation
Agreement with the
Pueblos Originarios of the
Olaroz Chico Community

11 Lithium carbonate equivalent. Refer to Mineral Resources and Ore Reserves on p121-130 of FY22 Annual Report
12 Total Recordable Injury Frequency Rate per 1 million hours worked (inclusive of employees and contractors)

14

Allkem Sustainability Report 2022

Direct Employees

628

40% Based in local communities
75% From Jujuy Province, Argentina
20% Female

Contractor Hours

Local Community Contribution

2,047,000

US$44 mFor FY22 including
expansion activities

Through salaries, local supply
contracts and community programs

FY22 Production

Targeted Production Capacity

12,863 t

42.5 ktpa

Lithium carbonate
47% battery grade

Lithium carbonate (Stage 1 and 2)

Scope 1 and 2 Total

Operational Water Intensity

58Kt CO2e49.9 m3/t

Operations and expansion activities,
Operational intensity 3.37 tCO2e/tlithium carbonate

Lithium carbonate

Taxes and Royalties Paid

~US$22.7 m

Revenue~US$292.8 m

 atalities or Class 1 Process
F
Safety Events

0

TRIFR12

2.2

Allkem Sustainability Report 2022

15

BoraxAllkem Ownership

Status100%*

Location

Production

Direct Employees

Salta provinceof Argentina

Local Community Contribution

287~US$9.6 m

65% From local communities
90% From Salta Province, Argentina
12% Female

Through salaries, local supply
contracts and community programs

FY22 Production

61,448 t

Including borax
chemicals, boric acidand boron minerals

Revenue~US$25.1 m

Taxes and Royalties Paid

~US$3.7 m

 atalities or Class 1
F
Process Safety Events

0

1.4*Subsequent to the end of the reporting period Allkem entered into a binding and conditional Heads of Agreement to sell Borax. It is currently anticipatedthat this sale will be completed in Q4 CY22
13 Total Recordable Injury Frequency Rate per 1 million hours worked (inclusive of employees & contractors)

16

Allkem Sustainability Report 2022

TRIFR13Our Growth Projects
Sal de Vida
Type

Brine

StatusResource~6.85 Mt LCE14

Targeted Production

Construction

45 ktpa

Stage 1 (15 ktpa) commenced construction andtargets first production in H2 CY23 with brine
evaporation occurring during plant construction,
allowing evaporated brine to feed the plant once
commissioned. Development of Stage 2 (30 ktpa)
will occur sequentially.

battery grade lithium carbonate(Stages 1 and 2)

Direct Employees

211

Contractor Hours

653,000

18% From local communities

Allkem Ownership

100%

Location

Catamarca Province ofArgentina, approximately
200 km from Olaroz

Capital Expenditure~US$63.7 m
At 30 June 2022, excluding VAT
and working capital

including Villa de Antofagasta, El Peñón, Antofalla,
Los Nacimientos and the town of Ciénaga Redonda

81% From Catamarca Province, Argentina
25% Female atalities or Class 1 Process
F
Safety Events

0

TRIFR150

Renewable Power

30%

Target power from renewable
photovoltaic for Stage 1

14	Refer to Mineral Resources and Ore Reserveson p121-130 of FY22 Annual Report15	Total Recordable Injury Frequency Rateper 1 million hours worked (inclusive of
employees and contractors)

Allkem Sustainability Report 2022

17

James Bay

Type

Resource

Hard rock

Allkem Ownership40.3 Mt @ 1.4% Li2O16100%

Equivalent to ~1.4 Mt LCE

StatusCapital Expenditure

Permitting
and Detailed
Engineering
Location

20

75% From Quebec Province
30% Female~US$2.8 m

321 ktpa

At 30 June 2022, excluding VAT
and working capital

Spodumene concentrate@ 5.6% Li2O

The project is located in category III lands as classified by theJames Bay and Northern Quebec Agreement (JBNQA). These areas
are subject to the laws and regulations of Quebec regarding theuse of public land. Allkem continues to work closely with the CreeNation Government and in particular, the communities of Eastmain,
Waskaganish and Waswanipi through the Environmental and Social
Impact assessment processes.

The James Bay project islocated 130 km east of theCree Nation of Eastmain, afirst nations community of
approximately 833 residents

Direct Employees

Production Capacity

 atalities or Class 1
F
Process Safety Events

0

TRIFR170

Renewable Power

Renewable
Electricity

Utilised from Hydro-Quebec

Assessment Processes
Government of QuebecCree Nation Government

Environmental and Social Impact Review Committee(COMEX)

Joint Assessment Committee (JAC)

Approval by Government of Quebec

Approval under the Canadian
Environmental Assessment Act, 2012

16 Refer to Mineral Resources and Ore Reserves on p121-130 of FY22 Annual Report
17 Total Recordable Injury Frequency Rate per 1 million hours worked (inclusive of employees and contractors)

18

Impact Assessment
Agency of Canada

Allkem Sustainability Report 2022

Naraha

Non-Operated Joint Venture

The Naraha Lithium Hydroxide Plant (Naraha) is the first of its kind to be built in Japan andis designed to convert technical grade lithium carbonate feedstock from Olaroz stage 2
into purified battery grade lithium hydroxide. There is strong demand for this product in
the Japanese domestic market to produce high end batteries. The scope of sustainability
performance data reporting does not include this development project which is managed
by our joint venture partner Toyota Tsusho Corporation (TTC).

Type

StatusLithium Hydroxide
Conversion Facility

Construction
Completed
Construction has been completed and commissioning activities commenced.
First production is expected in H2 CY22 with minor delays being experienced due
to travel and visa restrictions for commissioning personnel.

Capital Expenditure

Production Capacity~US$67 million

10 ktpa

At 30 June 2022, excluding VAT and working capital

Purified battery grade lithium hydroxide

Ownership Structure
Allkem(Australia)

Toyota Tsusho (TTC)(Japan)Economic interest 75%

Economic interest 25%

Toyotsu Lithium Corporation (TLC)

Awarded an engineering, procurement, and construction(EPC) contract to build the Naraha Lithium Hydroxide Plant

Veolia Water
Technologies

Allkem Sustainability Report 2022

19

Risk and Governance

20

Allkem Sustainability Report 2022

Risk and GovernanceRisk and GovernanceAllkem promotes a culture that values trust, cooperation and mutual respect. Our Board
is a strong advocate of good corporate governance and believes that a high standard ofcorporate governance is essential for sustainable long-term performance and value creation.
Our Board is committed to fulfilling its corporate
governance obligations and responsibilities in the bestinterests of the Company and its stakeholders. The
ASX Listing Rules require the Company to prepare a
Corporate Governance Statement (Statement) which
discloses the extent to which the Company has followed
the recommendations contained in the 4th edition of
the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations (Principles
and Recommendations). Our FY22 Corporate GovernanceStatement is available on the Company website.
Reflecting the importance of sustainability to thecompany, Allkem’s Chief Sustainability and External
Affairs Officer reports directly to the CEO and also
engages regularly with Allkem’s Board Sustainability
Committee. This Committee assists the Board in theeffective discharge of its responsibilities in the areas ofsustainability and in particular: safety, health, environment,
community, climate change and human rights. The Charterof Allkem’s Sustainability Committee, and our other Board
Committees are available on the Company website.
FY22 was a period of consolidation for the organisation
bringing together the Risk Frameworks of both Galaxy
Resources and Orocobre. The Audit and Risk Management
Committee, on behalf of the Board, endorsed the Allkem
Risk Policy and the Allkem Risk Framework which enabled
the initial development of a single consolidated Risk
Register. Allkem has appointed a Group Risk Manager tooversee this process.

Risks, including threats and opportunities identified at thesite level are incorporated in operational risk registers.
Material risks, including those associated with safety,
climate change and human rights are incorporated within
Allkem’s Risk Framework. Allkem’s Board is responsible
for overseeing risk and has assigned accountabilities andresponsibilities for risk management to the Audit and Risk
Management Committee, the Managing Director andexecutive management, with Allkem’s Chief of Staff acting
as the custodian of the Risk Management process within
the organisation. The Group risk framework is reviewed
at least annually by the Board Audit and Risk Committee.
Key risks captured in this process are summarised anddisclosed in Allkem’s Annual Report.

Climate Change Risk
Allkem has defined what short, medium and long-termmeans to the business from a climate change perspective.
Allkem has completed a climate change risk assessment,
identifying both physical and transitional climate-relatedrisks and opportunities along our value chain.
This assessment incorporated18 two detailed climate
scenarios out to 2040 to guide the identification ofrisks and opportunities.

Board of Directors

Key Management
Personnel

Sustainability
Committee

People andRemuneration
Committee

Nomination
and GovernanceCommittee

Audit and Risk
Management
Committee

Independent
Assurance
External Audit

Executive Leadership TeamInternal Audit

18 See p.15 of Allkem FY22 Annual Report.

Allkem Sustainability Report 202221

A summary of each of the scenarios used in the assessment is included below. Note that Scenario 1 incorporates
a 1.5˚C pathway:

Scenario 1

Scenario 2

Ambitious, Coordinated Global Action

Patchy, Insufficient Progress

In this scenario, the goals of the Paris Agreement areachieved with signatories of the Paris Agreement
significantly ramping up their ambition from 2020
onwards. This would result in global emissions peaking
shortly after 2020 and trending down thereafter,
achieving a 30% (for a below 2 ˚C pathway) to 50% (fora 1.5 ˚C pathway) reduction by 2030 (on current levels).

This scenario is set in a world where governments
deliver on policies presently in place at the time theassessment was carried out, but nothing else. This
results in about 3.2°C warming above pre-industrial
levels, missing the goals of the Paris Agreement.

The shift in the global economy is supported byinternational, national and sub-national policy andmarket frameworks, global emissions trading, andaction by businesses and consumers.
The growth in residential and commercial renewableenergy deployment and the rapid move to EVs is
accompanied by a significantly increased demand forbattery storage systems.
Consequences of physical risks are contained, eventhough already locked-in impacts are still felt.

We have completed a preliminary assessment of physicaland transitional drivers and potential impacts on ourbusiness across products and services, supply chain,communities, adaptation and mitigation activities,
investment in R&D, and operations. While initial climatechange risk assessments were carried out as stand-alone
assessments, or as part of project approvals activities,
we have now incorporated climate change risk within ourannual risk assessment process. Climate related risks
and opportunities identified at the site level, or throughspecific workshops addressing climate change anddecarbonisation initiatives are incorporated in operationalrisk registers. The Group risk framework, taking site level
and corporate risk registers into consideration, is reviewed
at least annually by the Board Audit and Risk Committee.

Continued reduction in cost of new energy
technologies assists the clean energy transition;
however, the momentum is not enough to offset
the effects of an expanding global economy andgrowing population.
Limited policy intervention results in an uncoordinatedtransition, both at the national and international levels.
Physical aspects of climate change are increasingly
felt across the world. Uncertainty on when climate
thresholds will be crossed remains.

Human Rights Risk
Human rights risks within our operations and supply
chain have been assessed through a stand-alone
human rights risk assessment. Supply chain risk factors
are reassessed annually as part of our Modern Slavery
reporting requirements under the Australian Government
Modern Slavery Act. Our Annual Modern Slavery Statement
is reviewed by the Allkem Board and lodged with theAustralian Government Register. It is also available on
our website.
During the year, Human Rights awareness training
was carried out across the company with over
350 employees participating in 22 sessions across
8 locations in 3 countries.

The Group risk framework, taking site level and corporate risk
registers into consideration, is reviewed at least annually by
the Board Audit and Risk Committee.

22

Allkem Sustainability Report 2022

FY22 Focus Areas

Allkem Sustainability Report 2022

23

Overview

We regularly engage with our stakeholders to better understand what topics are importantto them and why. We make sure that we understand what the potential is for our businessactivities to impact these topics and if these represent risks that need to be mitigated oropportunities that can be incorporated in our business strategy.

Employees

Communities
andGovernments

Shareholders

24

Allkem Sustainability Report 2022

Customers

SuppliersWe foster connections
to power a sustainable
future.
We believe the connections wecreate with all stakeholders including
employees, customers, suppliers,
communities and shareholders enable
us to deliver a sustainable future for all.

Employees
Together we are fostering personal growth andprofessional impact through an inclusive culturethat celebrates diversity.
Allkem has ~1300 employees based acrossAustralia, Argentina, Canada and Japan. During theyear we focused on standardising our approachto safety and wellbeing across the company andwe continue to develop an inclusive culture,celebrating diversity in all areas where we operate.

Communities and Government

Customers

Together we seek meaningful long-term
relationships that respect local cultures andcreate lasting benefits.

Together we are responsibly delivering a
reliable source of high-quality products withthe scale, flexibility and global reach requiredby our customers.

We are privileged to have respectful partnerships
with local and indigenous communities inRavensthorpe, Western Australia, the provincesof Catamarca, Jujuy and Salta in Argentina andQuebec, Canada. We understand the importanceof listening to all voices that make up ourcommunities and being responsive to communityand government concerns. We monitor andmanage environmental impacts and opportunities
and make this information available. We maintainregular communication with government
representatives and identify common goals forshared value creation.

During the year we delivered spodumene
concentrate and lithium carbonate to ourcustomers. We engage with our customers toincrease transparency on environmental, social andgovernance performance in line with the evolving
focus on ESG across the value chain.

Suppliers

Shareholders

Together with our suppliers we are improving
efficiency, identifying innovative solutions andbuilding capacity in our local community suppliers
to create shared value.

Together we are undertaking sustainable
development of our world-class growth pipeline
to maximise shareholder value.

Allkem Sustainability Report 2022

25

We review our most material topics based on stakeholder
engagement throughout the year. We validate these topics
with the Executive team and the Board at the final stageof our annual materiality assessment. The outcomes ofthe materiality assessment for FY22 are summarised in
the following matrix. What is important to one group of
stakeholders may be different to what is important toothers. This matrix captures the topics that are recognised
as most important overall. Key differences this year include
a greater emphasis on the importance of waste and tailings
management. This is due to our assets expanding to include
hard rock spodumene mining as well as brine-based
lithium operations post-merger. The completion of themerger has also placed increased focus on staff training
and professional development as our business expands.
Health and safety at work, business growth, climate change
response and environmental management remain primaryareas of importance for Allkem and our stakeholders.

Health and safety, businessgrowth, climate change
response and environmental
management remain primaryareas of importance forAllkem and our stakeholders.

Materiality Matrix

Importance to Stakeholders• Local employee hiring in the regions
where we operate

Strategic••••

Human rights
Community and indigenous partnerships
Water and basin management
Waste and tailings management• Diversity, inclusion and equal
opportunities• Training and professional development• Risk and Crisis management (including
Covid 19 response)• Development and hiring of local suppliers.

Allkem Sustainability Report 2022

Important• Health and safety at work
• Business Continuity, Growth andprofitability• Climate change response• Biodiversity and environmental
management• Assurance of quality, product safety andresponsibility• Governance, Ethics , Transparency andAnticorruption• Research, innovation and development• Contribution to public policy

Importance to Allkem

26

RelevantOur response to each of these material topics can be found in our disclosures as indicated below.
Topic

Description

Changefrom FY21 Response

Business
Our stakeholders, particularly our investors require our business to becontinuity, growth, profitable now, and in the long term. The success of our merger and ability
and profitability
to maintain successful expansion of our operations and projects is critical.

Annual Report
Sustainability Report—About Allkem—
Growth Projects

Health and safety
at work

How we put in place effective standards and systems to maintain a culturethat keeps our workforce safe.

Sustainability Report—Our People—
Health, Safety and Wellbeing
Health and Safety Policy
Health and Safety Performance Data

Climate change
response

How we are responding to the recommendations of the Taskforce on
Climate Related Financial Disclosures (TCFD) and preparing our businessfor the physical and transitional risks (and opportunities) associated withclimate change.

Annual Report—TCFD Response
Climate Change Statement
Environment Performance Data

Human rights

Our stakeholders are interested in how we respect and promote humanrights in our operations and supply chains. As an ASX listed company,
the Australian Government requires Allkem to submit an annual Modern
Slavery Statement outlining how we identify and address risk factors formodern slavery.

Annual Modern Slavery Statement
Sustainability Report—Risk andGovernance—Human Rights Risk
Human Rights Policy

Biodiversity andenvironmental
management

Our stakeholders are interested in how we identify, evaluate, and manage
the potential environmental impacts of our operations. This is particularly
important to securing approvals and ongoing acceptance of ouroperations in each of the regions where we operate.

Sustainability Report—Our Environment—
Land Use and Biodiversity Management
Environmental Policy
Environment Performance Data

Assurance ofquality, productsafety andresponsibility

Our customers have specific requirements to which our products must
adhere. This includes safe packaging, handling, and use of our products.

Value Chain Performance Data
Sustainability Report—Communities andShared Value

Community
and indigenous
partnerships

Maintaining strong trusted partnerships with local communities where
our operations and projects are located is crucial.

Sustainability Report—Communities andShared Value
Community and Social Performance Policy
Landholder Engagement Policy

Water and basin
management

Water management is a key area of interest for the Lithium industry, and
it is important to clarify our risk exposure, while promoting water-use
efficiency and protecting water-related ecosystems.

Sustainability Report—Our Environment—
Water Use
Environment Performance Data

Waste and tailings As we increase our exposure to hard rock mining operations, ourmanagement
management of tailings is becoming more material to our stakeholders.

Sustainability Report—Our Environment—
Waste and Tailings Management
Environment Performance Data

Diversity is increasingly seen as an asset to listed entities and a
Diversity, inclusion,
contributor to better overall performance, particularly in a competitiveand equallabour market. Our stakeholders are interested in how we set targets andopportunities
implement actions towards achieving diversity.

Sustainability Report—Our People—
Diversity and Inclusion

Training andprofessional
development

We must attract and maintain a growing workforce of skilled employees
to build a strong and successful business in the long term.

Sustainability Report—Our People—
Future Ready Workforce
People Performance Data

Research,
innovation anddevelopment

Investors are increasingly interested in how we will implement innovativetechnologies (including direct lithium extraction (DLE)) to sustainably
grow our lithium production capacity.

Sustainability Report—Climate Change
and Decarbonisation

Governance,
ethics,transparency, andanti-corruption

Our stakeholders require us to have effective governance principles inplace and to act ethically and with transparency.

Corporate Governance Statement
Sustainability Report—Risk and Governance
Governance Performance Data

Risk and crisis
management(including
COVID-19
response)

Our stakeholders are interested in how we effectively identify andmanage risks in relation to the sustainability of our business, including,
how we are responding to the remaining challenges associated with
COVID-19 across our workforce, in our communities, with our suppliersand contractors, and in the market.

Annual Report
Sustainability Report—Risk and Governance
Sustainability Report—Our People—
Health, Safety and Wellbeing

Development
and hiring of
local suppliers

The success of our business requires us to manage risks and opportunities
within our supply chain. Building capacity of local suppliers helps us tomeet legal requirements, maintain our social licence and is also importantto the success of our business due to the remote nature of our operations.

Sustainability Report—Communities andShared Value
Value Chain Performance Data

Local employee
hiring in regions
where we operate

It is critical that we build the capacity of our local communities tocontribute to our operations as employees. These relationships help
us to meet legal requirements, maintain our social licence and are also
important to the success of our business due to the remote nature of
our operations.

Sustainability Report—Communities andShared Value
People Performance Data

Contribution to
Public Policy

There is an increasing expectation that our company contributes topublic policy in a way that aligns with our long-term business strategy,
particularly in relation to climate change. Investors also expect
transparency on any industry associations or lobbying activities.

Sustainability Report—Communities andShared Value
Corporate Code of Conduct

Allkem Sustainability Report 2022

27

FY22 Performance

28

Allkem Sustainability Report 2022

Our long-term focus on the sustainability of our business has been recognised during theyear with ongoing inclusion in the Dow Jones Sustainability Indices, an improved MSCI ESG
rating and becoming a constituent of the FTSE4Good Index series.

Performing in the top quartile ofthe Metals and Mining Industry
in the S&P Global CSA

Improved rating of “AA” in the
MSCI ESG Ratings assessment*

Became a constituent of
the FTSE4Good Index series*The use by Allkem of any MSCI ESG research llc or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute asponsorship, endorsement, recommendation, or promotion of allkem by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

Allkem Sustainability Report 2022

29

Climate Change and Decarbonisation

Allkem supports the Task Force on Climate-related Financial Disclosures (TCFD). We arepleased that the work of the new International Sustainability Standards Board (ISSB) is
incorporating the recommendations of the TCFD. The elements of the TCFD framework
are addressed in our annual reporting as identified below:

GovernanceRisk Management

Allkem's governance of climate
related risks and oportunities

How Allkem identifies, assesses
and manages climate change risk.

• Annual Report p.14

• Sustainability Report—Risk andGovernance Section• Sustainability Report—Risk andGovernance Section

Strategy

Metrics and Targets

How Allkem's business strategy responds
to climate related risks and oportunities
in the short, medium and longer term.

The metrics and targets developedand implemented to manage relevant
climate related risks.

• Annual Report p. 14-15• Allkem Climate Change Statement• Sustainability Report—Climate change anddecarbonisation• Targetting Net Zero in operations by 2035
• Sustainability Report—Climate change
and decarbonisation

We have a range of continuous improvement projects indevelopment or under investigation to optimise existing
operations and new projects to further reduce emissions
intensity of our products.

30

Allkem Sustainability Report 2022

Strategic Focus
The International Energy Agency’s (IEA) Net Zero by 2050
Roadmap for the Global Energy Sector19 incorporates
a projected increase in demand for lithium of 30 times
2020 levels by 2030 and 100 times higher in 2050.
Our strong lithium development pipeline will allow us
to supply the growing market as the world migrates tolower emissions transport and energy solutions. Lithium
supply and demand forecasts that are incorporated in our
strategic business planning draw on a range of climatechange transition scenarios. These are informed by global
commitments and actions that attempt to limit the rise inglobal warming temperatures to 1.5°C and avoid the worst
effects of climate change. Significant growth in lithium
demand is underway and is underpinned by global supportof major economies and automakers to decarbonise
through the adoption of electric transport. Our verticallyintegrated production base allows us to service multiple
markets and customers, reducing potential supply chain
emissions associated with product transportation.
Our operations in Argentina are not currently subject toemissions limiting regulations. Our Mt Cattlin Operationin Western Australia reports annual energy use andgreenhouse gas emissions to the Australian Government
Clean Energy Regulator under the National Greenhouseand Energy Reporting Act 2007 (NGER Act). Mt Cattlin
does not reach the threshold20 for reporting under the
NGER (Safeguard Mechanism) Rule 2015 (the Safeguard
Mechanism Rule) and therefore does not currently operatewith a regulated emissions limit or baseline.
Our James Bay hard rock spodumene project in Canada
will be covered by the Quebec Carbon Trading Scheme21 if
annual emissions exceed 25,000 tonnes of CO2e. If annual
emissions are below this amount, we have the option toregister as voluntary participants in the carbon market.
We have a range of continuous improvement projects indevelopment or under investigation to optimise existing
operations and new projects to further reduce emissions
intensity of our products. Our original commitment to Net
Zero by 2035 was made in 2021 in respect of the Olaroz
Stage 1 and Stage 2 developments. Following completionof the merger with Galaxy Resources Ltd in August 2021
we have expanded the scope of the Net Zero by 2035
commitment to include all of Allkem’s assets. During
FY2023 we are preparing a detailed action plan which will
identify the most effective options for emissions mitigationand the various actions and activities that Allkem will
undertake to deliver on this commitment. Finalisation of afully developed Allkem Net Zero by 2035 action plan has
been included as a performance hurdle in the CEO’s shortterm incentive for FY2023. Further detail on the actions toachieve Net Zero by 2035 will be released once the action
plan has been finalised.

An internal carbon price is used for evaluating long-termvalue, and this value will be reviewed periodically. We
also have a range of continuous improvement projects indevelopment or under investigation to optimise existing
operations and new projects to further reduce emissions
intensity of our products. These projects include:

01

Implementing Renewable Energy
Implementing photovoltaic electricity generation forStage 1 Sal de Vida to cover at least 30% of energy use.
At least 44% of energy for James Bay Spodumene Projectwill be sourced from Hydro Quebec renewable electricity.

02

Dedicated Purification Facility
To allow Olaroz Stage 1 to transition to a dedicatedtechnical grade lithium carbonate facility with anadditional purification plant installed at Jujuy to process
high quality battery grade lithium carbonate. Operating
the battery grade plant at a lower altitude location, closer
to services and workforce will increase efficiencies andenable increased recovery of CO2 from the process.

03

Enhanced Brine Recovery Project
Piloting alternative technologies including hybrid formsof direct lithium extraction, to enhance recovery at Olaroz(Stage 1 and Stage 2) from approximately 75% for primary
production to 95%.

04

Locally Sourced Reagents
Studies have commenced on the local supply andmanufacture of key reagents such as soda ash to meetincreasing requirements with higher production at
Olaroz and Sal de Vida. Development options will
also be considered for Allkem owned lime
properties in NW Argentina which may leadto further efficiency improvements.

19 h
 ttps://iea.blob.core.windows.net/assets/deebef5d-0c34-4539-9d0c-10b13d840027/
NetZeroby2050-ARoadmapfortheGlobalEnergySector_CORR.pdf p.71
20	(100,000 tonnes direct scope 1 annual CO2e annual emissions)21 https://www.environnement.gouv.qc.ca/changementsclimatiques/marche-carbone.asp

Allkem Sustainability Report 2022

31

6%

CO2 at Olaroz

Diesel18%

Natural Gas

18%

Electricity
Generation

Process Heat
Generation

FY22Natural
Performance
Gas

23%

Electricity
Generation

Energy Use and GHG Emissions

Diesel
Our total
fuel use and scope 1 and 2 greenhouse gas emissions for FY22 are summarised below. Over 99% of these
Stationary
consumption
emissionsare classified as direct, Scope 1 emissions. Scope 2 emissions are only associated with electricity use in
our offices. Due to the remote nature of our operations, electricity is currently generated on site using natural gas at(Stage 1 Operations)haul trucks and mine equipment
Cattlin Operations
theOlaroz
Olaroz
Lithium Facility andMt
dieselfuel at the Mt*e.g.
Cattlinmining operations. Borax Argentina also use recovered
Intermediate Fuel Oil (IFO) at the Tincalayu mining operation.
*

33%

Olaroz (Stage 1)
36%
Olaroz (Stage 2 Expansion)
12%

Allkem Total
Scope 1 & 2
GHG Emissions
120.7k tCO2e

Borax Argentina
16%
Mt Cattlin
32%

Natural Gas 48%

Allkem Total
Fuel Use
1,745,289 GJ

Diesel 45%
Intermediate Fuel Oil
7%

Sal de Vida
4%

Energy Use and GHG Emissions

Average operational emissions intensity (Scope 1 and 2) for our lithium assets in FY22 was 2.22 tonnes of CO2e/t LCE22.
They key sources of operational GHG emissions from our lithium operations are summarised below.

Allkem FY22 Lithium Production Operational GHG Emissions Sources
DieselTransportation

1%
6%

Reagent Use
CO2 at Olaroz

Diesel18%

Natural Gas

18%

Electricity
Generation

Process Heat
Generation

Natural Gas

23%

Electricity
Generation

33%

DieselStationary
consumption*

Olaroz (Stage 1 Operations)

Mt Cattlin Operations

Operational Emissions
Olaroz Lithium Facility*e.g. haul trucks and mine equipment

Olaroz (Stage 1)
36%
Olaroz (Stage 2 Expansion)

Natural Gas 48%

12%Total Lithium Facility,
This yearAllkem
at the Olaroz
Stage 1 operation emissions (Scope 1 and 2) totalled approximately
43,400 tonnes
Diesel 45%
Allkem Total
Scope
1
&
2
CO2e and emissions intensity increasedslightly
to 3.37 tonnes CO2e/tonne oflithium
This was due
Borax
Argentina
Fuel
Use carbonate produced.
Intermediate Fuel Oil
GHG Emissions
16%
to increased
precipitation at site during
the year impacting brine concentration.
An increased
quantity7%of brine therefore
1,745,289
GJ
120.7k tCO2e
Cattlinneeded to be processed through the Mt
plant,
requiring more energy.
32%
Sal de Vida
4%22	Lithium Carbonate Equivalent (for the purpose of these metrics, a conversion factor of 8 has been used for Spodumene concentrate to LCE) FY22 intensity value includes Olaroz and
Mt Cattlin operations.

32

Allkem Sustainability Report 2022

Reporting of Scope 1 emissions for the Olaroz Lithium
Facility has been expanded to include carbon dioxide(CO2) used in the purification process23. We are currently
investigating methods to improve the efficiency ofthis process and increase the proportion of CO2 that is
captured and reused in the purification plant. During FY22,
CO2 used in the purification plant but not captured forreuse accounted for 9% of total annual Scope 1 emissions
for the Olaroz Lithium Facility.

Mt Cattlin
During FY22, we reported total Scope 1 and 2 emissions
for Mt Cattlin of approximately 39,000 tCO2e24 associatedwith record
annual spodumene production. These were
Operations
EmissionsOperations
Emissionsover 99%
direct Scope 1 emissions from the use of diesel
fuel on site. The emissions intensity of the spodumene
concentrate product during FY22 was 0.2 tCO2e/dmt25
or 1.61 tCO2e/tLCE26.

The Mt Cattlin solar farm installed in 2010 supplied
134,023 kWh of electricity in 2022. This has resulted
in over 91 tonnes of CO2 emissions avoided during thefinancial year.

The Mt Cattlin solar farminstalled in 2010 supplied
134,023 kWh of electricity
in 2022.
Borax Argentina
FY22 emissions intensity for Borax Argentina operations
improved from 0.44 to 0.30 tonnes CO2e/tonneof product.

Olaroz GHG Emissions (tCO2e)
Olaroz GHG Emissions (tCO2e)

Borax GHG Emissions (tCO2e)
Borax GHG Emissions (tCO2e)70,00070,00025,00025,00060,00060,000

3.32
3.32

3.37
3.37

3.34
3.34

50,00050,0000.44
0.44

20,00020,00015,00015,00040,00040,00030,00030,0000.30
0.30

10,00010,00020,00020,000

5,000
5,000

10,00010,000
0
0

0.44
0.44

2020
2020

2021
2021

2022
2022

Scope 1 (Stage 1)
Scope 2
Scope 1 (Stage 2)
Scope 1 (Stage 1)
Scope 2
Scope 1 (Stage 2)
Scope 1+2 Operations (Stage 1) Emissions Intensity (tCO2e/t)
Scope 1+2 Operations (Stage 1) Emissions Intensity (tCO2e/t)

Olaroz Scope 1
OlarozScope 1GHG
Emissions
GHGSources
Emissions
Sources~43kt
CO2e~43kt CO2eNatural Gas (for electricity
generation)
48%electricity
NaturalGas (forgeneration) 48%
Natural Gas (for processes) 26%
Natural Gas (for processes) 26%
Stationary Diesel 16%
Stationary Diesel 46%
Transport Diesel 1%
Transport Diesel 1%CO2 9%
CO2 9%

0
0

2020
2020

Scope 1 (Campo Quijano)
Scope 1 (Campo Quijano)
Scope 2 (Campo Quijano)
Scope 2 (Campo Quijano)

Borax Scope 1
BoraxEmissions
Scope 1
GHG
GHGSources
Emissions
Sources~17.7kt
CO2e~17.7kt CO2e

2021
2021

2022
2022

Scope 1 (Tincalayu)
Scope 1 (Sijes)
Scope 1 (Tincalayu)
Scope 1 (Sijes)
Scope 1+2 emissions intensity (tCO2e/t)
Scope 1+2 emissions intensity (tCO2e/t)

Natural Gas (for processes) 23%
Natural Gas (for processes) 23%
Stationary Diesel 20%
Stationary Diesel 20%
Transport Diesel 11%
Transport Diesel 11%
IFO 46%
IFO 46%23 Scope 1 emissions totals for FY20 and FY21 have been restated in this report and in Environment Performance data to also include these emissions.
24	This value is based on the full financial year ending 30 June 2022. The FY22 financial statements are based on Mt Cattlin’s results from the 10-month period post-merger completion
date i.e., 25 August 2021 to 30 June 2022.
25	Dry metric tonne of spodumene concentrate with an average grade of 5.6% Li2O.
26 (Conversion factor Spodumene to LCE=8)

Energy Extraction, Production
and Transportation
10%
EnergyExtraction, Production
and Transportation 10%
Purchased Goods and Services

Allkem Sustainability Report 2022
Purchased Goods and Services

33

ScopeOlaroz
3 Emissions
Scope 1
EmissionsOlarozGHG
Lithium
Facility
SourcesNatural Gas (for electricity
generation) 48%
Natural Gas (for processes) 26%
Stationary Diesel 46%

During FY22,
Scope
the1%Olaroz
Transportfor
Diesel~43kt
CO2e3 emissions reported
Lithium Facility totalled approximately
81,900 tonnes
CO2 9%
CO2e. 78% of these were process emissions associatedwith the production of lime that is purchased for use in theponds and plant. 6% was associated with soda ash supply.
Although our current emissions reduction targets relate
only to our Scope 1 and 2 emissions, we recognise that
there are also significant opportunities to work with our
suppliers to reduce emissions associated with production
and delivery of these reagents and other initiatives.

Natural Gas (for processes) 23%

Borax Scope 1
Stationary Diesel 20%
GHG
Mt Cattlin Emissions
Sources
Transport Diesel 11%
Scope 3 emissions
estimated for the~17.7kt CO2fore Mt Cattlin were
IFO 46%

first time in FY22. Downstream processing of spodumene
accounted for 90% of these GHG emissions.
See performance data for detailed breakdown of emissions
across each site and project.

Energy Extraction, Production
and Transportation 10%

Olaroz Scope 3
GHG Emissions
Sources~82kt CO2e

Purchased Goods and Services(soda ash) 6%
Purchased Goods and Services(lime) 78%
Upstream Transportation 3%
Downstream Transportation 1%

Mt Cattlin Scope 3
GHG Emissions
Sources~397kt CO2e

Purchased Goods and Services
2%
Energy Extraction, Production
and Transportation 1%
Downstream Transportation
and Distribution 6%
Processing of Sold Products 90%

Disposal and Treatment of Waste
Generated in Operations 1%

FY23 Future Focus Metrics and Targets
We monitor climate-related metrics, such as water use and intensity, energy consumption and intensity, absolute emissions
and emissions intensity, and waste. These metrics are reported in our performance data available on the Allkem website.
Our Board approved Climate Change Statement outlines our commitment to the reduction of global greenhouse gas
emissions and the transition of our business scope 1 and 2 emissions to net-zero by 2035.
We have developed short- and medium-term preliminary emissions targets noted below. These projections have beendeveloped considering our current operations and development pipeline. Our emissions targets are currently being
reviewed to align with our net-zero commitment. Energy efficiency and utilising renewable energy are key considerations inour development projects moving forward. We are also continuing to investigate the most efficient methods to implement
emissions reductions at our operations.
KPIs

FY22

FY23

FY25

FY30

120,708

197,800

152,500

115,000

2.22

2.86

1.70

1.28

ALLKEM
Total Emissions Scope 1 + 2 (tCO2e) Operations and Expansion
Lithium production operational emissions intensity Scope 1+2 (tCO2-e/t LCE27)

A target of 3.3 tCO2e/t LCE for the Group had been linked with CEO short term incentive (STI) remuneration for FY23.
This target includes both operational and expansion emissions from Olaroz and operational emissions from Mt Cattlin. An
additional 5% of STI remuneration for FY23 is linked with the completion of the Allkem Net Zero Action Plan.

27	Lithium Carbonate Equivalent (for the purpose of these targets, a conversion factor of 8 has been used for Spodumene concentrate to LCE) FY22 intensity value includes Olaroz and
Mt Cattlin operations.

34

Allkem Sustainability Report 2022

Our People
Health, Safety and Wellbeing
Strategic Focus
Ensuring that our workforce is supported, safe and healthy
is consistently identified as one of our most material topics
and we are committed to achieving a “zero incident—zeroharm” workplace across the Group. Our Health, Safety
and Wellbeing Strategy has been developed around the
key pillars of Standards, Systems and Culture. With anunderlying focus on continuous improvement. At Allkem
we believe that Together, we can be Safer.
Following the merger, implementing a consistent
approach to health and safety at each operation andproject was a priority. The Allkem Health, Safety andEnvironment Management Systems Manual provides afoundation for relevant policies and management systems
and covers the following key themes:• Leadership Commitment• Planning and Strategy

The Manual is supported by a series of Corporate
Standards that define minimum expectations and enableeach operation and project team to tailor their operating
practices to achieve our goal of Zero Incident—Zero Harmto people and the environment.

Governance
Each operation and project are accountable to ensure
the site plans and procedures they utilise are sufficient
to align with the Corporate Standards. The Corporate
Health Safety and Environment Team are the owners of
the standards and provide governance and assistance inthe activities required to achieve compliance with them.
Safety performance across the company is an agenda item
at every Board Sustainability Committee meeting. Material
health and safety risks are incorporated in Allkem's Risk
Framework which is reviewed at least annually by the
Board Audit and Risk Committee.

• Metrics and Performance Management

Allkem Policies• Training, Competency and Awareness• Consultation and Communication• Measurement, Reporting and Investigation.

HSEMS ManualGroup HSE Standards

Site HSEM Plan

Site ProceduresStandards

Systems

CultureOur company standards
are simple, easy to accessand align to world's bestpractice to keep our
people safe.

Our company uses simple
systems and leverages
technology to enable ourpeople to be safe

Our company adopts anengaging culture which
promotes health andsafety as a core value

Continuous Improvement
Our company establishes a foundation of seeking to get better at everything we do.

Allkem Sustainability Report 2022

35

FY22 Performance

Injury and Illness Frequency and Results

During the year, all sites were incorporated into our
integrated reporting system platform for health, safety,
and quality aspects of reporting processes. The Allkem
Corporate Health, Safety and Environment team haveworked with subject matter experts to adapt the platform
for the working environment of each user. English, Spanish,and French language interfaces have been developed andimplemented across the business.
Our Olaroz operations have been certified under the
ISO 45001 Health and Safety Management System
Standard. Borax has completed the transition fromOHSAS 18001 to ISO 45001 and is in the processof recertification. Mt Cattlin’s Health and Safety
Management System is also aligned with ISO 45001.
During the year, the Mt Cattlin site has executed a program
targeting a reduction in fatality risks based on International
Council on Mining and Metals (ICMM) guidance.
We have successfully implemented behavioural based
safety programs across our sites to increase reporting of
behavioural observations. The success of these programs
is evident in the increased number of observations
recorded during the year as shown below.

A critical step in the integration process was aligning ourreporting on Recordable Injuries and Illnesses. The basisof the classification framework adopted was based on
the ICMM Guidance paper: Health and Safety Reporting
Indicators 2021. The classifications of injuries andillnesses is also aligned with the Occupational Safety and
Health Administration (OSHA) and other major reporting
bodies. Both Orocobre and Galaxy reported using similar
standards hence the alignment of reporting was simple
and enabled rapid adoption throughout the operations
and projects. It also enables some parity when comparing
previous annual performance.
FY22 was a year where all sites demonstrated improved
Injury Rates with the exception of Mt Cattlin whichsustained 7 Recordable Injuries compared to only 2 in theprevious fiscal year. Activity at the Mt Cattlin operation was
impacted by COVID related issues including contractor andstaff turnover and has been subject to an Improvement
Plan including the appointment of a number of senior
positions in Health, Safety and Environment.

AllkemJames Bay Group Total

Mt Cattlin

OlarozBorax

SdV

Medical Treatment Injury

2

2

0

0

0

4

Restricted Work Injury

2

3

1

0

0

6

Lost Time Injury

3

2

0

0

0

5

5.2

0.6

0

0

0

0.9

7

7

1

0

0

15

12.0

2.2

1.4

0

0

2.6

0

0

0

0

0

0

Lost Time Injury Frequency Rate (LTIFR)
Total Recordable Injury
Total Recordable Injury Frequency Rate (TRIFR)
Fatalities

Number of Behavioural Observations FY22

Combined Historic TRIFR
7

2500

5.5

5.44

5.3

6
2000
5

(’000,000)

1500

1000

4

2.86
2.61

3

2
500
1

0

Q1

Q2

Q3

Q4

0

Hours

36

Allkem Sustainability Report 2022

FY18

TRIFR

FY19

FY20

FY21

FY22

Lost Time Injuries

Significant Potential Incidents (SPI)

Disappointingly we sustained 5 Lost Time Injuries
throughout the year, two at Olaroz and three at Mt Cattlin.

The alignment of the reporting and escalation of
Significant Potential Incidents (SPI), or Incidents with High
Potential was a major improvement through the merger
Combined Historic TRIFR
integration process. All incidents are reported with theiractual7 and potential severity considered. This is subject to
Combined
Historic TRIFR
5.5 local Health
5.44
review by theand Safetysite teams.
5.3

All Recordable
Injuries are
subject to FY22
a detailed Root Cause
Numberof Behavioural
Observations
Analysis investigation and Senior Management review to2500
confirmthatappropriate
lessons havebeen learnt andNumberof Behavioural
Observations
FY22

actions assigned.

6
7
An SPIis onewhere, as per Allkem’s Incident Severity
5.5
5.44
Matrix, there is a possibility of a5.3
single or multiple fatality
5
6
event. These incidents do not necessarily involve any
actual injuries or impacts and often the incident is
4
5
2.86
observed as a near miss occurrence.

2500

Severity Rate

2000

Allkem measures the Severity Rate as the number of(’000,000)(’000,000)

2000
workdayslost or restricted as a result of a Recordable
1500

Injury (i.e. a Lost Time or Restricted Work Case) per
millionhours worked. As a result of some of the injuries
1500
1000
leadingto protracted time away from the employee orcontractor’s full duties the following Severity Rates were
1000
recordedfor FY22:
500

Site

Injury Severity Rate

500
Mt Cattlin
0

Olaroz
0
Borax

SdV

537
Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

46
88
0

James Bay0

Allkem

91

2.61

3
4
Approximately
one third of reported SPIs 2.86
relate tooperating vehicles and heavy machinery. Due to this,2.61
wehave32 implemented a series of action plans, including
the installation of a fatigue monitoring system on the21
Mt Cattlin
light vehicle fleet. Driving to and from ouroperations in the Puna in Argentina is subject to strict
01
journey
management
controls
includingmultipleFY22
drivers,
FY18
FY19
FY20
FY21
specific
hours
oftravelandcall-uppointsatdesignated
Hours
TRIFR
0
locationsonthe provincial
routes.
FY18
FY19
FY20
FY21
FY22

Hours
TRIFR data for detailed breakdown of HealthSeeperformanceand Safety performance metrics across each of our sites.

Vehicles/HME 11
Electricity 4
Dropped Objects
Vehicles/HME
11 4
Lifting
4 4Electricity
EnergyRelease54
DroppedObjects

SPI by Principal
Hazard Category

Fallof Ground1
Lifting
4Dehydration
1 5
EnergyReleaseSPI by Principal
Hazard Category

Fall from
Heightof Ground
1 2
Hazardous
Substances
1
Dehydration
1
Fall from Height 2
Hazardous Substances 1

We have implemented
a series of action plans,
including the installationof a fatigue monitoring
system on the Mt Cattlin
light vehicle fleet.

Significant Potential Incidents FY22
8
Significant
Potential Incidents FY22
8
6

6
4

4
2

2
0
Jul-21

Aug-210 OlarozJul-21

Borax

OlarozBorax

Aug-21

Sep-21

Oct-21

Sal de Vida
Sep-21

Sal de Vida

Nov-21

James Bay
Oct-21

Nov-21

James Bay

Dec-21

Jan-22

Feb-22Mar-22

Apr-22

May-22Jun-22

Jan-22

Feb-22Mar-22

Apr-22

May-22Jun-22

Mt Cattlin
Dec-21

Mt Cattlin

Allkem Sustainability Report 2022

37

Our People
Diversity andInclusion

Strategic Focus

FY22 Performance

Developing a diverse, skilled, engaged, and productive
workforce is essential for contributing to the long-termvalue of our business. At Allkem, we are proud to work
across a diverse range of locations, with a workforce
that values and reflects the cultures of each of the areas
where we operate. We celebrate diversity and inclusion,
and we value the enhanced perspective this brings to
our management approach. We have a strong focus on
increasing gender diversity in the mining sector andbuilding workforce capacity in local communities near ouroperations and projects.

During the year, 120 employees at our Sal de Vida project
participated in Unconscious Bias Workshops and specificcultural awareness training has also been developed for
our James Bay project.

GovernanceAllkem’s Chief Human Resources Officer oversees thedevelopment and implementation of our Diversity andInclusion Strategy within the business through the Human
Resources Departments in each region where we operate.
Our commitment is outlined in Allkem’s Diversity andInclusion Policy. Allkem’s Board People and Remuneration
Committee oversees strategy to achieve diversity targets
for employees.
Allkem’s Chief Sustainability and External Affairs Officer
oversees development of strategy for inclusion of local
and indigenous communities which is implemented by
our Shared Value and Community teams at each operation
and advanced project. This approach is outlined inAllkem’s Community and Social Performance Policy.
Allkem’s Board Sustainability Committee overseas
strategy for building shared value with local communities
including local employment.
The Nomination and Governance Committee oversees
target setting and strategy to achieve Board diversity.

38

Allkem Sustainability Report 2022

A Respectful Workplace Behaviours program wasalso rolled out during the year to all Australian based
personnel including all employees and contractors at
the Mt Cattlin operation.
Two members of our Western Australia workforce werechosen to participate in the Women in Mining Western
Australia (WIMWA) mentoring program.
Language lessons have been offered to staff, andinterpreters are being included on project team calls toensure team members with language barriers are able
to effectively exchange information.

Gender Diversity of Employees:

22%

Proportionof femaledirectors

20%

21%

Proportion
Proportionof femalesof females
employed
employed insenior executive across theAllkem Grouppositions

The percentage of female employees for each of ouroperations and development projects are shown on thenext page.

Sales de Jujuy(Olaroz Lithium
Facility)

Mt Cattlin

James Bay

Male 80%/503
Female 20%/125

Male 78%/74
Female 22%/21

Male 70%/14
Female 30%/6

Borax
Argentina

Sal de Vida

Male 88%/253
Female 12%/34

Male 75%/159
Female 25%/52

We have a strong focus on
increasing gender diversity
in the mining sector andbuilding workforce capacity
in local communities near ouroperations and projects.

Allkem Sustainability Report 2022

39

Local Involvement of Employees
At each of our operations, we are focused on developinga strong and engaged local workforce. The distributionof employees that work at each of our operations during
FY22 is shown below. Local employees are defined as
those who live within the local communities surrounding
our operations. For Olaroz, these are the communities of
Olaroz Chico, Susques, Hauncar, Pastos Chicos, Puesto
Sey, Catua, Jama, El Toro, Coranzuli, and San Juan de
Quillaques. Local communities for Borax Argentina include
Campo Quijano, San Antonio de los Cobres and Santa Rosade los Pastos Grandes. Provincial refers to employees fromthe rest of the Jujuy and Salta provinces respectively. For
Mt Cattlin, we define our local workforce as employees
who live within the towns of Ravensthorpe and Hopetoun.
The remaining Mt Cattlin employees are based in Perthand fly into site as required.

Sales de Jujuy(Olaroz Lithium
Facility)

As our development projects are yet to enter anoperational phase, employees are still largely based in
the more built-up areas near the project sites. Sal de Vida
local employees (18%) are classified as those located in
Antofagasta de la Sierra: Villa de Antofagasta, El Peñón,
Antofalla, Los Nacimientos and the town of Ciénaga
Redonda. The majority of Sal de Vida employees are
currently located in the larger towns within the Catamarca
Province (63%) and in other provinces of Argentina (19%).
Our James Bay local employee lives in the Eastmain
Community and 70% of project employees are based inQuebec. As these projects move into the operation phase,the number of employees based in local communities
closer to the sites will increase.
See performance data for detailed breakdown of diversity
metrics across each of our sites.

Local 40%/253
Provincial 33%/207
National 27%/166

Local 65%/186

Borax
Argentina

Provincial 25%/71
National 10%/28

International <1%/2International <1%/2

Local 57%/54

Provincial 63%/132

Local 18%/38

Mt Cattlin

National 43%/41

Local 5%/1

James Bay

Provincial 70%/14
National 10%/2International 15%/3

40

Allkem Sustainability Report 2022

Sal de Vida

National 19%/41

Our People
Future Ready
Workforce

Strategic Focus
The merger of Galaxy Resources with Orocobre hasbrought together a very experienced workforce with
exposure to brine based and hard rock lithium operations.
The scope to share knowledge between our operations
and future development projects is one of the contributing
factors to the success of the merger. We continue to focus
on the training and development of our workforce to face
the challenges and opportunities presented by our growthstrategy. This is of particular importance considering
the relatively isolated regions where we operate and theincreasingly competitive environment in the lithium sector.

GovernanceAllkem’s Chief Human Resources Officer is responsible
for our workforce talent development and training
strategy within the business. Allkem’s Board People andRemuneration Committee oversees this strategy andperformance outcomes.
Retention of key management personnel and other
employees is also incentivised with participation in the
Allkem Performance Rights and Option Plan (PROP).
Following the Orocobre-Galaxy merger in 2022, the
PROP was reviewed to ensure it appropriately reflected
the growing size and complexity of the Group, the postmerger business plan, and the increased responsibilities
of employees across the group. Under the updated PROP,
Performance Rights (PRs) awarded as a Long-Term
Incentive (LTI) vest over a period of 3 years and are subject
to continuous service until the vesting date. These PRs
are also subject to either revised total shareholder return(TSR) performance conditions or production capacity
performance conditions.

The PRs have an expiry date of the earlier of 2 years after
the vesting date or 5 years after the grant date. The key
performance conditions of the updated plan are outlinedin the FY22 Annual Report. Short Term Incentive (STI)
Performance Rights are also awarded as part of executive
and employee short-term incentives. The amount received
is dependent on achieving individual performance
objectives and are subject to continuous service until thevesting date.

FY22 PerformanceThis year saw significant expansion of our workforce withthe merger of Galaxy Resources and Orocobre.
Approximately 16,800 hours of training were completed
across the business during the reporting period28.
Allkem’s first employee engagement survey postmerger was also conducted during the year with a 62%
participation rate.
See performance data for detailed breakdown of employee
turnover, new hires and training metrics across each of
our sites.

The scope to share knowledge
between our operations andfuture development projects is
one of the contributing factors
to the success of the merger.

28 Excluding Mt Cattlin where this figure was not reported for FY22

Allkem Sustainability Report 2022

41

Workforce Breakdown
Total

Male

Female

Local

Provincial

National International<30

30 – 50>50

Mt Cattlin

95

74

21

54

0

41

0

10

53

32

Sales de Jujuy

628

503

125

253

207

166

2

156

417

55

Borax Argentina

287

253

34

186

71

28

2

34

203

50

Sal de Vida

211

159

52

38

132

41

0

69

124

18

James Bay

20

14

6

1

14

2

3

0

14

6

Total

Male

Female

Local

Provincial<30

30 – 50>50

Mt Cattlin

49

34

15

16

33

0

0

12

26

11

Sales de Jujuy

168

118

50

61

52

55

0

72

90

6

Borax Argentina

54

47

7

8

38

8

0

31

21

2

Sal de Vida

131

97

34

20

77

34

0

49

70

12

James Bay

14

11

3

0

12

0

2

0

10

4

New Hires

42

Allkem Sustainability Report 2022

National International

Turnover
Total

Voluntary Turnover Involuntary Turnover

Mt Cattlin

26.3%

21

4

Sales de Jujuy

8.0%

36

14

Borax Argentina

18.1%

38

14

Sal de Vida

11.8%

15

8

James Bay

10.0%

2

0

Approximately
16,800 hours of
training werecompleted acrossthe business during
the reporting period.

FY23 People Future Focus Metrics and Targets
Group level short, medium and long term targets for TRIFR
and LTIFR have been defined below.

30%

Allkem Group
Level

≥30%

FY22
(actual)

FY23

FY25

FY30

TRIFR

2.6

2.45

2.2

1.5

LTIFR

0.9

0.9

0.7

0.5

An improvement in group level TRIFR performance by
6% (FY23 target of 2.45) has been linked with Allkem’s
CEO performance objectives for FY23. Achievement of
this target will contribute to 10% of the allocated shortterm incentive (STI) performance rights which vest for thefinancial year ending 30 June 2030.

Female Directors by the end of FY2023

Females in Senior Executive29 roles by the endof FY2025≥25%

Females employed across the group by the endof FY2025

We have set the following gender diversity goals andtargets which were communicated in our FY22 Corporate
Governance Statement.

29 'Senior Executive' in this case is defined as a person who is a member of our Executive Management Team that reports directly to the Managing Director.

Allkem Sustainability Report 2022

43

Our Environment
Overview
Environmental
andOutputs for
Brine-Based
Lithium Operations
Environmental inputs Inputs
and outputs
for brine-based
lithium
operation:
Water and Brine

EnergyReagents

Emissions

Brine is extracted from wells inthe salt lake (salar) and pumped
to large scale evaporation ponds.

Energy is generated by thenatural gas generators to powerprocesses in the production
plant and provide electricity forthe camp.

Including lime, soda
ash, HCL and CO2
are incorporated in
the process toremove impurities
and crystalise andpurify Lithium
Carbonate product.

There are 3 main emission sources;
energy generation, process emissions
and transport related emissions.

The operations require
industrial water (non potable*
groundwater), which is extracted
and treated to be used inprocessing. Water is returnedto the evaporation ponds after
processing to recover residual
lithium. There are no operational
discharges to the environment.
*

Diesel is used on site formachinery and transport ﬂeet.
Direct solar energy
is utilised toconcentrate brine inevaporation ponds.

Photovoltaic electricity
generation for Stage 1 Sal
de Vida expected to coverat least 30% of energy use.

Low quality water as defined by
ICMM water quality categories.
Brine has a salt concentration of~330g/L (sea water has 36g/L) andis not considered a water resource.

1

Brine
extraction

Harvested Salts
Mainly sodium chloride (NaCl) andmagnesium hydroxide (Mg(OH)2)
Product
Lithium Carbonate (Li2CO3)Emissions within
our operation

Emissions in ourvalue chain

2
1

Industrial water
extraction

Solar evaporation ponds

Energy used totreat water for
production.

2
Thermal energy iscaptured andreused wherever
possible throughheat exchangers.

By contributing to a
supply chain thatenables the transition
to clean energy
alternatives, potential
future emissions canbe reduced.

3

Water

EnergyEmissions

Groundwater from bore field,
decant return line from in pit
tailings storage facility (TSF)
and rainwater tanks.

Diesel for electricity generation andtransport fleet/plant/machinery.

Within operations from diesel use.

Raw water is sourced fromwater bores and piped toeither the raw water dam to be
used in the processing plant;
or for use in dust suppression
in the mining operation.
Some rainwater (<350m3) is
captured and primarily used
for the drill rigs.

Energy used to treat water in reverse
osmosis plant for human consumption.
James Bay to be connected
to grid electricity sourced
from hydro power.

Emissions in our value chain—transportation and processing of product.
End use of product in battery storage enables
reduction in emissions when used in electricvehicles, transitioning away from internal
combustion engine.
Tailings
Process tailings are stored on site in-pit TSF
Product
Spodumene concentrate

Emissions in our value chain

44

Energy used totreat water for
production.

Allkem Sustainability Report 2022
By contributing to a supply chain that

Brineextraction

1

Industrial water
extraction

Solar evaporation ponds

Energy used totreat water for
production.

2
Thermal energy iscaptured andreused wherever
possible throughheat exchangers.

By contributing to a
supply chain thatenables the transition
to clean energy
alternatives, potential
future emissions canbe reduced.

3

Environmental Inputs and Outputs for Hard Rock Lithium Operations
Water

EnergyEmissions

Groundwater from bore field,
decant return line from in pit
tailings storage facility (TSF)
and rainwater tanks.

Diesel for electricity generation andtransport fleet/plant/machinery.

Within operations from diesel use.

Raw water is sourced fromwater bores and piped toeither the raw water dam to be
used in the processing plant;
or for use in dust suppression
in the mining operation.

Energy used to treat water in reverse
osmosis plant for human consumption.
James Bay to be connected
to grid electricity sourced
from hydro power.

Emissions in our value chain—transportation and processing of product.
End use of product in battery storage enables
reduction in emissions when used in electricvehicles, transitioning away from internal
combustion engine.
Tailings
Process tailings are stored on site in-pit TSF
Product
Spodumene concentrate

Some rainwater (<350m3) is
captured and primarily used
for the drill rigs.

Emissions in our value chain
Energy used totreat water for
production.

By contributing to a supply chain thatenables the transition to clean energy
alternatives, potential future
emissions can be reduced.

Raw Water Dam

Tailings Dam

Allkem Sustainability Report 2022

45

Our Environment
Water Use
Strategic Focus
The water intensity of the lithium industry receives muchattention as some lithium sources are in areas of highwater stress with competing water needs. Although
Allkem’s lithium operations and projects are all located inregions of lower water stress30, we maintain a strong focus
on water use efficiency and reporting transparency.
Allkem sites operate in various international jurisdictions
with unique water contexts. Each operation is governedby a range of country specific environmental regulations,comprehensive site-specific permit requirements andsite-specific reporting obligations. Every Allkem sitemust also meet our company-wide expectations forwater stewardship, water quality protection, reportingtransparency and stakeholder engagement regarding
water as a shared value resource.

The Olaroz Lithium Facility and Sal de Vida are in regionsclassified by the WRI Aqueduct Tool as having low/
medium water stress and low overall water risk31. This
classification is not projected to change through to 2030,
under the range of available climate change scenarios
incorporated in the tool. The Olaroz Lithium Facility does
not draw on surface water or potable or agricultural quality
groundwater. Our brine-based operations extract brinefrom wells and pump it to solar evaporation ponds. Ourbrine has a salt concentration of ~330g/L (sea water has
36g/L) and is not considered a water resource. Processwater use referenced in our performance data refers to thequantity of groundwater extracted during the reporting
period, not brine.
The Mt Cattlin spodumene mine is in south-west Western
Australia and experiences an average rainfall below 430
mm per annum with 75% of the rainfall occurring between
March and October. The mine does not draw on surface
water or fresh groundwater. Water used for processing
mined material is sourced from a groundwater bore field
and in-pit dewatering. Rainwater is also collected in
450m3 tanks and used to supplement groundwater as partof the site water supply. A reverse osmosis plant is utilised
for freshwater requirements on site.
The James Bay project in Quebec, Canada is locatedin an isolated environment with an abundant watersupply. Baseline and impact studies show overall
anticipated project water use will have a negligible
impact on overall water supply in the region. Project
infrastructure intends to minimise impacts on the water
catchment. Our goal is to reuse water as much as possible.
We have completed geotechnical studies on waste
stockpile locations to ensure ground water resources
are not significantly impacted.

Our goal is to reuse water
as much as possible.

30,31 As defined by the World Resources Institute Aqueduct
Water Risk Atlas database46

Allkem Sustainability Report 2022

Argentina Lithium Site Locations and Surrounding Environment

N

Rosario River

Chile

20km

Jujuy Province

Coranzuli

El ToroJama

San Juan Quillayes
Salar deOlarozOlaroz Chico

OlarozCauchari
Reserve

Olaroz Lithium
Facility 3900m
Archivarca River

Susques
52

Jujuy
212km

Huancar
40

70

Pastos Chicos

Catua
Puesto Sey
1V40

Tocomar River
51

129

51

Salta City
32km

40

Rosario River

Salta Province

Salar delHombre Muerto

Ciénaga Redonda

Antofalla

Sal de Vida
Project

LegendLos Nacimientos

Catamarca ProvinceCommunities

High water risk

Operations and project sites

Medium-highwater risk

Villa de Antofagasta

Roads
43

El Peñón

Provincial boundary

Low-medium
water risk

Rivers and drainage

Low water risk

Salt lakes and lagoons

Allkem Sustainability Report 2022

47

Governance

Borax Argentina

Water use at the site level is the responsibility of the Asset
Hydrogeology and Environment Managers, reporting to
the Head of Operations for the site. At the Group level,
the Corporate Environmental Manager oversees water
strategy and policy development and reports directly
to the Chief Sustainability and External Affairs Officer.
Oversight of water risk and strategy implementation is the
responsibility of the Board Sustainability Committee.

FY22 Performance
Overall water use across our operations during FY22 issummarised below:

Borax Argentina continued improving water efficiency to
2.2 m3/tonne of borates products produced during thereporting period, from 3.1 m3/tonne of borates products in
FY21. 9,000 m3 of water representing 6.4% of total water
was recirculated from the evaporation pond system atCampo Quijano for reuse in the plant.

Mt Cattlin
Approximately 258,000 m3 of groundwater was extracted
from the bore field for use on site during FY22. Operationwater intensity is estimated as 1.37 m3/dmt spodumene
concentrate produced.
63% of water extracted was recovered for reuse on site.
See performance data for detailed breakdown of water use
metrics across each of our sites.

Operational Water Use
Olaroz Lithium Facility
Olaroz Stage 1 process water intensity increased slightly
by 2% during FY22 to 49.9 m3/tonne of lithium carbonate
produced. This was due to increased rainfall at Olaroz
during the period impacting brine concentration in theponds. As a result, a higher amount of brine was processed,
requiring increased process water.
During the year, approximately 245,000 m3 of water,
representing 24% of total groundwater extracted wasrecirculated through the plant and pond system.

Total water
extraction(m3)
Total water
extraction (m3)Due to the expansion activities also taking place at Olaroz,
we have continued to separate the water used in current
operations (Stage 1) for comparability year on year. This
year we have also separated reporting of the water andenergy use associated with construction activities forStage 2 and the completed assets for Stage 2 that were not
yet at the production phase during the year.

Olaroz Groundwater Extraction (m3)Olaroz Groundwater Extraction (m3)
700

700
600
600

48.8
43.0

48.8

49.9

Sal de Vida
1%/22,453
James
Bay <1%/8,299
James Bay <1%/8,299

Borax Water Extraction (m3)Borax Water Extraction (m3)
180

180
160

43.0

160
140

500
(’000)(’000)(’000)(’000)

500

300

3.1
3.1

120
100

2.2
2.2

100
80

60
40

200

40
20

100
100
2020

2021

2022

20
0
2021

2022

2020
Groundwater2021
Surface Water

Water Utilities 2022

2 (Construction)
Stage 2 (Assets)
Stage 1 (Operations)Operational
Intensity (m3/tStage
Lithium
Carbonate produced)

Groundwater
Intensity(m3/t)

Surface Water

Water Utilities

Operational Intensity (m3/t Lithium Carbonate produced)

Intensity (m3/t)

02020
Stage 1 (Operations)

48

3.4

80
60

300
200

0

3.4

140
120

400

Borax
Argentina
9%/134,297
Mt
Cattlin18%/264,285
Mt Cattlin
Sal
de Vida 18%/264,285
1%/22,453

49.9

400

Olaroz Operations
44%/641,860
Olaroz Operations
44%/641,860
Olaroz(Stage 2 Expansion)
27%/396,249
Olaroz (Stage 2 Expansion)
27%/396,249
Borax Argentina 9%/134,297

2021
Stage
2 (Construction)

Allkem Sustainability Report 2022

2022 2 (Assets)
Stage

0

2020

Our Environment
Waste and Tailings Management
Strategic Focus
Mineral and Processing Waste
Hard Rock Mining Operations
The volume of waste rock generated at our hard rockmining operations is associated with the volume ofore processed. Mineral waste in the form of mine site
overburden is deposited in conventional waste rockpiles on site. The stockpiles are designed for long term
stability with a focus on preventing potential impacts
that could affect our employees, the environment, or
local communities.
Allkem is committed to managing tailings storage facilities(TSFs) in a safe manner consistent with regulatory
requirements, applicable guidelines and standards, suchas the Global Industry Standard on Tailings Management(GISTM), the International Commission on Large Dams
(ICOLD) and the local regulatory guidelines in each areaof operation (e.g. WA Department of Mines, Industry
Regulation and Safety (DMIRS) and the Mining Associationof Canada (MAC) Guide to the Management of Tailings
Facilities). These requirements apply throughout the
TSF life cycle including planning, design, construction,
maintenance, decommissioning, rehabilitation and postclosure monitoring and maintenance. We are continuing
to work to align our approach and reporting across ourhard rock operation in Western Australian and our James
Bay project in Canada. During FY22 Mt Cattlin mine wasour only operation with TSFs in place as defined by the
GISTM. Process waste materials from operations of Borax
Argentina are defined as tailings however, due to the low
moisture content and resulting solid consistency, storage
facilities are not required. These materials are managed as
per typical low profile mine waste stockpiles.
When operational, our James Bay hard rock mining projectin Quebec will produce tailings through treatment of theore by dense media separation (DMS). These tailings will
be filtered and dehydrated on a sieve to obtain a moisture
rate below 10%, which would allow loading, transportationand piling by co-deposition with mining waste rock in four
separate piles. These piles are referred to as the waste
rock and tailings storage facility (WRTSF). A multicriteria
analysis was carried out to determine the optimum
location of the WRTSF, considering the environmental,
technical, economic, and socio-economic aspects. The
WRTSF embankments have been classified using theCanadian Dam Association (CDA) “Dam Safety Guidelines”(2013) and “Application of Dam Safety Guidelines to
Mining Dams” (2019).

Brine Operations
Exploration, well construction and boring activities at
the Olaroz Lithium Facility generate drill cuttings madeup of extracted brine and additives which are managed
responsibly and returned to the salt flat with minimal
impact on the environment. The additives used at different
stages are stabilisers, gelling agents, and flocculants. The
compounds used are polymeric, easily biodegradable anddo not alter the chemical properties of the environment in
the salt flat.
During the brine concentration process, salts (mainly
sodium chloride (NaCl)) precipitate in the bottom of
the ponds. Magnesium hydroxide (Mg(OH)2) is alsoprecipitated at the beginning of the pond system wherelime is added. Most of the ponds are “harvestable”, inorder to recover the capacity of the ponds. The harvestableponds are periodically drained, and the precipitated salts
are removed to stockpiles on site. When the process iscomplete, the emptied ponds are refilled with brine andbrought back in the pond system.
A feasibility study has been conducted to determine futureuses for the salts harvested from our evaporation ponds.
Potential uses include mixing with earth for compacting
roads and building additional ponds. We continue to workwith local authorities to manage approval processes forpotential uses of these materials. A potential future use forsalts not used for other purposes is as filling material at thecompletion of operations.

Operational Waste
We are committed to reducing the amount of solid
waste generated per person at our sites by establishingeffective recycling initiatives, supported by monitoring andreporting of metrics against performance targets. Waste
reduction and process efficiency is particularly importantdue to the very remote areas where we operate.

Allkem is committed to
managing tailings storage
facilities (TSFs) in a safe mannerconsistent with regulatory
requirements, applicableguidelines and standards.

Allkem Sustainability Report 2022

49

FY22 Performance
Mineral and Processing Waste
We continue to research opportunities to improve thehandling, storage and repurposing of mineral processwaste across our operations. During the year, approximately
1,170,000 tonnes of salts (mostly sodium chloride) were
harvested from the concentrating brine in the ponds at
Olaroz and stockpiled.

Circular Economy Case Study
Borax Argentina has been working with local company
Salta Plast since 2020 to implement a circular economy
project. As part of the agreement, Salta Plast has provided
containers and bags to aid in the correct classification andsorting of waste at our sites. The plastic waste collected by
employees at each site is then provided to Salta Plast andused in the manufacture of more containers and bags.
Borax Argentina has been recognised as a leader in theprovince of Salta. The company continues to reinforce
shared value through training employees and community
members to facilitate the sorting process. In FY 2022,
10,948 kg of plastic was delivered and to date, 1543 bagsof recycled material have been received.

GovernanceAt an operational level, Allkem has integrated KPIs andresponsibility for waste/tailings management with theEnvironmental Superintendent and the Health, Safety
and Environment Manager at each site. Allkem’s Shared
Value and Community teams also support engagementon the management of waste, undertaking stakeholder
engagement projects in local communities, as well as
supporting the Company’s monitoring and remediation
activities where applicable. At the Grouplevel,
the
Mine
waste
rock
(overburden material) 81%
Borax
Corporate Health
Safety and Environment
team oversees
Tailings 14%
Mineral Waste
waste management
strategy and policy development
721.7kt
Mineral waste
and reports directly to the Chief Sustainability
andrepurposed/reused5%
External Affairs Officer. Oversight of waste management
strategy implementation is the responsibility of the Board
Sustainability Committee.

Waste Disposed(tonnes)~626 tOlaroz (Including Stage 2
and Expansion) 67%
Borax Argentina 6%
Mt Cattlin 13%
Sal de Vida 13%
James Bay 1%

50

Allkem Sustainability Report 2022

We estimate that the operations of Borax Argentina
produced approximately 721.7 kt of mineral waste
during the year. Of this, 14% was stockpiled dry tailings
material and 5% (approximately 27 kt) was considered aby-product and was reprocessed in the Campo Quijano
Plant. The remaining 81% was overburden material that isstockpiled on site.
The current in-pit TSF at Mt Cattlin (SE in-pit TSF) was
commissioned during the year with the first tailings
disposed in March 2022. The previous in-pit TSF (SWin-pit TSF) was decommissioned in February 2022. The
in-pit TSFs have no raised embankment walls as they
are backfilling completed mining pits and present a low
safety risk. Mt Cattlin also has a decommissioned surface
TSF (Paddock TSF) which has been capped and is being
utilised as a storage area for waste rock. During the year,
approximately 330,662 tonnes of tailings were generated
and disposed of in the TSFs on site.Mine waste rockBorax

(overburden material) 81%

Operational Waste

Olaroz (Including Stage 2
and Expansion) 67%

Tailings
14%
Lithium
One Inc.,(acquired by Galaxy
Resources
in 2012)MineralWaste
wasterock facility
included721.7kt
a closed, historic tailings Mineral
and waste
repurposed/reused 5%in the James Bay and Northern Québec Agreement region.
During FY22 we completed detailed engineering and willcommence remediation of this area in FY23 to ensure thesite is environmentally safe for future generations. As a partof this process, we are consulting with the Cree Nation of
Waswanipi. A summary of each of our TSFs is available in theEnvironment Performance data available on our website.

Waste Disposed
Approximately
half of all operational
waste
produced
at ourBorax
Argentina
6%(tonnes)sites during
the year was recycled.Mt
Seeperformancedata
Cattlin13%~626 tfor detailed
breakdown of waste andrecycling
Sal deVida 13% metrics
across each of our sites.
James Bay 1%

Waste Recycled(tonnes)~608 tOlaroz (Including Stage 2
and Expansion) 74%
Borax Argentina 6%
Mt Cattlin 14%
Sal de Vida 6%

Our Environment
Land Use and Biodiversity Management

Strategic Focus
Our business can only be sustainable if we operate within athriving society that benefits from a healthy environment.
Allkem seeks to prevent and minimise biodiversity impacts
and land disturbance through a common framework ofstandards and guidance across every Allkem operation
while recognising the unique characteristics of each of
our sites.
Allkem’s Olaroz Lithium Facility is located within the OlarozCauchari Reserve, in the province of Jujuy. This reserve
was created in 1981 with the primary goal of protecting
the vicuña (Vicugna vicugna) species. Vicuñas are native to
the Puna, and are found in Peru, north-western Argentina,
Bolivia, and northern Chile. The reserve was designated as amulti-use area in which agricultural, mining, and scientifictechnical research programs are permissible.
Borax Argentina sites at Sijes and Tincalayu, are locatedin the Andes Reserve in Province of Salta. The Sijes site isalso located within a Vicuña Reserve. The main wildlife risk
identified for our Argentine operations and development
projects is associated with increased likelihood of animal
vehicle collisions associated with travel to and from oursites. We have implemented specific programs, including
restrictions on vehicle movements, employee training
on wildlife preservation and warning signs with reduced
speeds in locations with animal presence, such asnear rivers.
Our Mt Cattlin project has minimised the clearing of native
vegetation by preferentially locating infrastructure andwaste rock landforms on previously cleared land. We havealso partnered with the local high school to grow tube
stock for the waste stockpile rehabilitation program.

The James Bay project is characterised by hills andvalleys containing peat bogs, and terrestrial communities
composed mainly of jack pine and heaths. Several
large species of mammals are likely to frequent thearea together with small terrestrial wildlife species
potentially present.
To mitigate against impacting these ecosystems, theproject’s site layout is planned to keep all structures
close together and within the catchment to minimise
the environmental impact. Environmental impactsof the project have been identified and mitigation
measures proposed as part of the impact assessment
approvals process.
At Sal de Vida, the direct area of influence of the projectis on the salar. Our work is focused on mitigating any
indirect impacts to the Los Patos river which flows throughthe site and its downstream basin. We also conduct a fullevaluation and control any possible impact that brine
extraction might have in other parts of the Salar.
Allkem is committed to preserving local biodiversity and toensuring controls are in place to monitor potential impacts
and establishing best practice mechanisms to maintainour social license to operate.

GovernanceSpecific risks and opportunities are identified andmanaged at the site level. Each project and operation havean environment team reporting to the General Manager or
Site Operations Director. At the site level, as part of eachenvironmental impact and project feasibility study, we
assess the biodiversity importance of an area, quantify ourpotential impacts and apply the mitigation hierarchy of
avoidance, minimization, rehabilitation and offsets. Noneof our projects are in World Heritage listed areas.
Allkem Sustainability Report 2022

51

We identify and manage risks and opportunities through:• The identification of ecosystems, habitats, species
and communities of high ecological value that may beaffected by our activities.
• An assessment of the extent to which our operations
may have an impact on biodiversity, and theconsideration of design alternatives and mitigation
measures that minimise the effects on the environmentand stimulate positive biodiversity outcomes.
• Where impacts cannot be avoided, we collaborate withlocal communities, indigenous peoples, government
authorities and non-governmental organizations(NGOs) in the development of site-specific biodiversity
strategies and projects to enhance rehabilitation andapply offsets if appropriate.
• We implement ongoing participatory monitoringof biodiversity health so that the impact of ouroperations can be measured, evaluated, communicatedand addressed.
Allkem’s biodiversity governance approach considers
impacts within our zone of operations and the areasof influence surrounding our sites. The Corporate
Environmental Manager, reporting to our Chief
Sustainability and External Affairs Officer oversees
implementation of the Environment Policy that outlines
our expectations to protect biodiversity at each stage fromfeasibility and project design through to operation andclosure. Allkem’s Board Sustainability Committee oversees
Board awareness of maintaining a longer-term outlook andevaluation of biodiversity impacts and potential impact on
business strategy.
Biodiversity risks identified at the site level are incorporated
in operational risk registers. Material risks are then included
within Allkem’s Risk Framework with oversight of the Board
Audit and Risk Management Committee.

52

Allkem Sustainability Report 2022

FY22 Performance andCase Studies

Olaroz—Vicuñas Case Study
Allkem has been working with the Olaroz Chico
community since 2019 to implement the Sustainable
Vicuñas Management Project. This project presents anopportunity to generate shared value with the community
by supporting the traditional ‘Chaku’ vicuñas catchingand shearing practices whilst also monitoring vicuñas
population numbers in the region. Allkem contributes tothis project by coordinating vicuñas specialists to provide
the required technical support and training for the Olaroz
Chico community. During the year, four participatory
workshops were conducted by specialists to provide tools
for the implementation of the Vicuña Conservation andManagement Plan (PCMV). The PCMV was authorized byministerial resolution, enabling the community of Olaroz
Chico to become a Vicuña Management Community, andpermission was received to begin construction of therequired structure. During the year Allkem contributed
approximately US$ 32,270 to the project. This investment
included lodging and meals for project participants andmaterials required for construction.

During the year Allkem
contributed approximately
US$32,270 to the project.

Mt Cattlin
The Australian Environmental Protection and Biodiversity
Conservation (EPBC) Act Protected Matters Database andthe Western Australia Department of Parks and Wildlife
Threatened and Priority Fauna websites identifies notablespecies in the general area of the mine. Two Schedule 1(Fauna which is rare or likely to become extinct) species;
two Schedule 2 (Specially Protected Fauna), one Priority 1
Reptile, and five Priority 4 Fauna taxa may potentially occur
in the region.
A habitat survey was conducted upon 598 ha within the
Mt Cattlin tenements in November 2021 by an external
consultant. Diverse fauna habitats were identified but
threatened flora species are not present. One site east of
the Mt Cattlin mine site was found to have vegetation that
may support Mallee fowl and other significant species.
A 2km buffer has been applied to this area.

Rehabilitation is planned for each Autumn / Winterplanting seasons, with 1.47 ha planted in 2022,
adding to plantings in previous years. Awareness of
weed management, topsoil management and otherrehabilitation activities are discussed regularly between
the mining and environmental teams onsite to ensure themost productive outcomes. Rehabilitation strategies arebeing proposed to encourage the gradual return of several
terrestrial species to disturbed areas after minesite decommissioning and rehabilitation.
As part of the Mt Cattlin mine closure plan, 45 ha is tobe rehabilitated, despite only 15ha of native vegetation
being disturbed by mining infrastructure. Upon
confirmation dates for mine closure, rehabilitation
partnerships with larger land-care groups may beinvestigated to provide benefits for both the environment
and the local community.
Further information on biodiversity for each site andproject is available in our sustainability performance data.

As part of the Mt Cattlin mine closure plan, 45 ha is to berehabilitated, despite only 15 ha of native vegetation being
disturbed by mining infrastructure.

FY23 Environment Future Focus Metrics and Targets
We have chosen to define water metrics and targets at the operational level due to the site-specific nature of water risk.
Targets for Mt Cattlin will be reviewed following any decisions to extend the mine life.
Performance

FY22

FY23

FY25

FY30

Mt Cattlin
Operational water use intensity(m3/dmt spodumene concentrate)

1.37

1.25

N/A

N/A

Olaroz Lithium Plant (Stage 1)
Operational water use intensity(m3/t lithium carbonate)

49.9

48

<45

<40

Allkem Sustainability Report 2022

53

Communities and Shared Value

Strategic Focus
Our licence to operate is gained and maintained bydeveloping strong, trusted relationships with local
communities and governments in areas where ouroperations are located.
We are privileged to have respectful partnerships withlocal and indigenous communities in Ravensthorpe,
Western Australia, the provinces of Catamarca, Jujuy andSalta in Argentina and in the Quebec Province of Canada.
We understand the importance of listening to all voicesthat make up our communities and being responsive tocommunity and government concerns.
We monitor and manage social and environmental impacts
and opportunities and make this information available
through regular engagement activities.
Significant value flows back to the local communities
where we are based. This value is distributed through fees,
taxes and royalties paid to local governments, salaries paid
to local community members who work at our operations
and payments made to local suppliers and contractors
who provide products and services.
We have aligned our shared value programs with the UN
Sustainable Development Goals with a particular focus on
SDGs 7, 8 and 13.

We develop strategic, collaborative projects and programs
that promote the socio-economic resilience and autonomy
of local communities in harmony with the environment,
through utilisation of traditional livelihoods, natural
resources and new technologies. Capacity building
programs and initiatives enhance local employment andbusiness opportunities and promote local economic
development. Our aim is to measure the longer-term
outcomes of our community activities, rather than only
the short-term investment that we make or the activities
that we undertake each year. This requires developing
social baseline data so that we can measure the changethat occurs.

Governance
The Sustainability Committee oversees Board awarenessof risks and opportunities associated with communities
and potential impact on business strategy. This committee
also oversees implementation and reporting on our
strategy for building shared value with local communities.
Community engagement and shared value programs aredeveloped and implemented at each site by the Shared
Value and/or community relations teams, reporting
directly to Allkem’s Chief Sustainability and External Affairs
Officer, who has responsibility for corporate level oversightof our community and shared value programs.
Allkem’s commitment is outlined in our publicly available
Community and Social Performance Policy. This policy
applies to Allkem, our employees and our suppliers.

54

Allkem Sustainability Report 2022

FY22 Performance

Local Procurement*

Community Contributions

Strategic Community Investment

Grants and Donations

Olaroz$37,774,000$858,370$ 63,15732$75,213

Borax
Argentina$6,297,000$31,508$23,75833$7,750

Mt Cattlin$2,084,000$177,681$36,315$80,075*Value of supply contracts awarded to local community suppliers.

Community Capacity Building Case Studies
We have continued developing our impact measurement methodology aligned with the Business for Societal Impact (B4SI)
Framework for our community investment initiatives in Argentina. We expect to be able to start reporting on long termmeasured outcomes for the Olaroz community capacity building projects in FY23.

Argentina Community Infrastructure Projects
Allkem has contributed to infrastructure works on a primary and secondary school for the community near the Sal de Vida
project. We have also provided solar hot water systems in each of the homes and implementation of wireless internet
service that benefits the 11 families in the area.

Huancar
In Huancar, a community of 430 people, we havecontributed to the building of a tourist lodge composedof two, family sized cabins. The lodge was built withlocal materials, using traditional construction methods.
Revenue from the rental of these cabins to tourists willcontribute to community funds and allow for further
investment in maintenance of infrastructure systems andcultural and sporting activities. Financial investment in thisproject in FY22 was US$17,446.

Catua
A synthetic turf soccer field has been constructed in Catua,
a Pueblos Originarios community of 450 inhabitants.
This is the first synthetic turf field in the Susques regionof the puna, where a lack of suitable grass fields has
previously prevented local communities from developing
sporting activities such as football. This project wascompleted in partnership with the community and otherbusinesses in the local area. Investment in this project in
FY22 was US$22,030.

32 Includes amounts delivered through the Community Infrastructure program and Internet service for the communities.
33	Although Borax Argentina does not have a formal Strategic Community Investment program in place, this category includes investment actions such as provision of internet services
for communities and education programs.

Allkem Sustainability Report 2022

55

Argentina Community Education Programs
In July 2021, an agreement was signed between Allkem(Sal de Vida) and the Ministry of Education of the Provinceof Catamarca to develop a program for the completion of
secondary studies for members of the local community of
Antofagasta de la Sierra.

Argentina Local Food Production
In the Andes area of the Puna region of North-West
Argentina, communities are very isolated geographically.
The people who live in this region participate in smallscale agriculture and livestock farming, and production ofhandicrafts and activities related to mining production.
Allkem has worked in partnership with these communities
to build Family Food Production Units. During the year,
participants in this program have received training,materials, seeds, and technical support to build the units,
plant, grow and harvest produce.

The program was developed and implemented over
the year, culminating successfully in June 2022 with
16 participants completing their secondary studies.
10 of these successful participants are members of theKolla Atacameña aboriginal community of Antofalla.
The Sales de Jujuy continuing education program has
85 participants. 54 employees of Sales de Jujuy and 31
employed by contractors. 27 students have now graduatedwith two students continuing their studies in Health and
Safety with the help of scholarships funded by Allkem.
Our Shared Value team have also worked to increase
local knowledge of regional agricultural and livestock
development in the areas surrounding the Olaroz Lithium
Facility. Monthly meetings were held from October 2021
with 46 members of the communities of Huáncar, Olaroz
Chico, Puesto Sey, Pastos Chicos and Susques. Allkem
participated with the technical knowledge of our Shared
Value team, logistics and financial support.

James Bay Community Consultation
Throughout the planning and approvals process for theJames Bay project in Quebec, we have maintained astrong focus on building trusted relationships with local
community members. We have a Community Liaison
Officer based in Eastmain who is available to discuss any
concerns or questions that the community have about the
project. We have also developed other communication
channels for community feedback, questions, andgrievances as we have undertaken the social andenvironmental impact assessment (ESIA) for the project.

56

Allkem Sustainability Report 2022

Several public consultation sessions have been held
during the year to discuss our project and understandthe different concerns of the communities of Eastmain,
Waskaganish and Waswanipi and find solutions together.
Our project will generate economic benefits in the Cree
community during the operation phase. These benefits will
include direct employments as well as the flow throughbenefits associated with the mine’s activities on local
existing and new businesses.

Mt Cattlin Community Consultation Group (CCG)
The Mt Cattlin CCG is comprised of Ravensthorpe community members and personnel from the Allkem management team.
This partnership is an important channel through which we have strengthened communication between our operationsat Mt Cattlin and the surrounding community including Indigenous leaders, the Shire of Ravensthorpe, local schools, andcommunity groups. Meetings are held quarterly, and we encourage community members to ask questions and raise any
concerns or issues about our operations. Information gained from these meetings allows us to address community concerns
and implement new initiatives. Through this engagement we have identified the following five focus areas:

Health and Wellness

Supporting Indigenous Culture

Allkem identified that the local community gym which
is owned and operated by the Shire of Ravensthorpe
required upgrading. We are proud to be able to improveamenities in Ravensthorpe and provide residents
with access to them, which also promotes healthierlifestyle choices.

We acknowledge the connection that Indigenous people
have with the land and seek to work together to build
constructive and respectful relationships. We haveformed an important partnership with the elders of theSouthern Noongar and Wagyl Kaip local Indigenous groups
and by working together, we are able to understandthe importance of the cultural heritage surrounding
the Mt Cattlin mine. The Indigenous people in the local
community are invited to perform blessings, smoking
ceremonies and have developed awareness training to
educate our workforce on the significance of the cultural
heritage in the region.

Education and Learning
Our “Pitch your Project” initiative was created for the local
community and not-for-profit groups to apply for financial
support for their projects from Allkem. All applications areassessed to ensure they align with the community visionand focus areas.

During FY22 we sponsored the Songlines Genestreams
Sculpture Project which is a nation-wide project
combining art, ecology, geology and history, particularlyFirst Nations Peoples connection with land and country.
The project leaders identified Ravensthorpe as a suitablesite to honour the deep time history of the region.

Tourism and Economic Stimulation
Allkem recognises the importance of working with thecommunity and to acknowledge this we hold an annual
community event in appreciation of the town. The event
is run by Allkem staff volunteers from both our corporate
office and mine site. We provide entertainment forfamilies, site tours and food and drink trucks. This is one of
the biggest events for the town and we welcome over 500
people from both Ravensthorpe and Hopetoun to join us
each year.

Youth Development
Our “Believe in Yourself” initiative aims to inspire andconnect the youth of Ravensthorpe by assisting withthe availability of focused services and programs in thetown, including further education and training, events,
workshops and sponsorship. These experiences develop
leadership, communication and problem-solving skills,
whilst challenging and discovering their strengths
and talents.

This partnership is an important channel through which we havestrengthened communication between our operations at Mt Cattlin
and the surrounding community including Indigenous leaders, theShire of Ravensthorpe, local schools, and community groups.

Allkem Sustainability Report 2022

57

Suppliers
The number of local suppliers for each of our operations during FY22 are shown below.

Sales de Jujuy(Olaroz Lithium
Facility)

Borax Argentina

Mt Cattlin

Local 4%/28

Local 5%/19

Local 11%/45

Provincial 20%/157

Provincial 38%/160

Provincial 66%/262

National 70%/529

National 56%/240

National 19%/75

International 6%/45

International 1%/6International 4%/14

Value of supply contracts awarded to locally based suppliers (US$)$37.8m				$6.3m				 $2.1m
Olaroz					Borax Argentina				 Mt Cattlin

The value of supply contracts awarded to locally based suppliers in FY22 tripled for the Olaroz Lithium Facility toapproximately US$ 37.8 million.

Tax and Royalty Payments
The Allkem Tax Policy is available on our Company website, and outlines tax management practices that apply throughout
Allkem and its Subsidiaries. We also plan to publish a separate Taxes Paid report from FY23. This will further increasetransparency and ensure all stakeholders can easily understand the contribution we make in the countries in which we
operate through payments of taxes and royalties. During FY22, the following taxes and royalties were paid in Australia andArgentina. We were not liable for taxes or royalties in Canada in FY22.
Country and Level of Government
Australia Total

Employee and Other Withholdings
US$’000

18,1843,480

Australia Taxation Office

7

3,480

State of NSW

19

0

State of Queensland

86

0State of Western Australia

18,0720

Argentina Total

29,893

9,289

Administración Federal de Ingresos Públicos

24,986

6,842

Province of Jujuy

4,762

1,814

0

410

Province of Catamarca

58

Total Tax and Royalty Payments Borne
US$’000

Province Of Buenos Aires

036

Province Of Salta

78

187

Municipal of Campo Quijano

180Municipal of San Antonio de los Cobres

340Municipal of Susques

15

0

Allkem Sustainability Report 2022

Partnerships, Memberships
and Affiliations
Allkem’s Code of Conduct states that the Company does not engage in political activities and any employee who
wishes to participate in this type of activity must do it individually, making it clear that they are not acting on behalf of
the Company. Allkem (as a Group, or through our subsidiary companies) supported and contributed to the following
industry associations and external initiatives during the reporting period.

International Lithium Association(ILiA)
ILiA is the global trade association for the lithium
industry and represents the entire lithium value
chain. Allkem is a core member of ILiA. The
primary focus areas of our involvement during
the year have been:

Future Battery Industry
Cooperative Research Centre(FBICRC)

Association Minière du Québec(QMA) and Argentine Chamberof Mining Entrepreneurs (CAEM)The FBICRC is a partnership of industry,
government and researchers focused onbattery industries in Australia.

Both CAEM and QMA support the Towards
Sustainable Mining (TSM) Initiative developedby the Mining Association of Canada.

• Developing industry level understanding ofmaterial ESG impacts and opportunities• Industry response to proposed hazard level
reclassification of lithium salts.
• Dialogue with Argentine government bodies
and regulators to increase understanding oflithium industry structure and transfer pricing.

United Nations Global Compact(UNGC)

Certified Management
Systems

Allkem has been a participant of the United
Nations Global Compact since 2018 and is amember of the UNGC Network Australia.

FY23 Community and Shared Value Future Focus Metrics and Targets
Successfully negotiating required agreements with indigenous communities, including the Impact and Benefits
Agreement with the Cree and the revised Olaroz community agreement are key performance objectives that arelinked with the short-term incentive (STI) for Allkem’s CEO in FY23.

Allkem Sustainability Report 2022

59

Pistrelli, Henry Martin y Asociados S.R.L.
Tel: (54-11) 4318-1600/4311-6644
Pistrelli, Henry Martin y Asociados S.R.L.
Tel: (54-11) 4318-1600/4311-6644
25 de mayo 487 - C1002ABI
Fax: (54-11) 4510-2220
25 de mayo 487 - C1002ABI
Fax: (54-11) 4510-2220
Buenos Aires, Argentina
ey.comBuenos Aires, Argentina
ey.comINDEPENDENTCERTIFIED
PUBLICACCOUNTANT’S
LIMITEDASSURANCEREPORTINDEPENDENTCERTIFIED
PUBLICACCOUNTANT’S
LIMITEDASSURANCEREPORT
To the DirectorsofTo the Directorsof
ALLKEM
LIMITED
ALLKEM LIMITED
1- Engagement
purpose1- Engagement
purposeWebeenhaveengaged
been engaged
by Allkem(“the Company”)
a limitedassurance
We haveby Allkem
LimitedLimited(“the Company”)
to issuetoaissue
limitedassurance
reportovercertainindicators
contained
intheSustainability
Report2022(“theReport”),
report over certain indicators contained in the Sustainability
Report 2022 (“the Report”),threferenced
with
“✓”,
for
the
year
ended
June
30
2022,
that
have
been
preparedinthreferenced with “✓”, for the year ended June 30 2022, that have been prepared in line withline withthe guidelines
set Global
by the Global
Reporting
Initiativein theGRI Standards.
the guidelines
set by theReporting
Initiative(GRI) in(GRI)
the GRI
Standards.
2- Boardof Directors’
responsibility
2- Boardof Directors’
responsibility
The Company’sBoard
is responsible
the preparationand presentationof the Reportin
The Company’s
Board isresponsible
for the forpreparationand presentationof the Reportinaccordance
with
GRI
Standards.
This
responsibility
includesdefining
the
bases
and
criteria
accordance with GRI Standards. This responsibility includes defining the bases and criteria
the preparation
the Report
as defining,
adapting
and maintaining
thefor thefor
preparationof the ofReportas wellasaswelldefining,
adapting
and maintaining
themanagement
systems
andinternal
controls
from
which
the
informationisobtained.
management systems and internal controls from which the information is obtained.
3- Public
Accountant’s
responsibility
3- Public
Accountant’s
responsibility
Our responsibility
is to express
a limitedassurance
conclusion
theStandards
GRI Standards
Our responsibility
is to express
a limitedassurance
conclusionon the on
GRI
indicators
mentioned
in
item
1
and
includedintheReport,based
on
our assurance
indicators mentioned in item 1 and included in the Report, based on our assurance
engagement.
engagement.
4- Professional
4- Professional
work work
Our professional
workconducted
was conductedin accordancewith standards
forassurance
other assurance
Our professional
work wasin accordancewith standards
for otherengagements
laid
down
in
sectionV.A.,
secondpartofTechnical
Resolution
37 issued
engagements laid down in section V.A., second part of Technical Resolution No. 37 No.
issuedbytheArgentine
FederationofProfessional
CouncilsofEconomic
Sciences(“RT37”),
by the Argentine Federation of Professional Councils of Economic Sciences (“RT 37”), which which
is on
based
on the international
standard
ISAEestablished
3000 establishedby the International
Federation
is based
the international
standard
ISAE 3000by the International
FederationofAccountants.
Thesestandards
requirethat
wecomplywithethicalrequirements,of Accountants. These standards require that we comply with ethical requirements, as wellas wellplanand executethe assignment
to limited
obtain limited
assurance,as that as
wethatplanweandexecutethe assignment
in orderintoorderobtainassurance,
in whatiniswhat isamatterofourcompetence,about
whethertheindicators
includedintheReportidentified
ina matter of our competence, about whether the indicators included in the Report identified
in
item
1
and
referenced
with
“✓”
have
been
prepared,
in
all
their
significant
aspects,initem 1 and referenced with “✓” have been prepared, in all their significant aspects, inaccordance
with
GRI Standards
guidelines.
Likewise,in accordancewithstandards,
these standards,aaccordancewith GRI
Standards
guidelines.
Likewise,in accordancewith thesealimitedassuranceengagement
providesless
assurancethanareasonableassurance
limited assurance engagement provides less assurance than a reasonable assurance
engagement,
due to differencesin andnatureand oflengthof proceduresby the auditor
toengagement,
due to differencesin nature
lengthprocedures
appliedappliedby the auditor
togatherevidencethatallows
him
to
issue
his
conclusion.
gather evidence that allows him to issue his conclusion.

Es miembro de Ernst & Young Global Limited
Es miembro de Ernst & Young Global Limited

60

Allkem Sustainability Report 2022

Pistrelli, Henry Martin y Asociados S.R.L.
25 de mayo 487 - C1002ABI
Buenos Aires, Argentina

Tel: (54-11) 4318-1600/4311-6644
Fax: (54-11) 4510-2220
ey.comINDEPENDENT CERTIFIED PUBLIC ACCOUNTANT’S LIMITED ASSURANCE REPORT
Consequently, our work included the review, on a selective basis, of the evidence obtained
regarding compliance by the Company with the guidelines of the GRI Standards mentioned
To the Directors ofin item 1 and the application of other procedures that we consider necessary in accordance
ALLKEM
with the LIMITED
circumstances. We believe that the evidence we have obtained provides anappropriate basis for our conclusion.

The1-procedures
mentionedin the previous paragraph have been applied to the records andEngagement
purposedocumentation provided to us by the Company. Our task was based on the fact that the
information
providedaccurate,bycomplete,legitimate
andCompany”)
free from fraud
andaotherillegal
We havebeenisengaged
Allkem Limited(“theto issuelimitedassurance
acts, forreportwhichover
we haveconsidereditsappearance
andformalstructure.
certain indicators contained in the Sustainability Report 2022 (“the Report”),
referenced with “✓”, for the year ended June 30th 2022, that have been prepared in line withthe guidelines set by the Global Reporting Initiative (GRI) in the GRI Standards.
5- Conclusion
Based
the work
performed
and described in item 4, nothing has come to our attention that
2- on
Board
of Directors’
responsibility
causes us to believe that the GRI indicators included in the Report mentioned in item 1 andreferenced“✓” are Board
not prepared,in all material
aspects, in accordancewith theThe withCompany’s
is responsible
for the preparationand presentationof Global
the Report inReporting
Initiative’s
GRI
Standards
guidelines.
accordance with GRI Standards. This responsibility includes defining the bases and criteria
for the preparation of the Report as well as defining, adapting and maintaining themanagement systems and internal controls from which the information is obtained.
Buenos Aires City,
2022 Accountant’s responsibility
November34th, Public
Our responsibility is to express a limited assurance conclusion on the GRI Standards
indicators mentioned in item 1 and included in the Report, based on our assurance
engagement.
PISTRELLI, HENRY MARTIN Y ASOCIADOS S.R.L.
C.P.C.E.C.A.B.A. Vol. 1 – Fo. 13

4- Professional work
Our professional work was conducted in accordance with standards for other assurance
engagements laid down in section V.A., second
part ofA.Technical
Resolution No. 37 issued
GUSTAVOKURGANSKY
by the Argentine Federation of Professional Councils of
Economic
Sciences(“RT 37”), which
Partneris based on the international standard ISAE
3000
establishedbytheInternational
Federation
Certified Public Accountant U.B.A.
of Accountants. These standards requirethat
wecomplywithethicalrequirements,
as well
C.P.C.E.C.A.B.A. Vol. 309 – Fo. 176
as that we plan and execute the assignment in order to obtain limited assurance, in what isa matter of our competence, about whether the indicators included in the Report identified initem 1 and referenced with “✓” have been prepared, in all their significant aspects, inaccordance with GRI Standards guidelines. Likewise, in accordance with these standards, alimited assurance engagement provides less assurance than a reasonable assurance
engagement, due to differences in nature and length of procedures applied by the auditor togather evidence that allows him to issue his conclusion.

Es miembro de Ernst & Young Global Limited
Es miembro de Ernst & Young Global Limited

Allkem Sustainability Report 2022

61

Appendix

62

Forward Looking Statements

Competent Person Statements

Forward-looking statements are based on current
expectations and beliefs and, by their nature, are subject toa number of known and unknown risks and uncertainties
that could cause the actual results, performances andachievements to differ materially from any expected future
results, performances or achievements expressed or
implied by such forward-looking statements, including
but not limited to, the risk of further changes ingovernment regulations, policies or legislation; the risks
associated with the continued implementation of themerger between the Company and Galaxy Resources Ltd,risks that further funding may be required, but unavailable,
for the ongoing development of the Company’s projects;
fluctuations or decreases in commodity prices; uncertainty
in the estimation, economic viability, recoverability andprocessing of mineral resources; risks associated with
development of the Company Projects; unexpected
capital or operating cost increases; uncertainty of meeting
anticipated program milestones at the Company’s
Projects; risks associated with investment in publicly
listed companies, such as the Company; and risks
associated with general economic conditions. Subject
to any continuing obligation under applicable law or
relevant listing rules of the ASX, the Company disclaims
any obligation or undertaking to disseminate any updates
or revisions to any forward-looking statements in thisRelease to reflect any change in expectations in relation
to any forward-looking statements or any change in
events, conditions or circumstances on which any suchstatements are based. Nothing in this Release shall under
any circumstances (including by reason of this Releaseremaining available and not being superseded or replacedby any other Release or publication with respect to thesubject matter of this Release), create an implication that
there has been no change in the affairs of the Company
since the date of this Release.

OlarozAllkem Sustainability Report 2022

Any information in this announcement that relates to
Olaroz Project Mineral Resources is extracted from thereport entitled Olaroz resource upgraded 2.5x to 16.2
million tonnes LCE released on 4 April 2022 which isavailable to view on www.allkem.co and www.asx.com.au.
The Company confirms that it is not aware of any new
information or data that materially affects the information
included in the original market announcements andthat all material assumptions and technical parameters
underpinning the Mineral Resources estimates in therelevant market announcement continue to apply andhave not materially changed. The Company confirms thatthe form and context in which the Competent Person’s
findings are presented have not been materially modified
from the original market announcement.
Any information in this announcement relating to Olaroz
scientific or technical information, production targets orforecast financial information derived from a production
target is extracted from the ASX Announcement entitledentitled Olaroz resource upgraded 2.5x to 16.1 million
tonnes LCE released on 4 April 2022 which is available
to view on www.allkem.co and www.asx.com.au.
The Company confirms that all the material assumptions
underpinning the scientific or technical information,
production targets or the forecast financial information
derived from a production target in the original
market announcement continue to apply and have notmaterially changed.

Cauchari
Any information in this release that relates to
Cauchari Project Mineral Resources and Ore Reserves
is extracted from the release entitled “Cauchari JORC
Resource increases to 4.8 million tonnes Measured +Indicated and 1.5 million tonnes Inferred LCE” releasedon 7 March 2019 which is available to view on
www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information ordata that materially affects the information included in
the original market announcements and that all material
assumptions and technical parameters underpinning
the Mineral Resource and Ore Reserve estimates in therelevant market announcement continue to apply andhave not materially changed. The Company confirms thatthe form and context in which the Competent Person’s
findings are presented have not been materially modified
from the original market announcement.

Sal de Vida

James BayAny information in this announcement that relates to
Sal de Vida Project Exploration Results, Mineral Resources& Ore Reserves is extracted from the report entitled
Sal de Vida capacity increased to 45ktpa in two stages
released on 4 April 2022 which is available to view on
www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information ordata that materially affects the information included in
the original market announcements and that all material
assumptions and technical parameters underpinning
the Mineral Resources and Ore Reserves estimates in therelevant market announcement continue to apply andhave not materially changed. The Company confirms thatthe form and context in which the Competent Person’s
findings are presented have not been materially modified
from the original market announcement.

Any information in this announcement that relates
to James Bay Mineral Resources & Ore Reserves is
extracted from the report entitled James Bay Lithium
Project Feasibility Study & Maiden Ore Reserve releasedon 21 December 2021 which is available to view on
www.allkem.co and www.asx.com.au. The Company
confirms that it is not aware of any new information ordata that materially affects the information included in
the original market announcements and that all material
assumptions and technical parameters underpinning
the Mineral Resources and Ore Reserves estimates in therelevant market announcement continue to apply andhave not materially changed. The Company confirms thatthe form and context in which the Competent Person’s
findings are presented have not been materially modified
from the original market announcement.

Any information in this announcement relating to Sal deVida scientific or technical information, production targets
or forecast financial information derived from a production
target is extracted from the ASX Announcement entitled
Sal de Vida capacity increased to 45ktpa in two stages
released on 4 April 2022 which is available to view on
www.allkem.co and www.asx.com.au. The Company
confirms that all the material assumptions underpinning
the scientific or technical information, production targets
or the forecast financial information derived from a
production target in the original market announcement
continue to apply and have not materially changed.

Any information in this announcement relating toJames Bay scientific or technical information, production
targets or forecast financial information derived
from a production target is extracted from the ASX
Announcement entitled James Bay Lithium Project
Feasibility Study & Maiden Ore Reserve released on
21 December 2021 which is available to view on
www.allkem.co and www.asx.com.au. The Company
confirms that all the material assumptions underpinning
the scientific or technical information, production targets
or the forecast financial information derived from a
production target in the original market announcement
continue to apply and have not materially changed.

Mt Cattlin
Any information in this announcement that relates to
Mt Cattlin’s Mineral Resources and Reserves is extracted
from the report entitled Mt Cattlin Resource, Reserve
and Operations Update released on 25 August 2022 whichis available to view on www.allkem.co andwww.asx.com.au. The Company confirms that it is notaware of any new information or data that materiallyaffects the information included in the original market
announcements and that all material assumptions andtechnical parameters underpinning the Mineral Resources
estimates in the relevant market announcement
continue to apply and have not materially changed.
The Company confirms that the form and context inwhich the Competent Person’s findings are presented
have not been materially modified from the original
market announcement.

Allkem Sustainability Report 2022

63

allkem.co