Maintaining responsible environmental stewardship is another essential stepping-stone to our long term success. Our integrated Health, Safety and Environment (“HSE”) policy ensures that we are committed to Zero harm to our people and minimal adverse impact on the environment. At each and every stage of our operations, we strive to promote the efficient use of resources, the reduction and prevention of pollution and the enhancement of biodiversity protection. Our integrated HSE policy applies to all MMC’s subsidiaries and its contractors. In accordance with our HSE policy, we commit to:

• Identifying, assessing and managing the risks to employees, contractors, communities and environment
• Complying with national and international applicable legal and other requirements
• Ensuring that Company management at all levels are HSE role models and lead by example
• Providing relevant HSE training for employees, contractors and our host community
• Auditing our HSE management system and taking measures to rectify any gaps and
• Not tolerating re-occurrence of incidents.

The policy has strengthened leadership role of managers at all levels and states that everyone is responsible for and must be involved in implementation of the HSE policy. Currently, we have 33 regulations and procedures in place to deal with environmental and OHS issues such as regulation on waste, chemicals, spill control, incident, personal protection equipment, training and etc.,

Based on the outcome of the project’s environmental impact assessment, individual management plans are developed to minimize environmental impacts. We have the following 7 environmental management plans in place to ensure that we are accountable for our actions. These include Dust management plan, Erosion and sediment control plan, Waste management plan, Hazardous waste management plan, Tailings storage facility management plan, Mining closure and reclamation plan, and Monitoring plan.

The implementation of the management plans are reviewed annually against various indicators. Based on the outcome of the review, corrective actions are undertaken thus aiming for continual improvement. The key indicators of our environmental performance including CO2 emission measurement are annually reviewed by the Environmental, social and governance committee of the Board.

In addition to mandatory requirements, we carry out a number of environmental projects in the region. A forest belt created in Tsogttsetsii soum by the Company’s environment team covers 25 hectares and serves as a wind protection for vegetable gardening activities of the local community members. The Company is also developing a 2.5 hectares nursery field and is engaging with universities and professional institutions in cultivating trees and plants most suitable in the Gobi conditions.