CMC Responsible Sourcing Policy

1. Introduction

CMC Critical Minerals Corporation (CMC) is committed to conducting its operations in a socially and environmentally responsible manner. This Responsible Sourcing Policy outlines our commitment to sourcing raw materials, minerals and materials sustainably, promoting human rights, protecting the environment, and supporting local communities. We recognize the importance of transparency, ethical practices, and collaboration to ensure that our sourcing activities contribute to positive social and environmental outcomes. For more information, also see our Supplier Code of Conduct and Risk Management Policy. Our Responsible Sourcing Policy, Supplier Code of Conduct and Risk Management Policy are based on, amongst others, the guidelines of the Supply Chain Due Diligence Act (LkSG), the principles of the UN Global Compact and the process stages of the OECD Due Diligence guidance.

2. Ethical Sourcing Practices

2.1. Human Rights and Labor Standards

We are dedicated to upholding fundamental human rights and fair labor practices throughout our supply chain. We ensure that all our suppliers and partners adhere to international labor standards, including the prohibition of child labor, forced labor, and discrimination.

2.2. Health and Safety

We prioritize the health and safety of all workers, including those of our suppliers and partners. We require compliance with stringent safety standards to prevent accidents, injuries, and occupational illnesses.

2.3. Conflict Minerals

We are committed to avoiding the use of raw materials and minerals sourced from conflict-affected and high-risk areas. We conduct due diligence to trace the origin of the material and ensure that they do not contribute to conflicts or human rights abuses.

3. Environmental Stewardship

3.1. Environmental Impact Assessment

Before engaging with any supplier, we require a environmental impact assessment to identify potential environmental risks and develop mitigation strategies.

3.2. Ecosystem Conservation

We actively work to minimize our impact on ecosystems and biodiversity. We support initiatives to conserve and restore local habitats affected by our operations.

3.3. Resource Efficiency

We encourage suppliers to adopt resource-efficient practices that reduce waste generation, energy consumption, and water usage during the extraction and transportation of materials.

4. Community Engagement

4.1. Stakeholder Consultation

We engage with local communities, indigenous groups, and other stakeholders to understand their concerns and needs. We consider their input in decision-making processes that may affect their well-being and traditional territories.

4.2. Social Benefits

We seek to generate positive social impacts in the regions where we operate. This includes providing employment opportunities, skills training, and community development projects that enhance the quality of life for local residents.

5. Transparency and Traceability

5.1. Supply Chain Transparency

We promote transparency throughout our supply chain by disclosing information about our sourcing practices and sharing relevant data with stakeholders.

5.2. Traceability

We strive to achieve full traceability of our supply chain, ensuring that the origin and journey of minerals and materials can be verified.

6. Continuous Improvement

6.1. Regular Assessment

We regularly assess the effectiveness of our responsible sourcing practices and make necessary adjustments to align with industry best practices and emerging standards.

6.2. Innovation

We invest in research and innovation to explore new technologies and approaches that enhance the sustainability of our sourcing activities.

7. Compliance and Accountability

7.1. Compliance

All CMC’s subsidiaries, employees, contractors, suppliers, and partners are expected to comply with this Responsible Sourcing Policy and all relevant laws, regulations, and international standards.

7.2. Accountability

We hold ourselves accountable for the implementation of this policy and the continuous improvement of our responsible sourcing practices.

8. Communication

8.1. Stakeholder Engagement

We actively engage with stakeholders to communicate our commitment to responsible sourcing and share progress updates.

8.2. Transparency

We report on our responsible sourcing efforts in a transparent and accurate manner, sharing successes, challenges, and areas for improvement.

9. Conclusion

This Responsible Sourcing Policy reflects CMC’s commitment to sourcing minerals and materials in a way that respects human rights, supports environmental stewardship, engages with communities, and upholds the highest ethical standards. By adhering to this policy, we contribute to the sustainable development of our industry, local economies, and ecosystems.