Ionic Rare Earths Ltd (ASX:IXR, OTC:IXRRF) has secured an overall environmental, social, and governance (ESG) rating of ‘BB’ from Digbee ESG for its corporate and development activities surrounding the Makuutu Rare Earth Project in Uganda.
Makuutu is being developed by IXR’s 51%-owned Ugandan subsidiary, Rwenzori Rare Metals Limited (RRM).
“Our commitment to a transparent ESG strategy, reporting and continuous improvement program is exemplified by our partnership with Digbee ESG,” Ionic Rare Earths managing director Tim Harrison said.
“Now that the independent team of experts from Digbee ESG have identified IonicRE’s baseline credentials we will now incorporate all their recommendations in order to assist in improving our environmental, social and governance programs, which will remain a key focus in the development of our assets, and in upholding the highest levels of business ethics.”
Digbee ESG is considered one of the mining sector’s leading independent assessment platforms for ESG disclosure, endorsed by top global financiers and commissioned by a wide variety of mining companies wishing to improve ESG credentials.
“The board and staff of IonicRE and subsidiary company Rwenzori Rare Metals are pleased with our maiden overall ESG award of 'BB' and acknowledge that this range provides some near-term opportunities for improvement,” Harrison continued.
“As the improvements are embedded in our current operations, we look forward to preparing our next submission and demonstrating improvement as we advance Makuutu towards development and operations.”
Digbee ESG rating
The Digbee platform provides ESG scores based on several factors, including environmental impacts, resettlement and community engagement strategies, grievance and communication processes, and the company’s overarching ESG strategy.
IXR achieved ratings between C and AA, for an average of BB.
"All companies have the opportunity to demonstrate a positive ESG journey,” Digbee ESG founder and CEO Jamie Strauss said.
“The commitment by IonicRE's management to embrace transparency and build a sustainable project was emphasised time and again during the company's submission.
“Rare earth metals are a critical material required for the global energy transition and the Makuutu project is well located to take advantage of a number of sustainable benefits, such as hydropower.
“A number of important areas of remediation have been identified but I have no doubt the commitment of this management to address these over subsequent periods will be proven."
Committing to continuous improvement
“The circular economy of rare earths will become increasingly more important over years to come,” Harrison continued.
“Demonstrating sustainable business practices and a commitment to ESG transparency and reporting of our activities will create value for our stakeholders and positively impact the social development programs in Uganda, while in turn empowering industries to develop carbon neutral applications.
“The board and management of IonicRE, plus our subsidiary companies Rwenzori Rare Metals and Ionic Technologies, accepts the scientific notion of climate change.
“It is the result of human activity, and that the activities associated with rare earths mining, refining and technological innovation of magnet recycling can contribute to rising temperatures through greenhouse gas (GHG) emissions.
“In the coming months we look forward to releasing our ESG strategy and reporting aspirations as we look to embed the improvements outlined in our maiden Digbee report and embark on our Communication of Progress to the United Nations Global Compact.
“IonicRE’s next submission to Digbee for review by the global panel of independent ESG experts is September 2023.”
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