Labrador Iron Ore Royalty Corporation (“LIORC”) is an investment company, whose investments all relate to Iron Ore Company of Canada (“IOC”) and consist of a 15.1% equity interest in IOC, and a 7% gross overriding royalty and a 10 cent per tonne commission on all iron ore products produced, sold and shipped by IOC. LIORC does not control or operate IOC. However, LIORC is indirectly exposed to environmental, social and other risks arising from IOC’s operations.
LIORC is committed to the protection of life, health and the environment for present and future generations. LIORC has an Environment and Sustainability Policy which sets out LIORC’s commitments with respect to the environment and sustainability related to its small direct impact on the environment through its one office and staff of four executive officers. The policy also sets out LIORC’s due diligence and oversight of its IOC investments with respect to environmental and social risks.
Investments in IOC
IOC is controlled and operated by Rio Tinto PLC, one of the largest diversified mining operators in the world. As a subsidiary of Rio Tinto, IOC follows all applicable Rio Tinto environment and sustainability policies and procedures. Rio Tinto’s approach to sustainability and its sustainability reporting, including with respect to climate change, can be found on Rio Tinto’s website.
Specifically, IOC’s commitment to health, safety, environment and communities is fundamental to how it does business, and is guided by its five values of: safety, respect, integrity, teamwork and excellence. Information on IOC’s commitment to health, safety, environment and communities can be found on its website.
With respect to IOC’s environmental management, IOC looks at the entire mining life cycle and works to reduce impacts across the following four key areas: Progressive Rehabilitation and Restoration of mine sites; Water Management; Emissions Management; and Land Management.
IOC has a long-term tailings management plan and has developed wetlands on the existing tailings landform. Specific information on IOC’s tailings facilities can be found on Rio Tinto’s website. Please see Rio Tinto's Tailings Policy, Managed and non-managed tailings storage facilities report and Management of Tailings and Water Storage Standard.
Regarding greenhouse gas emissions, IOC’s pellets are high quality with a clean chemistry which helps to lower the carbon footprint of steelmakers compared to lower quality grades and forms of iron ore, when used in the iron and steel industry. IOC continues to work with government and internal experts to save energy, increase efficiency and reduce its carbon footprint.
Information on Rio Tinto's climate change strategy including its commitments, approach, impacts, governance and performance against climate change priorities as well as information on IOC's greenhouse gas emissions, can be found on Rio Tinto's website. Please see Rio Tinto's Climate Change Report 2020.
IOC’s annual sustainable development report captures its progress to date, its greenhouse gas performance and targets and its contributions to the future sustainability of the communities where it operates. As part of the Rio Tinto group, IOC is committed to reduce its total GHG emissions by 15% and its GHG emission intensity by 30% by 2030 as compared to 2018 levels. This commitment is one of the most ambitious in the Mining sector and will require a daily engagement of all IOC employees, from Mine to Port. To achieve these targets, a long term decarbonisation roadmap has been developed, combining incremental actions (energy efficiency) and the implementation of step-change technologies.
IOC undertakes a number of initiates to monitor and report on its sustainability progress. IOC is a member of the Mining Association of Canada and continuously meets the requirements of its Toward Sustainable Mining program, which provides a set of guiding principles that allow it to track and improve its social and environmental performance year-on-year.
IOC is also a member of the Green Marine program, which provides a framework known throughout North America that allows sea transport companies to measure, and reduce, their environmental impacts across key aspects of marine environmental management.