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 355 square feet of office space shared by its three employees and the Chair of the Board. All four individuals engage in flexible work arrangements and regularly work from home. 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.
IOC is committed to becoming a premier mining organization in North America. Specifically, IOC’s commitment to health, safety, environment and communities is fundamental to how it does business, and is guided by the values of: care, courage and curiosity. 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 can be found on Rio Tinto's website. Please see Rio Tinto's Climate Change Report 2021.
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. In 2020, IOC created 981,339 tonnes of CO2e of greenhouse gas emissions (Scope 1 and 2). In October, 2021 Rio Tinto unveiled a longer term strategy that set a new target for its subsidiaries, including IOC, to reduce its Scope 1 and 2 carbon emissions by 50% by 2030, more than tripling its previous target, and is bringing forward its 15% reduction in emissions to 2025 (previously 2030). Rio Tinto is focussed on developing technologies such as hydrogen or plasma torches which can use renewable energy to potentially replace fossil fuels for heat and steam. Four plasma torches were ordered in 2021 for a trial at IOC’s pellet plant.
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. This framework also allows IOC to benchmark its performance against other organizations in the mining sector in the areas of: Energy and Greenhouse Gas Management, Tailings Management, Safety and Health and Biodiversity.
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.