Pre-Feasibility Study - Environmental & Social

The proposed Veovaca and Rupice mines and processing facilities are currently undertaking both local environmental permitting and working towards adherence to the EBRD Performance Requirements (2019) and other international standards (Equator Principles). The Veovaca Project has obtained the required environmental permits and at Rupice, a public hearing for the environmental assessment was carried out in August 2020, which is a precursor to the grant of the license.

Environmental Scoping was carried out in Q3 and Q4 2019 and baseline studies for an ESIA were commenced in May 2020, utilizing local consultants and contractors where possible. Studies are being undertaken regarding air quality, noise, soils, biodiversity, hydrology, hydrogeology, geochemistry, landscape and visual impact assessment, social aspects, traffic, and archaeology and cultural heritage, across the defined Project area of influence. To ensure data is seasonally representative, especially for water studies, air quality and biodiversity, the baseline programme will continue until the end of April 2021.

The proximity of the plant site to residential dwellings in Tisovci led to early stage noise modelling. Results showed that noise emissions would be above the maximum allowance under local and international requirements. Several design aspects were adjusted to assist in reducing noise levels, including the movement of the crusher to Rupice, and the mapping of routes taken by mobile equipment. A second phase of noise modelling includes additional acoustic cladding to the mill building and a 5.2m noise barrier (2 containers high) around the north western and northern edges of the plant site; with this mitigation in place it is anticipated that noise levels will be within acceptable limits, based on the current Project design.

Stakeholder engagement and consultation has occurred both as part of baseline collection and for information dissemination. The Information Centre was established in Vares in 2019 and acts as a central point for local stakeholders to obtain information and raise concerns or questions with Eastern Mining. A Stakeholder Engagement Plan was developed and is in the process of being implemented for the project. A Public Liaison Committee was established during 2020 and now meets quarterly; members are representative of all local communities in the region, as well as of local government, business owners and religious groups.

During baseline data collection it is evident that the local communities are supportive of the Project and the associated anticipated economic opportunities that it may bring.

Environmental and Social aspects are managed on-site by a dedicated team based at Tisovci, the manager of which reports directly to the Managing Director & CEO. A framework Environmental and Social Policy is to be developed at the corporate level, providing guidance and an umbrella for an environmental and social management system and all other environmental and social policies, plans and procedures to sit under. The Board of Adriatic has established an Environmental Social & Governance committee to oversee and advise on policy implementation. Governance policy aspects will also be addressed at the corporate level and will apply to all subsidiary companies. Some progress has been made regarding these policies, and this will be a focus in the period leading up to and during the Feasibility Study.