GHG Emissions and Energy

Centerra recognizes that climate change is one of the most pressing concerns for communities, regulators, and investors and that both physical and transitional climate risks have the potential to impact our operations.

We recognize that human activity is leading to an increase in greenhouse gases (GHG), such as carbon dioxide, in the atmosphere, which is contributing to climate change. Climate impacts are being experienced across the globe, ranging from chronic shifts in wet and dry years impacting water management activities, to an increasing frequency and severity of extreme weather events.

GHG Emissions Intensity

Per tonnes CO₂e	2021	2020	2019	Industry Average
GHG Emissions Intensity¹	0.35	0.50	0.59	0.67

¹ Emissions intensity is calculated by dividing total amount of produced gold ounces by the total Scope 1 and Scope 2 emissions. The emissions intensity includes production of both gold and copper.

GHG Emissions and Energy Consumption Reduction

Centerra is committed to managing its GHG emissions. GHG emissions are predominantly caused by the use of fuel (in mobile vehicles and for stationary combustion), electricity consumption and the use of explosives at mine sites.

Centerra’s sites in British Columbia rely predominantly on renewable power for their electricity, which allows the Company to offset its GHG emissions. In 2021, 69% of the total energy consumption at Mount Milligan came from British Columbia’s grid. The province of British Columbia generates close to 95% of its electricity from renewables.² In Turkey, our Öksüt Mine uses wind energy as part of its total electricity mix.

At Mount Milligan, we annually evaluate energy-related solutions, delivery mechanisms and alternative technologies to achieve energy efficiency. In 2020, construction of a powerline was completed for both the Philip Lake and Lower Rainbow Valley water pumping infrastructure. The powerline extension to the Mount Milligan Rainbow booster pumps helped the Company save 216,000 litres of diesel

At Öksüt, our main energy management objective is to increase our energy efficiency. These efforts are led by a certified energy management specialist. At Öksüt mine, we use a Variable Frequency Drive (VFD) starting system for our pumps which helps eliminate pump starting currents and extends the pump life. Additionally, a light-emitting diode (LED) energy safe lighting system has lowered energy consumption throughout the site.

Read our story here to learn more

FIVE-Year Global GHG Emissions Summary³

Year	Scope 1	Scope 2
2021	97303	11417
2020	367443	43720
2019	442674	29580
2018	433038	30387
2017	387346	31627

² https://www.cer-rec.gc.ca/en/data-analysis/energy-commodities/electricity/report/2016-canadian-renewable-power/province/canadas-renewable-power-landscape-2016-energy-market-analysis-british-columbia.html

³ The 2019 GHG emissions included Öksüt’s emissions for the first time. In addition, to create reporting accuracy and consistency across our operating sites and new mines coming online, namely the Öksüt Mine, in 2019 we standardized our global GHG emissions reporting. This means that our GHG emissions cannot be compared; nonetheless, this chart provides an accurate trend. Data is much lower for 2021 due to removal of Kumtor emissions.

Transition to the Low-Carbon Economy

In order to achieve a lower-carbon future, there will be a substantial increase in demand for several key minerals and metals. These metals are needed to manufacture cleaner technologies, such as wind, solar and battery-powered technologies. Notably, the global requirement for metals such as copper may increase, which could favourably impact Centerra’s existing copper production from its Mount Milligan Mine.

Our strategic approach to climate change is underpinned by a belief that reducing energy use and GHG emissions is both good for business and good for the environment. In 2022 and into 2023, we will be considering targets, assessing how climate risks will play out under different future scenarios and completing a quantitative assessment of financial risks due to climate change.

Over the course of the life of a mine, Centerra implements a number of initiatives and allocates capital to reduce its energy consumption, carbon footprint and exposure to the physical impacts of climate change.

We recognize our role in the transition to a low-carbon economy. We are investing resources to better understand the role Centerra can play in this transition and how our operations must adapt to remain competitive in this changing economic and environmental landscape.

2021 Global Scope 1 and Scope 2 GHG Emissions

Tonnes CO₂e	Scope 1	Scope 2	Total	Percentage of Total
Mount Milligan	69,406	5,848	75,255	69%
Öksüt	27,896	5,569	33,465	31%
Total	97,303	11,417	107,542	100%