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	2020	2019	Industry Average
GHG Emissions Intensity¹	0.50	0.59	0.80

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 and its Kumtor Mine in the Kyrgyz Republic rely predominantly on renewable power for their electricity, which allows the Company to offset its GHG emissions. The province of British Columbia generates close to 95% of its electricity from renewables.² The Kyrgyz Republic, a leading producer and exporter of hydroelectric energy in the Central Asian region, generates more than 85% of its electricity through hydropower. In Turkey, our Öksüt Mine uses wind energy as part of its total electricity mix. In 2020, 40% of all energy consumption across all operating mines came in the form of electricity.

In 2019, we launched two electrification projects at Mount Milligan, one of which replaced the use of diesel generators that powered the withdrawal and conveyance of water from Philip Lake to Mount Milligan’s tailings storage facility (TSF). The electrification project for Philip Lake decreases local air pollutants at the mine and is expected to reduce carbon dioxide emissions by roughly 48,000 tonnes over the next decade. This is roughly equivalent to removing 17,000 cars from the road for a year. In 2020, construction of the powerline was completed for both the Philip Lake and Lower Rainbow Valley water pumping infrastructures. Our Lower Rainbow Valley Well Field Electrification Project in British Columbia will be able to reduce annual operating costs by over C $1,000,000 and reduce GHG emissions by ~23,000 tonnes by 2028.

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FIVE-Year Global GHG Emissions Summary³

Note: No data for 2015.

Year	Scope 1	Scope 2
2020	367443	43720
2019	442674	29580
2018	433038	30387
2017	387346	31627
2016	396032	27708

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.

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.

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.

2020 Global Scope 1 and Scope 2 GHG Emissions

Tonnes CO₂e	Scope 1	Scope 2	Total	Percentage of Total
Kumtor	269,160	14,712	283,873	69%
Mount Milligan	66,580	23,867	90,447	22%
Öksüt	31,737	5,141	36,878	9%
Total	367,477	43,721	411,198	100%
%	89%	11%	100%