Social & Economic Partnership

We are committed to open and full disclosure of our economic contributions in all countries in which we do business.

In 2023, Centamin’s direct economic contributions totalled US$983 million, which included: US$463 million in operating costs; US$63 million in employee wages and benefits; US$204 million in capital expenditure; US$141 million in profit share, royalties, taxes and other payments to government; and US$0.8 million in community investments. Of the total economic value distributed, 98% was attributed to Sukari in Egypt, with the remaining 2% to exploration and development activities in Egypt and Côte d’Ivoire.

Under the terms of the Sukari Concession Agreement (Egyptian law 222 of 1994) all profit share payments are made to the Egyptian Mineral Resource Authority (“EMRA”), a department of the Ministry of Petroleum and Mineral Resources. Since 1 July 2020, the profit share mechanism has been made to EMRA on a 50:50 basis and will remain at this level for the remainder of the tenure.

From exploration to mine operation, Centamin procures a diverse range of goods and services that contribute to the economic and social prosperity of our host countries through industrialisation, infrastructure and innovation.

Approximately 97% of our Group-level cash operating costs is at Sukari, where the main types of procurement by value are fuel and oil, contractors, general consumables and reagents. Of the approximately 1800 active suppliers at Sukari in 2023, the majority by number (55%) and by value (80%) are located in Egypt, followed by Europe (10%).

The principal goods and services we source internationally include: reagents (cyanide, flotation reagents); other consumables (forged grinding media and accessories); Original Equipment Manufacturer (“OEM”) plant and spares (power generation, other fixed and mobile equipment); communications hardware and software.

In sourcing goods and services, preference is given to local businesses, provided they meet the minimum safety, quality, ethical and cost requirements. Under the Sukari Concession Agreement, the Company applies rigorous procedures to maximise the opportunity for local sourcing.International procurement is only sought when local suppliers are unable to meet requirements for quality and performance, or the international price is less than 10% of that offered by local suppliers.

As the only large-scale modern mine in Egypt, Sukari has pioneered the development of a national mine supply chain, which continues to grow, diversify and mature with each successive year of operation.

Centamin’s Code of Conduct affirms our commitment to uphold high moral and ethical principles and specifies the basic norms of behaviour for employees and others conducting business on our behalf.

We expect our suppliers to apply standards to the same level as our own, or higher, in a manner that is appropriate and proportional to the nature and scale of their activities, the goods they supply and the services they perform. We are committed to using only those suppliers that adhere to the same fundamental principles relating to legal compliance, fairness, honesty and anti-corruption.

As a condition of doing business with Centamin, our suppliers are required to comply with applicable laws and meet the commitments and obligations under our Group policy framework, including:

Anti-bribery and corruption

Human rights

Health, safety, environment and social responsibility

These requirements are stated in our standard terms and conditions of contract for suppliers of goods and services, to which is appended our Supplier Code of Conduct.

We have assurance processes in place to verify that our suppliers meet our standards. We reserve the right to undertake due diligence to verify compliance to our Supplier Code of Conduct. If a reasonable risk of noncompliance is identified, we may suspend transacting business or terminate business relationships with a supplier.

At Sukari, we maintain a Conflicts of Interest Policy that covers avoidance and management of conflicts of interest that may arise between our employees and business activities. Our employees are required to annually review and declare any potential or perceived conflicts; it being their responsibility to act in the best interest of the Company.

To obtain and maintain a robust licence to operate during all phases of the mine cycle, we build relationships based on trust and mutual respect with our stakeholders.

The strength of these relationships is underpinned by:

• Engagement – proactively engage stakeholders based on inclusion, transparency and integrity
• Risk and impact management – integrate stakeholder considerations into managing risks to develop longterm, positive cumulative impacts
• Mutual value creation – collaborate to catalyse socio-economic development so communities can prosper during operations and after mining activities cease.

Strong lines of communication are maintained with our host communities to understand each their needs and identify opportunities for long-term mutually beneficial outcomes.

The Sukari licence area covers an arid and mountainous landscape in which there is no human settlement and no known indigenous territory. Development of the mine has not resulted in physical or economic resettlement and there is no grievance or dispute between the Company and communities relating to land use or customary rights. There are a small number of Bedouin families who live outside but adjacent to the licence area with whom the Company maintains good relations.

A Community Consultation Committee, comprising Bedouin elders and community leaders, manages engagement between Marsa Alam and Sukari. Monthly meetings are held with the committee to discuss matters ranging from local recruitment, local procurement of goods and services, community investment and grievances. Meetings are also held routinely with regional and local government authorities, public service providers and community-based organisations and vulnerable groups.

At Sukari we conduct an annual community perceptions survey to assess the strength of our relationship, the effectiveness of our consultation practices and the value created through our community investment programme.

At all our sites, we have in place community feedback and grievance mechanisms, which help us to anticipate, understand and mitigate our impacts on communities. In 2023, we recorded no reportable social incidents, disputes, nor delays to our activities resulting from community disturbance, nor allegations of misconduct through our whistleblower hotline.

We engage with communities to identify social, economic and environmental priorities and to define mutually desired outcomes and opportunities as aligned with our purpose.

Through community investment we aim to provide a framework that addresses challenges and catalyses long-term socio-economic development in our host communities. To do so, we must strengthen the institutions that support local economies, and build the skills and capabilities that diversify economic activity. Where possible, we seek to leverage other development resources and sources of funding available through partnership with other bodies.

We start community investment at early stage exploration, from where the level of investment is scaled-up over time commensurate with the stage of asset development. Overall, we target levels of investment equivalent to 1% of our underlying earnings.

We recognise the need to undertake certain investment initiatives on a larger, regional scale, to achieve measurable social change and establish diversified and resilient regional economies. We also appreciate the need to develop and implement these initiatives in collaboration with other regional stakeholders. Under this strategy we will target women to benefit from at least 50% of our investment funding.

At Sukari, a Community Consultation Committee composed of cross-functional leaders, support the governance of our community investment programme to ensure the most effective opportunities are prioritised and implemented.