Sustainability Report 2021

Market Opportunities As the global economy tackles the challenges of climate change, new markets are expected to evolve, including improved electricity transmission, energy storage and electric vehicle products. Decreasing costs and shifting consumer preferences may accelerate the growth of these markets, presenting strong opportunities for IGO to diversify end-markets for our nickel, copper, cobalt and other high-value commodities. Nickel is positioned to benefit from the transition to energy storage and electric vehicles, especially from nickel-dominant, lithium-ion battery uptake in electric vehicles. Approximately 75% of IGO’s nickel concentrate is processed for use in downstream battery products. We also completed a pre-feasibility study on converting nickel sulphide concentrate from Nova into high quality nickel sulphate via The IGO Process™. Due to the commercially strong new offtake agreements and current life-of-mine, the decision was taken not to progress to a more detailed feasibility study at this time. However, IGO continues to pursue development opportunities via potential partnerships and collaborations leveraging off the technology developed. Under the terms of the new agreements, IGO has preserved a right to redirect our nickel concentrate (subject to agreed conditions) such that we may take a participating interest in a future downstream processing facility aligned to the production of battery materials. Risks – Short, medium and long-term There has been considerable strengthening of the market supported by both Government incentives and the electric vehicle penetration rates continuing to grow. The largest risks leading to some market uncertainty is related to geopolitical tensions. There is also some risk associated with battery technology changes and potential technologies associated with unlocking battery grade class 1 nickel from laterites. There is a consistent shift towards higher nickel density batteries to drive increases in energy density. Given the capital investment by the world’s largest battery producers and OEMs it is not expected that battery chemistry technologies will change significantly for the next +10 years. The latest research supports nickel supply deficits. Technology Opportunities Advancements in nickel-dominant battery technologies present upside potential for IGO’s sales of nickel products as well as other targeted commodities. Operationally, integration of innovative energy- efficient and renewable technologies in our current and future operated mines provides the opportunity to minimise operating costs and maximise profit margins. Options to expand into downstream processing of our nickel concentrates using green technologies also provide strong opportunities for a low-cost, market-differentiated product. IGO closely monitors market trends to maintain a well-informed view on target commodities for the business. This draws on internal and external analysis (including publications by the FBI CRC, Investment bank research and other research bodies) to ensure that our business strategies remain aligned with the latest technological developments, consumer behaviours and other relevant drivers. Risks – Short-term Integration of new technologies on our existing operations carry some execution risk, particularly in underground fleet operations. We have an innovative culture that proactively applies new technologies and processes to leverage our business potential and enable the discovery of new resources. This is demonstrated in the construction of the solar farm at the Nova Operation, and our investigation of numerous ways to introduce electrification at Nova, including the four projects we identified and disclosed on page 61. We continue to explore new technologies and have the appropriate change management controls in place to mitigate adoption of these new technologies. IGO SUSTAINABILITY REPORT 2021— 67