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Investor Presentaiton

64 64 WATER MANAGEMENT In our manufacturing unit, 90% or more of all water used comes from reuse. This is possible because the ovens' cooling system was made in a closed circuit. In this way, the same water circulates and returns to the cooling tanks. MINASLIGAS FORESTS Minasligas owns 14 farms totaling more than 50,000 hectares and whose main activity is eucalyptus forestry. Our forestry project (available forests) currently has more than 27,000 hectares, including areas of planted forests and unplanted areas (fallow). More than 22,000 hectares are areas of native vegetation of the Cerrado of Minas Gerais, including protection areas, such as the Legal Reserve and Permanent Preservation Area (APP), and areas of remaining native vegetation. Currently, we have around 909,000 cubic meters of standing wood. Distribution of areas TOTAL (hectares) Total area 51,450.61 Available for project 27,262.06 Legal reserve 10,919.18 APP Improvements 3,817.04 2,013.02 +90% of reuse water 14 farms + 50 thousand hectares + 22 thousand hectares of native vegetation in the cerrado of Minas Gerais 909 thousand cubic meters of standing wood. POWER Minasligas offers products to the market developed with clean and sustainable energy, which contribute to the environment, reducing the global footprint of greenhouse gases. Minasligas is an electro-intensive company, which has electricity as the main raw material used in the production of Ferro Silicon and Silicon Metal. Obtaining a guaranteed supply of this vital input to the production process brings more security to the business and also requires our team to continuously monitor it so that consumption is efficient and responsible. The company's electricity consumption has targets for monitoring the efficiency of its use, that is, producing more with the same energy consumption. In 2021, Minasligas consumed around 1 GWh of electricity per year, with around 96% of this energy being provided by plants from renewable sources (hydroelectric, solar, wind). CARBON INVENTORY The first MINASLIGAS carbon inventory was carried out in 2021 for the Base Year 2020. Using the GHG Protocol methodology, the calculation was made considering the emissions from the factory in Pirapora and the eucalyptus cultivation activities, as well as the production of the bioreducer (charcoal) used by Minasligas. In 2022, the Base Year 2021 inventory was carried out. = Base Year 2020 The measurement resulted in 79,080 tons of CO2 equivalent, with direct Scope 1 emissions volume 67,954 ton CO2 eq and indirect Scope 2 emissions (Market Base) = 11,126 ton CO2 eq. Considering scopes 1 and 2, the result was 0.75ton CO2eq per ton of product. Base Year 2021 58,717 tons of CO2 equivalent were emitted, considering Scope 1+ Scope 2 Marked Based. The emission factor in 2021 was 0.55ton CO2 eq per ton of product. 96% renewable energy consumption In addition, Minasligas has two photovoltaic plants that supply energy to farms, the employees' club (Gremil) and the Belo Horizonte office. The main objective of Minasligas is to increasingly improve operational efficiency and that of our facilities, maximizing production indicators. This strategy, associated with making all areas aware of the "Energy" theme, aims to achieve this objective. The reduction compared to the previous year is due to operational excellence at the factory and carbonization plants, the use of charcoal as a bioreducer and electricity from renewable sources (hydraulic, wind and solar), reaching 96% of the energy consumed. For the Carbon Balance, the criteria of ISO 14064 were used. In the calculation, Scope 1 and Scope 2 Market Based emissions and removals due to Minasligas forest massifs were considered. The Carbon Balance in 2020 resulted in: -236,789 ton CO2 eq, And, in 2021, it was: - 189,934 ton CO2 eq Both results mean that MINASLIGAS removed more greenhouse gases from the atmosphere than it emitted. Others 7,400.31 189,934 ton CO2 eq removed from the atmosphere in 2021 65
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