28 March 2024

Thank you for offering us the opportunity to comment upon your pre-publication text concerning the Environmental and Social Impact Assessment (ESIA) report that we prepared for Letpadaung project in Myanmar, in 2013. Knight Piésold Pty Limited (“KP”) both understands and sympathises with your concerns with the political and humanitarian situation in Myanmar. Before I respond in detail to the various issues you have raised it might be helpful if I took a moment to summarise KP and its business in Myanmar. Thus, while it is a fact that KP has been engaged with the Letpadaung project, its engagement has been limited to environmental and social matters and, in particular, to the preparation of the Environmental and Social Impact Assessment. As you will be aware, an ESIA predicts a project's environmental and social consequences and provides commitments to mitigate impacts and safeguard the environment and affected persons. It follows that at no time has KP been involved, directly or indirectly, in what might be described as the physical act of mining; essentially, the extraction of minerals from the earth. The scope of its appointment relates to the identification of and protection / mitigation of damage to the local environment and the citizens of Myanmar. Against that general statement, I will now seek to address the more direct issues, directly or by implication, you have raised which comprise:

i. In late 2012, KP was approached by Myanmar Wanbao Mining Company Ltd (“MWMCL”) who had been requested to commission the appointment of a reputable international consultant with particular expertise in conducting ESIA. As you will know, the Special Investigation Committee was a stand-alone organisation, set up by the then incumbent Government to review and monitor the project development.

ii. In early 2013, based upon its expertise and international reputation, KP was appointed. It is worthy of note that the appointment was endorsed by the Special Investigation Committee. At all times, KP acknowledged the need to address complex issues within a country developing its approval systems to deliver better outcomes, defined in its widest sense, the people of Myanmar and the challenges we faced in accepting that appointment. We were encouraged by the recognition of the Special Investigation Commission, then chaired by Daw Aung San Suu Kyi, that the Letpadaung mine was important to Myanmar’s future development and sustainability.

iii. KP sought to deliver an ESIA and technical advice related to environmental issues, consistent with international standards; where appropriate or necessary, with the advice and assistance of several Myanmar and expatriate experts. The ESIA was intensively reviewed and supervised by a team of industry specialists and academics, appointed by the government of Myanmar, with the intent being to deliver positive benefits to the people of Myanmar while, at all times, seeking to reduce adverse environmental consequences.

iv. For reasons of which we are unaware, at present the mine is on "care and maintenance"; it is not operational and has not been so since February 2021.

v. For the avoidance of any further confusion or misunderstanding, KP's services, in no manner are they capable of assisting the junta nor its personnel. They are exclusively environmental and social with significant safety consequences which are for the benefit, not of the junta, but the people of Myanmar. Anticipating a further question, KP has never made any payment to any junta official nor any other person associated with the mine; it has provided a statutory and environmental service.

vi. More widely, may I take a moment, also, to address the Three Pillar Framework which, as you will know, focuses upon the promotion of human rights and the elimination of business interactions that support and sustain the military junta, also promoting employee welfare and safety. KP's internal, and international protocols focus upon such principles although, as you will appreciate, not all countries where we have a presence exist under a military junta. KP has no dealings with employees but, indirectly, the core of KP's appointment addresses such matters.

vii. The military coup occurred in 2021.

As one final comment, since February 2021, the mine is closed and no longer operational.

To return to the text of your e-mail, you have invited KP to respond to "ALLEGATIONS that mining companies and investors have continued to operate in Myanmar effectively providing SUPPORT AND LEGITIMACY TO THE MILITARY". This is not the case; ti has provided only the services I have outlined above; it is not a mining company.

You add that "funds from the mining sector flows to the junta through revenue sharing, rent and tax, helping to fund its ongoing ATROCITIES". KP has received fees for the professional advice it has delivered, there have been no rebated payments to any person within the military junta nor any Politically Exposed Person.

Finally, you conclude that "KP prepared the Environmental and Social Impact Assessment (ESIA) report for a project known for serious human rights violations,...." please explain how an ESIA can be applied to constitute or support that allegation.

I do hope that this note assists you in understanding KP's role and function and, now being aware of that detail, you might temper those words you might have used in your publication.