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Firstly, we would like to clarify that the POSCO mentioned on page 24 of the map in the Mighty Earth report is POSCO Future M, a secondary battery material company of the POSCO Group, which does not directly purchase nickel produced in the IMIP and IWIP regions in Indonesia. However, POSCO Future M sources precursor materials containing nickel through three Chinese companies (Jiana, CNGR, Huayou), known to procure nickel from the IMIP and IWIP regions.

...POSCO Future M actively manages its supply chain based on a mineral purchasing policy that integrates considerations for environmental and human rights. This includes embedding clauses related to human rights protection, responsible minerals, and ethical standards, conducting supplier audits to verify ESG checklists, and annual ESG verifications focusing on environmental, labor/human rights, ethics, and management systems to identify key ESG risks and formulate improvement plans. POSCO Future M has requested the ESG management status of those suppliers, who providing precursor materials and is committed to enhancing supply chain management to address ESG issues across secondary and tertiary supply lines.

Second, regarding the refinery on page 28 in the Mighty Earth report it is stated that it will produce 50,000 MT of nickel matte and is owned by POSCO. However, it is imperative to note that POSCO Holdings holds a minority stake in that nickel smelting project at IWIP is currently under construction, without involvement in the mining operations or broader development and operation of IWIP.

We have consistently required the majority shareholder to adhere to industry best practices, particularly in the areas of social and environmental responsibility and been regularly monitoring activities of the smelting plant. The concerns raised in the Mighty Earth report in May 2024 have been also communicated to the majority shareholder of the plant and ESG compliance management has been strongly requested again.

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