Drummond Ltd.

Our 2023 Sustainability Report presents a detailed account of our environmental, social, and economic performance during the year. Prepared according to the GRI 2021 and SASB standards, this report has been externally verified by Ernst & Young and has the approval of our highest governance body and the departments responsible for each material topic.

We are Drummond Ltd., a multinational mining company headquartered in the United States. We are engaged in extracting, processing and exporting steam coal to six continents and more than 20 countries. In Colombia, we operate in the departments of Cesar and Magdalena, contributing to the economic development of the country and the region.

We extract coal at the La Loma, El Descanso and El Corozo mines in the department of Cesar. Our railroad operations, with a fleet of 44 locomotives and 1993 railcars, connect these mines with our port in Magdalena, which has an export capacity of 60 million metric tons per year.

2023 was a year of excellent financial performance - we surpassed our coal export record with a total of 27,037,622 metric tons of coal shipped overseas. Below are the figures that reflect the effectiveness of our work, in millions of Colombian pesos and millions of US dollars:

Economic performance results - Figures in millions of COP and USD

Capitalization - Figures in millions of COP and USD

In 2023, we exported 27,037,622 metric tons of coal.

Our value chain is defined at every stage by careful planning and responsible execution of our large-scale operations, prioritizing profitability and sustainability. Through exhaustive studies and constant monitoring, we ensure that we are protecting the environment, the well-being of the people we work with and the progress of the neighboring communities.

Our human talent is the backbone of what we do and a reflection of our commitment to the regions where we operate; for this reason, we have developed an organizational culture in which safety, interpersonal care, diversity and inclusion and lifelong learning are constants that allow us to advance as a team and achieve our common goals.

At the end of 2023, we had a total of 5,340 direct employees: 94% hired by the Company through indefinite contracts and the remaining 6% through fixed-term contracts. We ended the year with the support of more than 6,000 workers from our contractor and supplier companies. We note that none of our employees were hired on an hourly and/or shift basis.

Our strategy is based on producing high-quality steam coal in a competitive and efficient way, always prioritizing sustainability. We seek to generate economic value while also protecting the environment, life and the well-being of the communities where we operate. Our commitment to our sustainable value proposition is becoming a reality thanks to evaluations and concrete actions designed to reduce, mitigate and compensate for our impacts both internally and externally.

Our Board of Directors, committed to sustainability, has invested in training and educating corporate leaders to properly understand and implement international ESG standards. By doing so, we seek to integrate ESG criteria into our corporate strategy and make decisions that benefit our stakeholders and the environment. Our senior management team, together with the Vice Presidents, oversees the implementation of our sustainability policies and strategies, ensuring that they are aligned with our values and contribute to long-term sustainable development.

At Drummond Ltd., we establish standards and policies to ensure responsible and efficient business conduct using inclusive processes and systematic reviews. We assign responsibilities based on roles within the Company and encourage reflection on appropriate conduct throughout our value chain, including suppliers and contractors. We also manage risks such as money laundering and terrorist financing through specific programs.

Our company has a series of standards and guidelines (policies, codes, manuals, etc.) that establish the rules to be followed to carry out responsible business conduct. These guidelines serve to ensure that all employees, without exception, fulfill the commitments we have made as an organization to all of our stakeholders.

We reaffirm our commitment to human rights, following international and national standards. Our policy, reviewed by an external consultant, covers all stakeholders and is communicated through various channels, including Drummond Dialogues and our social media accounts. Employees, contractors and suppliers must adhere to this policy.

During the 2023 fiscal year, we maintained an impeccable record of environmental and social compliance, with no penalties or fines reported. This fact confirms our commitment to legality and corporate social responsibility.