Westshore Terminals Investment : Limited Partnership 2023 ESG Report

Westshore Terminals Limited Partnership 2023 ESG Report

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Continuing Our Journey

Operating responsibly and protecting the environment in and around Westshore Terminals ("Westshore") is a top priority for us. This means minimizing the impact of our operations by protecting the natural environment around us for future generations to enjoy. Our focus is to have a safe, respectful and inclusive workplace and be accountable to our shareholders through transparent and effective governance structures.

Westshore published our first Environmental, Social and Governance (ESG) report in 2022 and are now in our third year of reporting. We look for opportunities to progress and improve our performance.

Thank you,

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Westshore Terminals Overview

Westshore Terminals is a bulk-commodity handling faculty located in Delta, British Columbia that has been in operation for over 53 years. Westshore leases the 136-acre property from the Vancouver Fraser Port Authority (the port authority) and provides train unloading, product stockpiling, and vessel loading services.

A Vital Link for North American Commodity Exports

The company is currently the largest coal terminal on the west coast of the Americas with capacity for approximately 33 million tonnes annually, handling both steelmaking (metallurgical) and thermal coal for customers located in British Columbia, Alberta, and the Powder River Basin of Montana and Wyoming. Steelmaking coal is used in the production of steel and thermal coal is used for generating electricity.

In addition to handling coal, Westshore is constructing facilities to handle and store potash for BHP's Jansen Mine in Saskatchewan. Westshore's customer agreement extends through to 2051 and is part of a multi-billion investment. This potash project is a transformational diversification of Westshore's business to expand into the agriculture sector for the long term and enhance Westshore's environmental commitments. Potash is a naturally-occurring, critical ingredient in fertilizer, which is required for global agriculture.

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Environment

At Westshore, we recognize that as an industrial operation, we have an impact on the environment around us. As a marine terminal, our interface with the natural environment is primarily the air and water around us, and with this in mind, we have comprehensive and appropriate protections and mitigations in place that are the foundation from which we operate. Westshore regularly assesses how we can further reduce our localized impact on the environment and support the efforts of our partners, customers and suppliers to do the same.

While much of our focus is on our operations, we also recognize that the products we currently handle generate emissions with climate change impacts. Having handled coal for over fifty years, we understand there are climate impacts associated with coal consumption and there is a need to seek opportunities to adopt greater use of renewable energy resources.

At the same time, we believe these efforts must be balanced with the reality that steelmaking coal is necessary for the transition and maintenance to a lower carbon economy, and that for many countries, thermal coal is the primary and often only accessible energy source for electricity generation.

Air Quality

Air quality impacts and dust emissions from the transportation and handling of coal continue to be primary concerns for communities in closest proximity to the terminal and along the rail routes from the mines to the terminal.

Westshore has carried out a number of projects in the last 10 years to address dust emissions and has several in planning. The completed projects include:

1. Berth 1 and Berth 2 Dust Suppression System. Addition of a system that sprays anti- dusting product onto the coal conveyors during shiploading.
2. New Stacker-Reclaimers. Increase in the stacker-reclaimer boom length significantly reducing required bulldozing from pre-2016 levels.
3. New Shiploader on Berth 1. Improved design along with enclosed galleries and transfer points reduces and contains spillage directing it to Westshore's coal recovery systems.

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In addition to the projects above, our ongoing emissions reduction activities include using water trucks to keep roads and piles wet, using anti-dusting agents on roadways, and carefully monitoring weather conditions to be best prepared for adverse weather in advance.

Greenhouse Gas (GHG) Emissions

All of Westshore's main operating equipment is powered by electricity, minimizing terminal emissions.

Westshore's largest source of GHG emissions is diesel fuel used for bulldozing the product stockpiles. To reduce bulldozer use, and as part of a larger terminal improvement project, Westshore replaced three of four stacker-reclaimers, which are critical equipment required for operations. The new stacker-reclaimers have a longer reach, allowing them to access greater volumes of product with limited bulldozing.

As noted in the figure below, Westshore's GHG emissions, per tonne of coal shipped, have reduced by 39% from 2012 levels.

GHG Emissions per Tonne Shipped

Diesel Fuel Consumption

Westshore participates in the port authority's Non-Road Diesel Emission (NRDE) program. This program tracks the emissions levels of equipment operating within the Port of Vancouver and incentivizes the replacement of old generation diesel engines.

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Water Management

Westshore's water is sourced from the municipal water supply. Water is primarily used for the ground level and mast sprays in the stockyard, as keeping the coal wet significantly reduces the potential for dust on the stockpiles and roads.

As important as it is to reduce dust generation, water is a resource that we have to preserve. With that in mind Westshore uses operator inputs in combination with control systems that monitor wind direction and speed to set system operating intervals and ensure that the stockyard stays wet while at the same time minimizing water usage.

Water Usage per Tonne Shipped

Water Usage per Tonne Shipped Long Term Trend

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Surface Water Collection

Westshore uses industry-leading facilities and equipment as part of their environmental initiative: the terminal has 10 high masts; 17 high tower sprays; 2 mobile air monitoring units; and 75 nelson big gun ground level water sprays. The number of high tower sprays and nelson big gun ground level water sprays has been reduced as a result of taking one of the coal yard lines out of production for the BHP Potash Project.

All rainwater and surface runoff at Westshore is collected by a series of ditches and sumps and is treated with a settlement process to remove coal particles and other solids.

A water treatment system of sieve bins has also been built to treat the water we use on site and remove coal particles from the collected surface water.

Westshore discharges surface runoff water from the terminal through an ocean discharge system. The ocean discharge uses a combination of coagulation and flocculation to remove particulate from the water and meet Westshore's discharge permit criteria of Total Suspended Solids (TSS) levels under 50 mg/l, oil, and grease under 10 mg/l and a quarterly LC-50 bioassay test. The treated water is monitored continuously with electronic instrumentation, and weekly water samples are collected for analysis and record keeping. The system operates under the permit conditions set out by the BC Ministry of Environment and Climate Change Strategy.

Wastewater Management

Westshore operates a modern wastewater treatment plant to process sewage generated on site. The system was installed in 2015 and is subject to permit conditions and monitoring by Metro Vancouver and the BC Ministry of Environment and Climate Change Strategy.

Westshore's wastewater treatment plant operated the duration of 2023 in compliance with regulatory requirements.

Incidents

In 2023, Westshore had zero reportable events related to air, water, or wastewater management under its three main operating permits (2022 - 0).

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Noise

Westshore has a number of ongoing measures in place to reduce noise from terminal activities. Over the past five years, Westshore has completed several projects that have reduced the overall noise output.

The 2016 Berth 1 shiploader replacement is fully-enclosed and fitted with polymeric conveyor rollers to reduce noise levels. The Berth 1 and trestle conveyors were also refitted from the previous steel conveyor rollers to quieter, polymeric rollers.

The shiploader conveyor was also upgraded with a variable speed drive, which reduces noise during operation.

The three stacker-reclaimers installed 2017 to 2019 are also fitted with noise-reducing polymeric conveyor rollers. The stacker-reclaimer conveyors and surge bin feeders are fitted with variable speed drives to eliminate fluid coupling noise and allow for reduced speed when coal is not being loaded.

In addition to Westshore's activities, the port authority has three noise monitoring stations within the Tsawwassen area that monitor noise at Roberts Bank (one at Fred Gingell Park, one at the tug basin north of the adjacent container terminal, and one at the Tsawwassen First Nation).

Westshore has not directly received noise complaints in the last two years.

Waste Management

Westshore has a recycling program in place to reduce waste generation that includes the following products:

• Electronics

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