Toronto, ON -- Avalon Rare Metals Inc. (TSX:AVL,
OTCQX:AVARF) ("Avalon" or the "Company") is pleased
to announce that it has received a positive report from an independent
analysis by Jantzi- Sustainalytics of core stakeholder perceptions,
and its Environmental, Social, and Governance ("ESG")
performance.
In May 2010, Avalon engaged
Jantzi-Sustainalytics to assess Avalon's sustainability performance
against a number of benchmarks including stakeholders' expectations,
competitors' performance, industry average performance levels, and
socially responsible investor expectations.
The Jantzi-Sustainalytics
independent analysis, conducted over a three-month period, included in
person and telephone interviews with a diverse range of stakeholders; a
review of Avalon's corporate policies, operating and administrative
procedures, public disclosures, and a comprehensive questionnaire to
management and advisors. Avalon's core stakeholders fall within seven
groups: aboriginal/local communities, investors, non-governmental
organizations ("NGOs"), government, contractors and advisors,
and staff. The assessment also included the comparison of Avalon's
management systems and performance against four peer companies, three of
which were already known to Jantzi-Sustainalytics, and one other for
which the firm conducted an independent assessment based on published
information.
The results of the comparisons are
shown in the table below. The ranking system is based on a score of 0 to
100. As can be seen from the table, Avalon's performance ranks above
average among other similar companies with which it was compared.
Score
|
Overall
|
Governance
|
Social
|
Environmental
|
Avalon
|
69.2
|
71.1
|
74.0
|
61.1
|
Average
|
59.0
|
63.9
|
64.8
|
47.8
|
Highest
|
74.5
|
72.1
|
79.5
|
68.6
|
Simon MacMahon, Director,
Jantzi-Sustainalytics Sustainability Intelligence Team, noted, "For
an exploration and development company, Avalon demonstrates strengths in
a number of important sustainability areas, particularly in aboriginal
relations. Avalon has also demonstrated that it embraces the opportunity
to further strengthen its sustainability performance as it progresses
towards the permitting and production phases by further enhancing its
management systems, transparency and public disclosure, including being
transparent about the limitations posed by its size and the scope of its
projects."
Don Bubar, Avalon's President & CEO was
pleased with the results. "Avalon is well aware that as it
progresses through permitting to production, stakeholder expectations for
the sustainable management of material issues will continue to evolve and
inevitably become more complex. The Company is prepared to commit the
human resources and provide the policy framework, practices and
procedures, and transparent reporting necessary to improve its
sustainability performance and enhance its current reputation as a
socially-responsible, small-cap company. By doing so, we hope to attract
the interest of the socially-responsible investment community, as well as
clean technology investors interested in commodities" noted Bubar.
As
Avalon progresses through the permitting and mine development stages,
over the next twelve to twenty-four months, the Company will respond to
many of Jantzi-Sustainalytics' findings, including actions to:
- Broaden the
scope of sustainability reporting, including issuing an Annual
Sustainability Report and disclosing the risks and opportunities
posed by climate change.
- Adopt and fully
document specific project and corporate policies, practices and
procedures, building upon the Company's early adoption of PDAC E3
Plus Principles and Guidelines, including providing mechanisms such
as a third-party operated whistleblower hotline and providing
training to employees and contractor staff on ethical issues.
- Adopt
best-in-class community consultation policies and practices,
including establishing formal grievance mechanisms for external
stakeholders.
- Continue to
consult further with aboriginal groups, through the leadership,
community members and especially the community Elders. Secure formal
agreements with aboriginal groups.
- Allocate board
level responsibility for community/aboriginal relations, including
having the Company's established independent CEHS Advisory Committee
report to the Board (The Committee is currently chaired by executive
management).
- Adopt
contractor management systems more closely aligned with best
practices.
- Continue
assessing and implement alternative renewable and co-generation
production and energy storage schemes (e.g. wind, geothermal, solar,
battery) that best meet the overall environmental and economic
parameters of the Nechalacho project.
- In concert with
aboriginal peoples, government agencies and other mining companies
operating in the Northwest Territories, implement wildlife
monitoring and protection programs.
- Fully and
transparently report on the options considered for the tailings
disposal at the Nechalacho project, including their potential impact
on groundwater and wildlife, and the reasons for the decisions
taken. Ensure that best practices for the maintenance of tailings
facilities are implemented.
- Hire
for sustainability, including extensive training, development and
the retention of employees and contractors with an appreciation of
sustainability issues at all levels and functions.
"We
look forward to meeting the challenge of achieving 'best-in-class' ESG
performance" commented Vice-President, Operations, David Swisher.
"Our customers are increasingly demanding high sustainability
performance from their suppliers and accordingly we regard our strong ESG
performance as a competitive advantage. Similarly, we will be looking to
partner with suppliers who can contribute to our sustainability
objectives" added Swisher.
Rare earth elements are
used in the production of many clean technology products such as hybrid
and electric vehicles, wind turbines, and energy-efficient lighting and
are also used extensively in the electronics industry.
About Jantzi-Sustainalytics
Jantzi-Sustainalytics
is a global leader in sustainability research and analysis. We provide a
global perspective, underpinned by nearly 20 years of local experience
and expertise in the responsible investment and traditional socially
responsible investment markets. Jantzi-Sustainalytics strives to
continuously provide high-quality solutions and commits to remain
responsive to the current and future needs of our clients. Internationally,
the firm operates as Sustainalytics and is headquartered in Amsterdam
with local offices in Toronto, Boston, Frankfurt and Madrid.
www.sustainalytics..com
About Avalon Rare Metals Inc. (TSX:AVL, OTCQX:AVARF)
Avalon Rare Metals Inc. is a mineral development company
focused on rare metals deposits in Canada. Its flagship project, the
100%-owned Nechalacho Deposit, Thor Lake, NWT, is emerging as one of the
largest undeveloped rare earth elements resources in the world. Its
exceptional enrichment in the more valuable 'heavy' rare earth elements,
which are key to enabling advances in clean technology and other growing
high-tech applications, is one of the few potential sources of these
critical elements outside of China, currently the source of 95% of world
supply. Avalon is well funded, has no debt and its work programs are
progressing steadily. Social responsibility and environmental stewardship
are corporate cornerstones. Avalon's performance on community engagement
in the north earned it the 2010 PDAC Environmental and Social
Responsibility Award.
Post-closing
of the public offering announced on September 15, 2010, the Company's
issued and outstanding shares are expected to be 90,427,670. Cash
resources will be in excess of $40 million.
To find out more about Avalon Rare Metals Inc., please visit
our website at www.avalonraremetals.com. For
questions and feedback, please e-mail the Company at ir@avalonraremetals.com
or contact Don Bubar, President and CEO at 416-364-4938.
This
news release contains forward-looking information and is subject to a
variety of risks and uncertainties and other factors that could cause
actual events or results to differ materially from those projected in the
forward-looking information. Forward-looking information is based on the
opinions and estimates of management at the date the information is
given, and is subject to a variety of risks and uncertainties and other
factors that could cause actual events or results to differ materially
from those projected in the forward-looking information. The
forward-looking information contained herein is given as of the date
hereof and the Company assumes no responsibility to update or revise such
information to reflect new events or circumstances, except as required by
law.