INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

SAFETY The safety of our people in the workplace is determined by four key factors: the safety of the physical workplace; the systems of work employed to ensure work is done safely; the behaviours of those doing the work; and the safety leadership provided within the business (i.e. the safety culture). IGO is constantly seeking to improve all four factors. At IGO we track and assess our safety performance based on ‘lag’ and ‘lead’ metrics that are common to the industry. The lag metrics are those metrics that measure injuries or near-misses. The lead metrics are those measures that provide insight into the potential for incidents or injuries to occur, measures of behavior and culture. IGO sets internal targets to drive performance improvement and, where possible, we benchmark our results against other industry participants. In FY17, IGO’s safety results were mixed. Most importantly, none of our people (i.e. IGO employees and contractors) suffered life changing injuries or worse. In FY17, our lost-time injury frequency rate (LTIFR) was 1.69 injuries per million hours worked by our people. This result is lower than the most recently published averages for the Western Australian gold mining and nickel mining sectors which have a reported LTIFRs of 2.3 and 3.0 respectively (refer to www. dmp.wa.gov.au/Documents/Safety/MSH_Stats_Reports_ SafetyPerfWA_2015-16.pdf ). This is a good result. However, whilst most of the injuries experienced by our people were minor, a total of 180 people sustained injuries requiring some type of treatment. This is 30.6% higher than the 125 injuries that occurred in FY16. We experienced a similar result at Tropicana, with a total of 164 people sustaining injuries that required some type of treatment. This is 8% higher than the 151 injuries that were recorded during FY16. Further, some of the injuries that occurred were more substantial. During FY17, at IGO managed sites, 35 of our people suffered injuries that required medical treatment, time off work or people being assigned to alternate duties – up from 33 in FY16. In FY17, IGO had 28 new workers’ compensation claims, compared to 16 in FY16. Twenty-four were unresolved as of 1 July 2017. IGO also records and investigates near misses. These range in potential severity from the relatively minor to the potentially catastrophic. At IGO this latter category of near-miss incident is known as a Serious Potential Incident (SPIs). We define SPIs as incidents that are deemed to have had the potential to kill or permanently and substantially disable someone. In FY17, the frequency rate of serious potential incidents within IGO dropped to 6.76. We are not satisfied with our overall safety performance. IGO acknowledges that the significant injuries were painful and caused distress to the injured people, their workmates and their families. Our clear objective is to improve, and significant organisational effort is being applied to this end. Our goal is to have no significant injuries (defined as any injury requiring medical treatment or time off work) and no serious potential incidents. LTI – Lost-Time Injury Injuries that result in individuals not being able to work for a time. RWI – Restricted Work Injuries Injuries that require an individual to do something other than their normal job. MTI – Medically Treated Injuries An injury requiring medical treatment. Site New Workers’ Compensation Claims LTIs RWIs MTIs First Aid Treatment Injuries Totals (excluding Workers’ Compensation Claims) Long Operation 8 1 6 0 3 10 Jaguar Operation 12 2 7 2 57 68 Nova Operation 5 0 10 5 81 96 All other 3 0 2 0 2 4 Total for IGO 28 3 25 7 143 178 Tropicana Gold Mine 7 1 9 9 145 164 Total 35 4 34 16 288 342 FIGURE 13 20 15 10 5 0 JULY 16 AUG 16 SEP 16 OCT 16 NOV 16 DEC 16 JAN 17 FEB 17 MAR 17 APR 17 JUNE 17 MAY 17 TRIFR 12 MMA MTIFR 12 MMA LTIFR 12 MMA SPIFR 12 MMA INJURY FREQUENCY RATES – 12 MONTH MOVING AVERAGES 62 — IGO SUSTAINABILITY REPORT 2017