INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

In FY17 a total of 1,111ML was abstracted from groundwater sources. This water is used in the processing plant, reused underground and for exploration activities. A significant amount of water is discharged into our active tailings dam. Jaguar currently recovers a significant amount of water in tailings, which is reused in the processing plant. The remaining water is discharged into the historic Teutonic Bore pit. All groundwater abstraction is controlled under a groundwater licence issued by the Department of Water. The licence defines a maximum abstraction volume from varying sources around the site. A series of flow meters have been installed to accurately measure the volume of water used. This ensures we operate within our licence limits. The standing water level of each of the production bores and surrounding pastoral bores are periodically measured to assess the degree to which the underlying aquifers are affected. Of particular importance is Jaguar Operation’s effect on the water table and water quality within the surrounding pastoral leases. IGO also carries out water chemistry analysis on samples taken on a quarterly basis at all production bores, pastoral bores and underground water reservoirs. The monitoring provides clear insight into the impacts of our activities on the areas’ groundwater chemistry. Monitoring to date has demonstrated that our activities have not caused any material changes to water chemistry beyond that predicted. Communications with pastoralists have confirmed that they have experienced no adverse outcomes on their properties. At our Jaguar Operation, as required by our groundwater abstraction licence, a Groundwater Monitoring Report was completed during FY17. A reduction in groundwater level in the Wendy’s Borefield, near the Bentley underground mine, had previously been identified and further study was completed on the significance of this in FY17. The study concluded that impact was localised and that it was not impacting surface vegetation or the pastoralist ability to access water for his stock. LONG OPERATION Long Operation’s water abstraction is also controlled under a groundwater licence. Water extracted from the mine is used primarily for dust suppression and underground mining purposes. Excess water is pumped to the surface, held in settling dams to remove sediment, and then discharged onto Lake Lefroy. Water use and discharge volumes are accurately measured using a series of flow meters throughout the site to ensure authorised water abstraction entitlements are not breached. The groundwater at the Long Operation is hypersaline and is toxic to plants. A relatively small percentage of the groundwater is incidentally extracted as water vapour and mist from underground to the surface by the mines ventilation fans. The hypersaline water vapour emitted from the vent fans has, and continues to, pose a threat to surrounding vegetation on a localised level. The Long Operation has redesigned the vent fans to capture the hypersaline mist, ensuring it does not impact local vegetation. In FY17, a total of 218ML was abstracted from groundwater sources, with a further 86ML purchased from BHP Nickel West. This water is reused in underground mining activities and in the paste plant, with the remaining water discharged onto the saltpan of Lake Lefroy. Standing water levels and water chemistry monitoring is periodically carried out and the data is submitted in an annual groundwater monitoring summary to the Department of Water. The Department of Water reviews the report and provides any feedback to IGO. No concerns were identified by IGO nor were any raised by the Department in FY17. suppression and effluent irrigation. Since commissioning, a majority of the recycled water has been directed to the licensed effluent irrigation area or stored in the tailings storage facility for use in the processing plant. TROPICANA GOLD MINE The Tropicana Gold Mine has four groundwater licences, which permit abstraction of groundwater in the area. This is managed in accordance with an operating strategy approved by the Department of Water. During FY17, a total of 7.5GL of water was abstracted from operational bores and the process water supply borefield. The water is used for processing, road maintenance and dust suppression. A series of flow meters are installed to accurately monitor water use, all pipelines are bunded to prevent spills passing into the environment. Groundwater monitoring programs are in place to measure the effect (if any) that abstraction is having on the surrounding water table (i.e. level and chemistry). During FY17, the standing water levels were variable but remained stable, although there were some exceptions which saw significant decreases in standing water level likely due to increased abstraction rates. No significant change in water quality was observed. Surface water monitoring is also undertaken at Tropicana to determine the effectiveness of the site’s surface water management infrastructure following significant rain events. The test results indicated that surface water management on site was effective. JAGUAR OPERATION The Jaguar Operation is situated in a remote area and extracts all its required water from groundwater sources. Groundwater naturally seeps into our underground mines. The water is extracted from the mines to prevent them from flooding. Our water needs are supplemented by production bores situated throughout the mining tenement. IGO SUSTAINABILITY REPORT 2017— 83