INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

A total of 3,046,795GJ of energy was consumed across all IGO managed operations (including exploration and corporate) in FY17. Despite reducing energy consumption at our Long Operation by 12%, increases at Jaguar (5%) and the commissioning of the Nova Operation has increased our total energy consumption. Energy consumption at our Long, Jaguar, Nova and Tropicana operations is predominantly associated with the use of diesel in the operation of heavy earthmoving machinery in mining and (with the exclusion of Long) the use of electricity in the operation of beneficiation plant for metal extraction or concentration. Electricity is produced on site at Jaguar, Nova and Tropicana, and purchased from a third-party at Long. Electricity is generated from diesel at Jaguar and Nova. Long’s and Tropicana’s electricity is generated from compressed natural gas (albeit the plant at Tropicana can use diesel). IGO’s Exploration Projects have relatively low energy consumption based on diesel use in vehicles and drill rigs. Figure 15 shows the percentage contribution of each identified ‘facility’ to the total amount of energy consumed. GREENHOUSE GAS EMISSIONS The generation of greenhouse gas (GHG) emissions and the impact on global climate change is considered a significant issue in Australia and the rest of the world. While relatively minor in comparison to other mining and industrial emitters, IGO understands that collectively the mining industry has a part to play. In FY17, IGO’s total Scope 1 and Scope 2 GHG emissions for all IGO facilities was 162,183t (CO 2 -e), produced mainly through the consumption of diesel and compressed natural gas (CNG) at our Tropicana, Nova and Jaguar operations (refer to Figure 16). In an effort to reduce GHG emissions, the Long Operation is using a 5% biodiesel blend for its mining fleet. The Nova Operation is also considering the installation of a solar farm pending a success request to ARENA for funding support. The use of CNG fuelled power stations at Jaguar and Tropicana was selected over diesel due to its improved efficiency and lower GHG generation. ENERGY CONSUMPTION CARBON EMISSION EXCEEDANCE The Australian Government Clean Energy Regulator introduced a baseline determination requirement for all facilities that generate over 100,00t CO 2 e – (Scope 1) annually in 2015. This ruling requires emitters over this threshold to set a baseline, that if exceeded in a subsequent year, an appropriate carbon offset or credit must be obtained for emissions above the baseline. In FY17, the Tropicana Gold Mine was contacted by the Clean Energy Regulator as it exceeded this threshold and has qualified for a reported emissions baseline determination. During the reporting year, Tropicana Gold Mine has been developing an appropriate baseline for the operation that was submitted to the Clean Energy Regulator in March 2017. No response has been received from the regulator at this time. Further information will provided in next year’s sustainability report. FIGURE 15 FIGURE 16 0.08% Exploration 2,335GJ 4% Long 116,616GJ 26% Jaguar 794,552GJ 23% Nova 705,453GJ 47% Tropicana 1,427,178GJ* 0.02% Corporate office 660GJ Scope 1: 148,440t CO 2 -e Tropicana: 71,958* Jaguar: 34,465 Nova: 38,895 Long: 2,958 Exploration: 164 Long: 13,611 Corporate Offices: 132 Scope 2: 13,743t CO 2 -e ENERGY CONSUMED: 3,046,795GJ GREENHOUSE GAS EMISSIONS 92% 8% (Energy consumed net: 2,507,238GJ ) (Energy produced: 539,557GJ ) * Data provided for the Tropicana operation is 30% of the total energy consumption, representing IGOs 30% share in the project. (Total Scope 1 and 2: 162,183t CO 2 -e ) * Data provided for the Tropicana operation is 30% of the total greenhouse gas emissions representing IGOs 30% share in the project. 84 — IGO SUSTAINABILITY REPORT 2017