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22 Independence Group NL
The Mining Process
1.
Exploration
IGO’s exploration effort targets both near-mine areas and regionally prospective areas. At present we are exploring
near-mine opportunities at both Jaguar and Long Operations. Our key regional exploration joint venture projects are
located at Lake MacKay in the Northern Territory, and the Bryah Basin and Salt Creek in Western Australia. We are
also exploring in Scandinavia. IGO’s exploration is often done in joint venture with other companies.
Mining involves five distinct
phases. Each is necessary for
the success of our business.
3.
Operations
Operations involve the extraction of ore from the mine and its beneficiation to produce our saleable products;
concentrates that contain gold, nickel, zinc and copper. Operations involve ongoing exploration and resource
definition, and ongoing mine design and processing optimisation. Our intention is always to extract the maximum
economic return on our invested capital whilst operating in accordance with our statutory obligations and our
commitments to our stakeholders. IGO also completes mine closure planning and progressive rehabilitation of the
new land forms created by our mining activity. At present IGO has two active mines; Jaguar and Long Operations,
and is the 30% owner of the Tropicana JV. In the course of managing an operating mine, a key decision lies in either
mining the resource to exhaustion or selling the mine to a third party who believe they are better placed to extract
further value from the mine.
2.
Project Development
Project development involves the definition of economically minable resources either as the product of our
exploration efforts or through the purchase of prospective ground from other parties. Project development involves
a number of key steps including feasibility studies and environmental approvals. Relatively few projects progress
through the process from exploration to an operation. IGO’s key development project is the Nova Operation near
Norseman in Western Australia. At present the mine is being established with the construction of the ‘decline’ – a
road tunnel to the ore body. We are also progressing final permitting of the Stockman Project in Victoria.
4.
Active Closure
As a mine approaches the end of its economic life, mine closure planning is finalised in consultation with our
stakeholders. A closure ‘basis of design’ and ‘mine closure criteria’ are established. Earthworks are completed to
reshape the land forms created by our mining activity to ensure they are both safe, stable and suitable for the
intended post-closure land use. This may involve either passive or active revegetation and other activities. Typically
infrastructure is demolished and removed except where otherwise approved. At present, IGO has no mines in the
this phase.
5.
Passive Closure
Following the completion of closure earthworks, demolition work and revegetation, mine sites are subject to ongoing
environmental monitoring to assess their progress against the agreed closure criteria. Typically this includes monitoring
of water quality, revegetation, successional processes, and rates of erosion. Passive closure often exceeds a decade.
Once IGO believes the closure criteria have been met and subject to the approval of the relevant authorities, the
associated land is relinquished back to the state. At present, IGO has no mines in the Passive Closure phase.
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