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34 Independence Group NL

LONG OPERATION

Since October 2002, the Long Operation has produced over

2 Mt of nickel ore, producing over 100,000 contained nickel

metal tonnes. A commitment to brownfields exploration

has seen the discovery of the McLeay (2005) and Moran

(2008) ore bodies and has enabled the operation to

develop a reserve base. The nominal production rate

is 9,000 to 10,000 tonnes of contained nickel metal per

annum.

The Long Operation is comprised of both freehold land and

state mining leases. It sits within a region that has been,

and continues to be, subject to extensive exploration,

mining and ore processing activities. Our nearest

neighbours are other mining operations, which include the

BHP Billiton Nickel West Pty Ltd’s (BHPB’s) concentrator

facility and Gold Fields Australia Pty Ltd’s St Ives Gold Mine.

One of the noteworthy aspects of the Long Operation is

the presence of third party assets on the IGO property (e.g.

tailings lines run from BHPB’s concentrator facility to the

west of the Long Operation to the BHPB tailings storage

facilities located to the east of the Long Operation).

Given the long history of the Long Operation, and the

proximity and history of surrounding mining activities,

the greater area has been heavily impacted by mining

activities. Various parts of the property are also subject to

impacts caused by other parties.

A discussion of the key environmental impacts is

presented in the Environmental impacts section of this

report.

LOCATION

The Long Operation is located on the shores of Lake

Lefroy, approximately 3km east of Kambalda and 50km

south-south-east of Kalgoorlie.

The Long Operation comprises approximately 1,381 square

kilometres of tenements and sits within the traditional

lands of the Ngadju people.

BACKGROUND

IGO acquired the Long Operation from BHPB’s (formerly

WMC Resources Ltd) in September 2002. It had been

operated by WMC Resources since 1979 before being

placed into ‘care and maintenance’ in early-2000. The

mine was re-commissioned in October 2002 and has been

operating successfully since.

The workforce is largely residential in Kambalda and

Kalgoorlie with 13% being FIFO.

The Long Operation involves the underground mining of

ore and waste rock. Traditional stope and air leg mining

methods are employed. IGO has an off-take agreement

with BHPB where the ore produced from the mine is

delivered to their adjacent concentrator facility for toll

treatment and production of nickel concentrate. In FY2015,

the mine produced 258,634 tonnes of ore and 110,570

tonnes of waste rock.

The mining process at the Long Operation results in the

creation of underground voids. Where the surrounding

rock is also to be mined, these voids must be backfilled

to prevent the collapse of the new mining areas. This is

achieved by backfilling voids with a paste fill made from

cement and tailings sourced from the neighbouring St Ives

Gold Mine. This backfill material is manufactured on site

at our paste plant and pumped underground. At present

all exploration activity at Long Operation is conducted

underground.

2 Mt

production from the Long

Operation since 2002