INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2018

SOCIO-ECONOMIC CONTRIBUTIONS IGO’s socio-economic contributions can be measured by the dividends we pay, the salaries and other employment benefits we provide to our staff, the money we spend on contractors and consultants, the money we pay in taxes and royalties and payments made through our Corporate Giving activities. In FY18, IGO spent a total of $252,385 on community development and related projects and activities (Corporate Giving), which equates to 0.06% of our FY17 revenue. IGO has a land access agreement with the Ngadju people; the native title holders of the land on which the Nova Operation is located. In compliance with this agreement, a total of $3.04 million has now been paid to Ngadju (Figure 37). Tropicana’s current budget for community donations/support programs in 2017 was $10,000 excluding the $60,000 cost of cross-cultural awareness programs. In general, mining tenement holders must pay royalties in respect of the minerals and metals they extract. Royalties are payable in arrears as they are calculated on the basis of the quantity of minerals recovered in a given year. Royalties payable over the life of a tenement will vary depending on the rate of production. Royalty rates are set by state and territory regulatory bodies for each mineral or metal type. IGO’s royalty payments form a part of the Western Australian Government’s general revenue to fund services such as law enforcement, education, health, roads and community development programs. The Western Australian Government received royalty revenue from it's mineral and petroleum producers totaling $6.06 billion in 2017, an increase of 28% on 2016. Although iron ore was the largest contributor, the gold sector was the second largest contributor, with royalty receipts totaling $267 million for FY17, an increase of over 5% for the period. Other major contributors included base metals ($67 million, 32% higher than FY16) and nickel ($51 million, 8% higher than FY16) (www.dmp.wa.gov.au/About- Us-Careers/Latest-Statistics- Release-4081.aspx). In FY18, IGO paid a total of $31.5 million in tax and state royalties (see Figure 38). SOCIO-ECONOMIC CONTRIBUTIONS FY18 Dividends* Paid FY18 $11.7 million Salaries (excluding Tropicana Operation) $75.3 million Tax and State Royalties $31.5 million Corporate Giving $252,385 Payments to Ngadju $3.04 million * Refer to IGO 2018 Annual Report. FIGURE 38 TAX AND STATE ROYALTIES PAID FY15 FY16 FY17* FY18 35 30 25 20 15 10 5 0 Expenditure ($M) FIGURE 37 PAYMENTS TO NGADJU FY16 FY17 FY18 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 0 Expenditure ($) Decent work and economic growth * FY17 total excludes the $58.2M stamp duty tax paid for Nova Operation. 90 — IGO SUSTAINABILITY REPORT 2018