INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2018

BACKGROUND Sirius Resources NL (Sirius), an ASX-listed minerals exploration and development company, first announced the discovery of the Nova nickel- copper-cobalt deposit in July 2012. Following IGO’s acquisition of Sirius in September 2015, development of the Bollinger deposit was accelerated. Construction of the processing plant and associated infrastructure was completed on time and on budget resulting in the first delivery of concentrate by December 2016. It took five years from discovery to first concentrate production. The Nova processing plant reached design capacity in the second half of FY18. Trials were extended to identify opportunities to achieve higher throughput rates on a permanent basis. Additional studies and plant upgrades will occur in FY19. Concentrate is stored in an enclosed shed on-site before being placed in sealed containers for transportation off site along a private access road to the Eyre Highway. The concentrate is transported south to the Port of Esperance, with some nickel concentrate also going north to the Kambalda Nickel Smelter. The Nova Operation successfully completed all shipment trials under the Works Approval at the end of FY18. A licence amendment was approved prior to the publication of this report. CONSUMABLES The main consumables used at Nova in FY18 were diesel, grinding media, lime and explosives. Electricity for the Nova Operation is produced by a 20MW diesel power station, operated by Zenith Pacific, under a build, own and operate contract. As part of our power supply strategy, IGO has entered into a contract with Zenith Pacific to construct and operate a 5.7MW photo voltaic solar power system that will form part of a fully integrated power supply solution. We anticipate construction to be completed in FY20. Once complete, the solar power system will provide renewable power insertion of up to 50% of the sites electricity demand. Raw water is supplied from mine dewatering and several purpose-built water supply bores surround the Operation. Water sourced from mine dewatering and production bores is pumped to a lined pond for distribution around the site. Water for domestic use is treated at the reverse osmosis plant. Another reverse osmosis plant provides quality water for concentrate washing. Surplus water is transferred to the lined tailings storage facility where it is recycled for use in the process circuit. WASTE The Nova Operation’s main waste streams are tailings and waste rock. Waste rock is used for the reinforcement of the tailings storage facility embankments and back filling in the underground mine. Approval for the construction of a small waste rock dump was received in FY18 to accommodate surplus material. The Tailings Storage Facility, a paddock style impoundment, has been constructed for long- term disposal of tailings. The design incorporates a single main embankment surrounding the facility, with a multi-spigot discharge and a composite liner system. Underdrainage has also been installed to aid in consolidating tailings and maximising water recovery and reuse. An on-site landfill facility is used to dispose of both putrescible and inert waste. CONTRACTOR SAFETY In FY18, IGO’s exploration team engaged the company HiSeis to complete a large-scale seismic survey of the area surrounding the Nova Operation, to identify exploration targets. The task required HiSeis to have a team of 28 people on site to complete a short duration, high intensity work program involving heavy equipment in relatively isolated locations. While elements of HiSeis’ work are all but unique, the planning, logistics and safety management challenges are common to many activities in the industry. It is within this context that IGO is pleased to note that our partnership with HiSeis exemplified how good project leadership and careful planning results in great safety performance outcomes. At its heart, the project employed an effective safety system, based on risk management principles, to inform the management of the work. Further, the team collectively demonstrated strong Visual Safety Leadership; a behaviour that we aspire to in all areas of our business. Although the project had its challenges, including poor weather conditions and constraints associated with physical site access, the project’s objectives were achieved without material incident. In total, some 20,000 hours of work were completed without any injuries to anyone involved. IGO would like to acknowledge and congratulate both the HiSeis team and the IGO staff involved. CASE STUDY / SAFETY Good health and wellbeing IGO SUSTAINABILITY REPORT 2018— 37