INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2018

IGO SUSTAINABILITY REPORT 2018— 83 NOVA OPERATION The Nova Operation updated its reserves in FY18, amending its mine life to 2026. Approval was also received for the construction of a permanent waste rock dump at the site. In recognition of these changes and following engagement with the Department of Mines, Industry Regulation and Safety (DMIRS), IGO will submit an updated MCP in December 2018. The focus for closure planning activities at Nova is the refinement of final landform designs for the TSF and waste rock dump. Closure objectives and completion criteria will also be investigated, based on additional vegetation assessment and the selection of suitable reference sites. A summary of key closure planning activities will be provided in next year’s sustainability report. LONG OPERATION In June 2018, IGO placed our Long Operation into care and maintenance. Consideration was given to rehabilitation opportunities that still preserved the asset for further exploitation in the future. A number of historical mining landforms were identified as no longer essential to operational requirements and rehabilitation was commenced. This included earthworks at two TSFs, both ROM pads, and portions of the waste rock dump. Work commenced at the end of FY18 and will continue into FY19, with an update provided in next year’s report. The Long Operation MCP was updated and submitted to DMIRS at the end of September 2018. IGO engaged a number of closure and other relevant subject matter experts to assist with this project, involving both field and office-based surveys and research. The major focus of the MCP was the analysis of post-mining land use options and the refinement of completion criteria, performance standards that closure activities can be measured against. IGO considers the Long MCP to be suitable for closure implementation, with approval still being sought from DMIRS at the time of publication. IGO is currently working with BHP Nickel West regarding its closure planning for the Kambalda concentrator tailings dam located on IGO's mining lease. JAGUAR OPERATION The Jaguar Operation MCP, submitted to the DMIRS in June 2017, is with the department for comment. The updated MCP included outcomes from a geochemistry analysis, landform and cover modelling, and a revision of the closure cost estimate. Remediation of the Teutonic Bore site continued in FY18 and IGO held a number of meetings with the DMIRS to progress a collaborative rehabilitation program. ESTIMATED COST OF CLOSURE Nova Operation $35,424,016 Tropicana Operation $20,209,887* Long Operation $5,632,563 Total $61,266,466 * This figure represents IGO’s 30% share. Note: Jaguar Operation’s closure costs at date of divestment were $12,745,551. However, they were not accounted for in IGO liabilities at the end of FY18 due to its divestment. In FY18, IGO’s closure cost estimates were independently audited as part of the annual financial audit conducted by BDO Audit (WA) Pty Ltd. IGO also undertook an internal review of Tropicana’s mine closure cost estimate. IGO anticipates its MCPs will be made publically available through the DMIRS’s website following approval. MINE REHABILITATION FUND IGO, like many other mining companies, pays a Mining Rehabilitation Fund Levy to the Government of Western Australia for the purpose of funding the closure of abandoned mine sites; these being sites where liability rests with the state because of business failure or other historic reasons (refer to www.dmp. wa.gov. au/19344. aspx). In FY18, IGO’s levy payments totalled $217,183. TEUTONIC BORE (JAGUAR) IGO assumed liability for various parts of the Teutonic Bore rehabilitation works following the purchase of the Jaguar Operation in 2011. Across FY17 and 18, over 400t of scrap steel was removed for recycling. Additionally, over 100t of old conveyor belt was transported to Perth for re- purposing as liner for piggeries, stables and trailers. Following these clean-up works, botanists have been contracted to conduct an assessment on weed species occurring at the Jaguar mine site. Pastoral, exploration, mining and other anthropogenic activities in the region over previous decades have facilitated weed introductions and proliferation. The scope of these works was to enhance the level of knowledge regarding weeds at a local scale, geospatially record the distribution of weeds detected across the site, and highlight high-risk areas for weed occurrence. This survey was very successful in identifying some focus areas for ongoing weed control, and establishing prioritisation to 1) eradicate weed species from tenure, and 2) prevent proliferation of weed populations from isolated source populations. It also assisted in identifying a weed species of national significance – the prickly pear – with a management program now underway. In FY18, Jaguar Operation initiated an Intermediate Bulk Container (IBC) reuse, re-purpose program, aimed at ensuring IBC’s that are in good condition are being reused by suppliers and avoiding landfill. Similarly, over $100,000 has been spent at the Jaguar Operation to improve bunding and concrete areas to contain potential spills. MINE CLOSURE PLAN CLOSURE COST LIABILITY REPORT INTERNAL AND EXTERNAL CLOSURE COST ANALYSIS CASE STUDY / ENVIRONMENT