SPEND ON GOODS AND SERVICES IGO supports economic development in the communities in which we operate by seeking to invest first locally, then regionally within Western Australia, then nationally and finally internationally. At the Nova Operation, the highest value contracts are for underground mining services, fuel, drilling services, haulage, binding agents for backfill and catering services. Similarly, these services and materials are sourced from large, reputable organisations with operations in Australia. At the Long Operation, our highest value contracts were our off-take agreements with BHP, which processes IGO concentrate, diamond drilling and fuel. At the Jaguar Operation our highest value procurement contracts were our transport contracts, underground mining and drilling services, fuel, gas and catering services. These services and materials are sourced from large, reputable organisations with operations in Australia. FIGURE 39 SPEND ON GOODS AND SERVICES FY15 FY16 FY17 FY18 500 400 300 200 100 0 Expenditure ($M) In accordance with IGO’s Aboriginal Employment and Business Development Standard ( ), IGO is committed to supporting both a pathway to employment and the creation of real employment opportunities for Aboriginal people, and in particular, the Traditional Owners on whose land IGO operates. Specifically, IGO endeavours to: • support education, vocational and job readiness training • promote employment opportunities • implement a supportive pre-employment process • apply a preferential selection process • promote a culturally sensitive workplace. To date we have had some notable successes of which all involved can be very proud. However, we, like others with similar good will, have faced significant challenges. With regard to direct employment by either IGO or our contractors at our Nova Operation, it has remained an ongoing challenge to find Ngadju candidates who are fit and work-ready, or post-employment, are willing or able to meet the demands of life on the mine. This in no way is intended to call into question the character of those involved. Rather, this situation is often the cumulative product of Ngadju’s shared history since colonial times. Whilst we cannot speak to quantitative metrics, it is self-evident to even the casual observer that the Ngadju people have and continue to suffer disproportionately from privations associated ill health, poor education, poverty, cultural disaffection and all too often, a reduced life expectancy. This knowledge informs our approach to those individuals who seek employment, and to the support we offer to the 19 Traditional Owners whom are our work mates. With regard to our support of small businesses run by or co-owned by Traditional Owners, again we can also point to success stories (as reported in our previous sustainability reports). But to suggest there is only good news would be disingenuous. Starting in FY16, IGO aided a small start-up business which provided services to the Nova Operation as a subcontractor. IGO provided the enterprise with ongoing support, an interest free loan, and the gift of minor capital items. However, like many small businesses, the company in question struggled with staff retention and hence quality and reliability of service. In FY18, after careful consideration, their contract was discontinued. The affected employees were offered jobs with the primary contractor and the loan was forgiven. In noting this matter, our intention is only to acknowledge the challenges IGO faces in supporting such start-up businesses, and in no way is intended to besmirch the good name of those involved. To conclude, the good news outweighs the bad. We continue to think it is important to honestly address the challenges. As noted at the outset, IGO remains committed to meeting this challenge. CASE STUDY / CONTRACTORS IT’S NOT ALL GOOD NEWS IGO SUSTAINABILITY REPORT 2018— 91