2016 Sustainability Report Contents

2 4 15 20 MESSAGE WHO ABOUT THE YEAR FROM THE CEO WE ARE THIS REPORT IN REVIEW

“THERE IS NO MORE IMPORTANT OBJECTIVE IN NEWCREST THAN THE ELIMINATION OF FATALITIES. WE WILL NEVER BE SATISFIED WITH OUR PERFORMANCE UNTIL WE ACHIEVE THIS OBJECTIVE”

SANDEEP BISWAS MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 1

24 57 OUR PEOPLE DATA TABLES

38 70 ECONOMIC ASSURANCE PERFORMANCE STATEMENT

42 73 SOCIAL CORPORATE PERFORMANCE DIRECTORY

50 ENVIRONMENTAL STEWARDSHIP

Front page: Lihir school students learning to analyse samples. IFC: Fiona Karaut, Superintendent – Orebody Knowledge, pegging a drill hole at Kapit Flat Stockpile. 2

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Message from the CEO

At Newcrest, we aim to be the Miner of Choice™, striving to be a safe In February 2016, we experienced a fall of ground at our Kencana mine miner, a trustworthy partner, a highly sought after employer and a sound in Gosowong, Indonesia. The event trapped one of our employees and valued investment. underground and led to the suspension of mining operations at both Kencana and Toguraci mines. The entire workforce, as well as industry Within the first three months of FY2016, we experienced two fatalities. peers, partners, suppliers and government agencies, rallied behind our In July 2015, a Hidden Valley Joint Venture employee was fatally injured rescue effort, and after eight days, we successfully freed our employee in an incident on a road at the mine site in Papua New Guinea. In September from the mine safely and in a relatively healthy condition. Following this, 2015, a mine technician was fatally injured at Cadia in Australia. In the we conducted a detailed review, which led to a revised mining sequence nine months since these incidents, we have conducted an intensive and method at Kencana. Operations remained suspended during review across the organisation and continued our Safety Transformation investigations, with Toguraci resuming in April and Kencana Plan, determined to eliminate fatalities and life-changing injuries from recommencing in June. our Company. Together with safety, the health of our people is also important. Newcrest Our three key pillars of Safety Transformation – a strong safety culture, has a three-year strategic health plan in place, which is supported by our critical controls for every high-risk task and robust process safety occupational health standards, setting out clear business expectations systems – remain firm, with clear focus and priority given to each pillar, to help manage our health and hygiene programs across the Company. and resources supporting the transformation unprecedented and During the year, the occupational health standards were streamlined in unrelenting. Continuing to consistently and methodically channel our consultation with our site teams to reflect their changing needs and to efforts into these three pillars is key to ensuring our people go home identify opportunities to help support the delivery of these programs. safe every day. A key focus of both NewSafe – the means by which we Fatigue management, mental health and infectious diseases were other build our safety culture – and our new Critical Control Management key areas of focus during the year. system is the emphasis on positive safety conversations and coaching out in the field. The combined effort results in hundreds of positive safety From a financial perspective, improved operational performance was conversations every day, at all levels, helping our culture to improve and driven throughout the year by a continued focus on safe cash generation, strengthen with each interaction. During the year, we commenced work operational discipline and profitable growth. Three years of improving on defining our process safety hazards, and identifying gaps between efficiencies, driving down our costs and reducing debt has put us in a existing processes and controls. Newcrest adopted the Centre for strengthened financial position to consider profitable growth options Chemical Process Safety (CCPS) Framework, which sets the foundation in the years ahead. to ensure we can systematically and comprehensively manage the integrity and containment of high-energy and toxic processes. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 3

Newcrest remains focused on our three key transformation pillars of safety, operational performance and people, and committed to lead in safe, responsible, efficient and profitable mining.

Newcrest’s economic growth is tied strongly to our contributions in Looking after the environments we operate in is important to us and the countries in which we operate, alongside our relationships with our our host communities and governments. This year, we conducted a stakeholders in these countries. Building and maintaining strong and cost accuracy review at our sites against our Mine Closure Standard, sustainable relationships with our host communities continues to continued voluntary implementation of the Cyanide Code and be a priority, and in recognition of the importance of mutually beneficial conducted Environmental Impact Studies for new projects. relationships with government and communities to our long-term In conclusion, I’d like to thank our employees, contractors, suppliers, success, I appointed Ian Kemish to the role of Executive General host communities and governments for their efforts and support Manager of Public Affairs and Social Performance. over the year. I look forward to working together in the year ahead Key to our successful relationships with all our stakeholders as we continue to work towards realising our vision as Miner of Choice™. is transparency and communication. We aim to meet the highest global industry standards in this regard. During the year, Newcrest continued its commitments to the Voluntary Principles on Security and Human Rights and the Extractive Industries Transparency Initiative (EITI). As a member of the Voluntary Principles on Security and Human Rights Initiative (VPI), Newcrest completed a baseline assessment for all overseas operations and projects. Newcrest SANDEEP BISWAS was also an active participant in the annual VPI Plenary meeting in MANAGING DIRECTOR AND Columbia on 20–21 April 2016. Further to this, Newcrest established CHIEF EXECUTIVE OFFICER a new Anti-bribery and Corruption portal. The new portal provides helpful information for Newcrest personnel on how to comply with Newcrest’s policies that deal with anti-bribery and corruption and laws prohibiting bribery. A new online Code of Conduct training module was also developed and translated into the languages of the communities in which we operate. 4

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Who We Are The health and safety of our workforce is a core value for Newcrest. Our clear focus remains on eliminating fatalities and life-altering injuries from our business, while striving to make continual progress on reducing all injuries and health impacts. We believe that a strong commitment to health and safety improvement will yield benefits for our workforce and for overall business performance.

Our profile

Newcrest is one of the world’s largest gold mining Headquartered in Melbourne, Australia, Newcrest is companies, with operating assets in four countries, among the top 50 companies listed on the Australian predominantly in Australia and the South-West Pacific Securities Exchange and is also listed on the Port region. The Company’s key priorities are safety, operating Moresby Stock Exchange. As at 30 June 2016, Newcrest discipline, cash generation and profitable growth. had a market capitalisation of USD 13.1 billion and had a workforce of over 12,000 people across Australia, Newcrest has strong technical capabilities in exploration, the Asia–Pacific region and Africa. deep underground block caving, shallow targeted underground mines, large open pits and a variety of metallurgical processing skills. The Company is committed to maintaining a safe environment for our people, operating and developing mines in line with good environmental practices and building lasting relationships with the communities in which we operate.

Cadia. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 5

Gosowong Nicaragua Hidden Valley Ecuador Lihir Indonesia Wafi-Golpu Bonikro

West Africa Telfer Fiji

Cadia

OPERATIONS / NEAR-MINE GROWTH New Zealand GROWTH OPPORTUNITY OPPORTUNITY

Our assets

CADIA LIHIR TELFER Located in central west New South Wales, One of the world’s largest gold deposits, Operating since 1977 and 100 percent Australia, 25 kilometres south-west of Orange Lihir is 100 percent owned by Newcrest and owned by Newcrest, the Telfer gold-copper and 250 kilometres west of Sydney, Cadia has located on the island of Niolam, 900 kilometres mine is located in the Great Sandy Desert one of the deepest panel caves in the world north-east of Port Moresby in the New Ireland in Western Australia, approximately and is 100 percent owned by Newcrest. Province of Papua New Guinea (PNG). 400 kilometres south‑east of Port Hedland.

GOSOWONG BONIKRO HIDDEN VALLEY Located on Halmahera Island, Indonesia, Located approximately 250 kilometres north A gold and silver mine located approximately Gosowong is operated by PT Nusa Halmahera west of Abidjan in CÔte d’Ivoire, Bonikro is a 90 kilometres south-west of Lae in the Morobe Minerals, which is owned by Newcrest gold mine 89.89 percent owned by Newcrest. Province of PNG, Hidden Valley is part of the (75 percent interest) and PT Aneka Tambang Hidden Valley Joint Venture(1), which is owned (25 percent interest). 50 percent by Newcrest and 50 percent by Harmony Gold Mining Company Limited.

(1) Subsequent to the reporting period, Newcrest sold its 50 percent interest in the Hidden Valley mine, as announced on 19 September 2016 and 27 October 2016. 6

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Governance, ethics and transparency

Adherence by the Company and its people to As at 30 June 2016, the Newcrest Board The Safety and Sustainability Committee the highest standard of corporate governance comprised 10 Directors, including two Executive assists the Board in its role of overseeing, is critical in order to achieve our vision to be Directors, Sandeep Biswas, Managing Director monitoring and reviewing the Company’s the Miner of Choice™. The Company regularly and Chief Executive Officer, and Gerard Bond, practices and governance in the areas of reviews its governance and compliance practices, Finance Director and Chief Financial Officer. safety, health, relationships with communities, taking into account the recommendations in environment, sustainability, including the The remaining eight Board members, including the Corporate Governance Principles and Company’s annual Sustainability Report, and the Chairman, were Non-Executive and were Recommendations of the Australian Securities the human rights and security of communities, considered independent in accordance with Exchange (ASX) Corporate Governance Council. employees and operations. The Committee the Board’s Director Independence Policy. assists the Board with the Company’s Changes to the Board have occurred since management, reporting, risk, control systems LEADERSHIP 30 June 2016, as noted on page 34 of the and assurance with respect to safety, health, Annual Report. Each Director’s skills, experience The Board of Directors determines the strategic relationships with communities and other areas and relevant qualifications and expertise, as direction of the Company, regularly reviews within its remit. Within its scope, the Committee well as the term of office held as at 1 October the appropriateness of it and oversees its monitors the Company’s resources applied 2016, are set out on pages 7 to 9 of this Report. implementation. This includes the responsibility to achieve compliance with applicable policies of sustainability, which in turn is devolved to The functions of the Board are set out in the and standards, reviews the Company’s response senior key people and, ultimately, their teams. Board Charter. The roles and responsibilities on issues of concern or non-compliance and An annual review is undertaken in relation of the Board Committees are also set out reviews management’s recommendations to the Board’s performance and effectiveness in charters, which are regularly reviewed and in relation to industry trends and standards. and that of its Committees and individual revised as appropriate. The Board operates Directors. This process is based on interviews four standing Committees (Audit and Risk, with, and/or questionnaires provided to, Human Resources and Remuneration, Safety each Director and the General Counsel and and Sustainability and Nominations), which each Company Secretary and other relevant provide a forum for a more detailed analysis Executives. Regular improvements are made of key issues. The Audit and Risk Committee to the functionality and performance of the and the Nominations Committee each Board and its associated committees. Public comprises a minimum of three Non-Executive affairs and social performance is a standing Directors of the Newcrest Board. The Safety agenda item at most Board meetings. and Sustainability Committee and the Human Resources and Remuneration Committee each comprises a minimum of four Non-Executive Directors of the Newcrest Board. All Directors receive papers and minutes for all Committees and are invited to attend all Committee meetings. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 7

BOARD OF DIRECTORS(2)

PETER HAY SANDEEP BISWAS GERARD BOND PHILIP AIKEN AM LLB, FAICD, 66 BEng (Chem) (Hons), 54 BComm, Graduate Diploma BEng (Chemical), Independent Managing Director and Applied Finance and Advanced Management Non‑Executive Chairman Chief Executive Officer Investment, Chartered Program (HBS), 67 Mr Hay was appointed as Mr Biswas was appointed Managing Accountant, F Fin, 48 Independent Non‑Executive Chairman of Director and Chief Executive Officer Finance Director and Non‑Executive Director the Board in January 2014, after effective 4 July 2014. He joined Chief Financial Officer Mr Aiken was appointed to the being appointed as a Non‑Executive Newcrest in January 2014, Mr Bond was appointed to the Board Board in April 2013. He is Chairman Director in August 2013. Mr Hay as an Executive Director and as an Executive Director in February of the Safety and Sustainability is also the Chairman of the Chief Operating Officer. 2012, after joining Newcrest as Committee and a member Nominations Committee. Finance Director and Chief Financial of the Human Resources and Skills, Experience and Expertise Officer in January 2012. Remuneration Committee and Skills, Experience and Expertise Mr Biswas was previously Chief the Nominations Committee. Mr Hay has a strong background and Executive Officer of Pacific Skills, Experience and Expertise breadth of experience in business, Aluminium, a wholly owned subsidiary Mr Bond has experience in the global Skills, Experience and Expertise corporate law, finance and within the Rio Tinto group, which financial and resources industry with Mr Aiken has extensive Australian investment banking advisory work, incorporated the bauxite, alumina, BHP Billiton, Coopers & Lybrand and international business with a particular expertise in relation refining and smelting operations in and Price Waterhouse. Prior to joining experience, principally in the to mergers and acquisitions. He has Australia and New Zealand. He began Newcrest, Mr Bond was with engineering and resources sectors. also had significant involvement his career with Mount Isa Mines, BHP Billiton for over 14 years where He was Group President Energy in advising governments and working in both Australia and Europe. he held a number of senior executive BHP Billiton, President government‑owned enterprises. Mr Biswas has also worked for roles in Europe and Australia, BHP Petroleum, Managing Director Mr Hay was a partner of the legal Western Mining Corporation in including in Mergers and Acquisitions, BOC/CIG, Chief Executive firm Freehills until 2005, where Australia and Rio Tinto in Canada Treasury, as Deputy CFO of the of BTR Nylex and Senior Advisor he served as Chief Executive and Australia. He has experience Aluminium business, CFO and then Macquarie Capital (Europe). Officer from 2000. in research, operations, business Acting President of the Nickel Current Listed Directorships development and projects, across business, and as BHP Billiton’s Current Listed Directorships • Chairman of Aveva Group plc commodities including aluminium, Head of Group Human Resources. • Chairman of Vicinity Centres (from 2012) copper, lead, zinc and nickel. (from 2015) • Chairman of Balfour Beatty plc Other Current Directorships/ (from 2015) Other Current Directorships/ Appointments Appointments • Director of the Minerals Former Listed Directorships • Director of Australian Institute Council of Australia (last three years) of Company Directors (AICD) • Senior Independent Director • Member of AICD Corporate of Kazakhmys plc (2008–2013) Governance Committee • Senior Independent Director • Member of the Australian of Essar Energy plc (2010–2014) Government Takeovers Panel • Director of Essar Oil Limited (a listed subsidiary of Essar Former Listed Directorships Energy plc) (2010–2014) (last three years) • Director of GUD Holdings • Director of National Grid plc Limited (2009–2015) (2008–2015) • Director of Novion Limited (2014–2015) • Director of Alumina Limited (2002–2013) • Director of Australia and New Zealand Banking Group Limited (2008–2014) • Director of Myer Holdings Limited (2010–2014)

(2) As at 1 October 2016. 8

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

BOARD OF DIRECTORS(2) continued

ROGER HIGGINS LADY WINIFRED KAMIT RICK LEE AM BE (Civil Engineering) (Hons), BA, LLB, 63 BEng (Chemical) MSc (Hydraulics), PhD (Water Independent (Hons), MA (Econ) Resources), Stanford Executive Non‑Executive Director (Oxon), FAICD, 66 Program, FIEAust, FAusIMM, 65 Lady Kamit was appointed Independent Independent to the Board in February 2011. Non‑Executive Director Non‑Executive Director She is a member of the Human Mr Lee was appointed to the Board Dr Higgins was appointed to the Resources and Remuneration in August 2007. He is Chairman Board in October 2015. He is Committee and the Safety and of the Human Resources and a member of the Safety and Sustainability Committee. Remuneration Committee Sustainability Committee. and a member of the Audit Skills, Experience and Expertise and Risk Committee. Skills, Experience and Expertise Lady Kamit has extensive business Dr Higgins brings extensive experience and broad community Skills, Experience and Expertise experience leading mining companies knowledge of Papua New Guinea. Mr Lee has extensive resources, and operations, and has deep working She is currently a consultant at banking, finance and international knowledge of Papua New Guinea Gadens Lawyers in Port Moresby commercial experience. His previous as a current Non-Executive Director and was formerly a senior partner senior executive roles include and a former Managing Director of at that firm. Lady Kamit was 16 years with CSR Limited and nine Ok Tedi Mining Limited in Papua New a Director of Lihir Gold Limited years as Chief Executive Officer Guinea. In his most recent executive from 2004 until 2010. of NM Rothschild Australia Limited. position, Dr Higgins served as Senior He is a former Chairman of the Current Listed Directorships Vice President, Copper at Canadian Australian Institute of Company • Director of Steamships Trading metals and mining company, Teck Directors and C. Czarnikow Limited Company Limited (from 2005) Resources Limited. Prior to this role and is a former Non‑Executive he was Vice President and Chief Other Current Directorships/ Director of CSR Limited. Operating Officer with BHP Billiton Appointments Current Listed Directorships Base Metals Customer Sector Group • Chairman of ANZ Banking • Chairman of Oil Search working in Australia and also held Group (PNG) Limited Limited (Director from 2012, senior positions with BHP Billiton • Director of Post Courier Limited Chairman from 2013) in Chile. He also holds the position • Director of South Pacific • Chairman of Ruralco Holdings of Adjunct Professor with the Post Limited Sustainable Minerals Institute, Limited (from 2016) University of Queensland. Former Listed Directorships Current Listed Directorships (last three years) • Director of Minotaur Exploration • Chairman of Salmat Limited Limited (from 2016) (2002–2013) (Chairman from 2002, Lead Independent • Director of Metminco Director from 2013) Limited (from 2013) • Deputy Chairman of Ridley Other Current Directorships/ Corporation Limited Appointments (2001–2013) (Director • Director of Ok Tedi Mining from 2001, Deputy Limited (Non-Executive Chairman from 2006) Director from 2014, Managing Director 1997–2002) • Chairman of the International River Foundation (from 2014)

Former Listed Directorships (last three years) • Blackthorn Resources Limited (2014)

(2) As at 1 October 2016. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 9

XIAOLING LIU VICKKI MCFADDEN JOHN SPARK BEng (Extractive Metallurgy), BComm, LLB, 57 BComm, FCA, MAICD, 67 PhD (Extractive Metallurgy), Independent Independent GAICD, FAusIMM, 60 Non‑Executive Director Non‑Executive Director Independent Ms McFadden has been appointed Mr Spark was appointed to the Non‑Executive Director as Non-Executive Director of Board in September 2007. He is Dr Liu was appointed to the Board the Board and a member of the Chairman of the Audit and Risk in September 2015. She is a Audit and Risk Committee Committee and a member member of the Human Resources effective from 1 October 2016. of the Nominations Committee. and Remuneration Committee, the Skills, Experience and Expertise Skills, Experience and Expertise Safety and Sustainability Committee Ms McFadden has broad experience Mr Spark has an extensive background and the Audit and Risk Committee. in finance and law and is an in company reconstruction, Skills, Experience and Expertise investment banker with considerable accounting, profit improvement and Dr Liu has extensive executive experience in corporate finance financial analysis. He is a registered experience in leading global mining transactions, having served as company auditor and former and processing businesses. Her last Managing Director of Investment Managing Partner of Ferrier Hodgson, executive role was as President and Banking at Merrill Lynch in Australia Melbourne. He is a former Director Chief Executive Officer of Rio Tinto and as a Director and Principal of ANL Limited, Baxter Group Minerals based in Denver, where she of Centaurus Corporate Finance. Limited and Macarthur Coal ran integrated mining, processing Vickki has extensive experience Limited and former Chairman and supply chain operations in the in several roles as Member or of Ridley Corporation Limited. United States, Europe and Asia. Chairman of Audit Committees. Former Listed Directorships Prior to her last executive role, Current Listed Directorships (last three years) Dr Liu held senior management • Tabcorp Holdings Limited • Chairman of Ridley Corporation and operational roles at Rio Tinto (from 2016, subject to receipt Limited (Director from 2008, throughout her career including of necessary regulatory and Chairman from 2010–2015) President – Primary Metal Pacific, ministerial approvals) Managing Director – Global Technical Services and General Other Current Directorships/ Manager Bell Bay Smelter. Appointments • Chairman of eftpos Australia Current Listed Directorships Payments Pty Ltd (from 2016) • Director of Iluka Resources Limited (from 2016) • Director of Myer Family Investments Pty Ltd (from 2011) Other Current Directorships/ • President of the Australian Appointments Government Takeovers Panel • Director of Melbourne (Member from 2008, President Business School (from 2016) from 2013) • Member of the Advisory Board and Executive Committee of the UNSW Business School (from 2006)

Former Listed Directorships (last three years) • Chairman of Skilled Group Limited (Director from 2005, Chairman from 2010–2015) • Director of Leighton Holdings Limited (2013–2014) 10

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

EXECUTIVE COMMITTEE(2)

SANDEEP BISWAS GERARD BOND CRAIG JONES PHIL STEPHENSON BEng (Chemical) (Hons) BComm, Graduate Diploma BEng (Mechanical) Bsc, Graduate Diploma Managing Director and Applied Finance and Investment, Executive General Manager – Mineral Processing Technology Chief Executive Officer Chartered Accountant, F Fin Cadia & MMJV Executive General Manager – Sandeep was appointed Managing Finance Director and Craig is responsible for Cadia and Gosowong & Telfer Director and Chief Executive Officer Chief Financial Officer the Morobe Mining Joint Venture Phil is responsible for the in July 2014. He joined Newcrest in Gerard joined Newcrest as Finance (which includes the Golpu project) Gosowong and Telfer operations January 2014 as an Executive Director and Chief Financial Officer in Papua New Guinea. and Asset Management. Director and Chief Operating Officer. in January 2012 and was appointed Craig joined Newcrest in 2008 and Phil joined Newcrest in 2014 to the Board in February 2012. Sandeep was previously Chief has held various senior management as General Manager – Health, Safety, Executive Officer of Pacific Gerard has experience in the global and executive roles including Environment and Security. He has Aluminium, a wholly owned financial and resources industry General Manager – Projects, extensive international mining subsidiary within the Rio Tinto with BHP Billiton, Coopers & General Manager – Cadia, operations experience, with group, which incorporated the Lybrand and Price Waterhouse. Executive General Manager – 29 years in the industry working bauxite, alumina, refining and Prior to joining Newcrest he was Projects and Asset Management, for some of the world’s largest smelting operations in Australia and with BHP Billiton for over 14 years Executive General Manager – mining companies including New Zealand. He began his career where he held a number of senior Australia and Indonesian Operations Newmont Mining Corporation, with Mount Isa Mines, working in executive roles in Europe and and most recently Executive General Barrick Gold Corporation and both Australia and Europe. Sandeep Australia, including in Mergers and Manager – Australian Operations Placer Dome Inc. has also worked for Western Mining Acquisitions, Treasury, as Deputy and Projects. Prior to joining Corporation in Australia and CFO of the Aluminium business, Newcrest, Craig worked in projects Rio Tinto in Canada and Australia. CFO and then Acting President at Rio Tinto. He has experience in research, of the Nickel business, and was operations, business development BHP Billiton’s Head of Group and projects, across commodities Human Resources. including aluminium, copper, lead, Gerard is a Fellow of the Financial zinc and nickel. Services Institute of Australia. Sandeep is a Director of the Minerals Council of Australia.

(2) As at 1 October 2016. On 19 October 2016, the Company announced a number of changes to its Executive Committee, which are effective 1 January 2017. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 11

MICHAEL NOSSAL FRANCESCA LEE IAN KEMISH AM MBA (Finance), BSc BComm, LLB (Hons), LLM, BA (Hons), Graduate Diploma Ed Chief Development Officer Graduate Diploma CSP, AGIA Executive General Manager – Mike joined Newcrest in July 2015 General Counsel and Public Affairs and Social Performance with responsibility for Business Company Secretary Ian joined Newcrest in May 2016 Development, Projects and Studies, Francesca joined Newcrest as with responsibility for government Exploration, Minerals Resource General Counsel and Company relations, social performance Management and West African Secretary in March 2014. and media. operations and regional growth. She was General Counsel and Prior to joining Newcrest Ian led Prior to joining Newcrest, Mike was Company Secretary of OZ Minerals ExxonMobil’s external relations at MMG where, for five years, he was Limited from 2008 until 2014, in Asia–Pacific. This followed Executive General Manager Business and its antecedent companies from an extensive foreign service career, Development. He has over 25 years’ 2003. Francesca has more than including as Australian High resource industry experience in 30 years’ experience working across Commissioner to PNG, Ambassador Australia and internationally and various senior legal and commercial to Germany, head of the Prime has worked extensively in the gold roles within the mining industry Minister’s international division, sector and base metals with En+ including BHP Billiton, Rio Tinto and leader of the consular service. Group, Macquarie Bank, WMC Limited and Comalco Limited, Ian is a Board Member of the Resources, Normandy Mining including as General Manager Australia-Indonesia Centre, an Adjunct and Kenmare Resources. Internal Audit and Risk at Rio Tinto Associate Professor at the University Limited. She also spent several Mike is a member of the Institute of Queensland, and a Fellow of the years as Vice President Structured of Directors (UK). Lowy Institute for International Finance with Citibank Limited. Affairs. He was awarded membership Francesca was a member of the of the Order of Australia for his Australian Government Takeovers leadership of Australia’s response Panel from 2009 until March 2015. to the 2002 Bali bombings. 12 of anew agreementbetween allthe commissioned to coincidewiththesigning In thisinstance,thebaselinestudy hasbeen study, whichwillbecompletedinFY2017. Telfer hasrecentlycommissionedabaseline mine development plan.For example, life ofmineatsignificanttimeswithinthe Baselines areundertaken throughoutthe expectations canbeaddressed. social policy. Through thisform ofdialogue, the development ofappropriateandrelevant anticipations andconcernsnecessarytoguide of expectations and,importantly, local consultation, provides theunderstanding challenges. These studies,alongwithextensive stakeholders, theirpolitics,history, cultureand the natureofnational,regionalandlocal which provides abasisfor understanding targeted, periodiccommunitybaselinestudies, At eachoperating site,Newcrest commissions and consideration. issues toassistwithinformed discussion seeks toparticipateandcontributeonrelevant are criticaltoanyreform processandNewcrest and reforms. Proper consultationprocesses government andotherstakeholders onpolicy PNG ChamberofMinesandPetroleum) with such astheMinerals CouncilofAustralia and indirectly (for example, throughindustrygroups We alsoactively engagebothdirectlyand and ouractions. them tobetterunderstandourperspective realities thatdrive ourbusiness,thushelping investment activityandthecommercial educating peopleonthescaleofoursocial stakeholders onincreasingawareness and or indirectly. We continuetowork withour building activitywe undertake orfunddirectly full range ofcommunityinvestment orcapacity Many ofourstakeholders areunaware ofthe develop mutually-compatibleoutcomes. respecting otherpointsofview andaimto responsibility. We engageconstructively, economic, environmentalandsocial This cancover awiderange ofareas,including views about,andexpectations of, ouractivities. that different stakeholders have differing where we operate withtheunderstanding governments andcommunitiesintheareas Newcrest proactively engageswith AND TRANSPARENTLY CONDUCTING BUSINESSETHICALLY Governance, ethicsandtransparency CEO THE FROM MESSAGE OUR APPROACH WE ARE WE WHO THIS REPORT ABOUT

IN REVIEW THE YEAR

of concernandgeneral industryconditions. key stakeholders toidentifyandexplain matters with seniorgovernment membersandother presence ineachjurisdictiontomaintaindialogue and regulations,Newcrest maintainsasenior developments tendtobereflectedinlegislation Government expectations ofresource concern for thecommunity.’ and traffic relatedimpactsarestillakey have improved; however, roadinfrastructure Overall impactandperformance ratings in theefficacyofcomplaintsprocess. basis; andtherehave beenimprovements consultation processesandonadayto takes theirconcernsseriously, bothduring number ofthecommunityfeel thatCadia communications fromCadia;anincreasing are highlysatisfiedwiththefrequencyof since the2010survey. Cadia’s neighbours it neighboursarepositive andhave improved that ‘onbalance,relationsbetween Cadiaand the reportingperiod. The Survey reports Sentiment Survey was conductedduring 44 and46).AlsoatCadia,aCommunity stakeholders (furtherdiscussedonpages we dobusiness. rights procedures andclausesintotheway the integration ofadditional relevant human business relationshipsand,where necessary, internal proceduresandprocesses, external Policies isareview oftheCompany’s various process oftheHumanRightsandSecurity Diversity Policy. Part oftheimplementation as well astheNewcrest CodeofConductand in ourHumanRightsandSecurityPolicies, of theway we dobusiness andisembedded Respect for humanrightshasalways beenpart the CommunitiesPolicy. is alsosupportedby theSecurityPolicy and across allofourbusinessinterests. This Policy commitment, implementationandaccountability that thereisconsistencywith ensure to reporting period. The Policy isintended continued itsimplementationduringthe Newcrest hasaHumanRightsPolicy and our businesswillnotbetolerated. other personsorgroupsassociatedwith by ouremployees, contractors and/orany human rights.Humanrightsviolations stakeholders andlocalcommunitiestopromote operations, andwillengageindialoguewith rights abusesoccurringinthevicinityofour to useourinfluenceprevent human contractors andlocalcommunities. We seek all stakeholders, includingouremployees, Newcrest respectsthehumanrightsof HUMAN RIGHTS

PEOPLE OUR

PERFORMANCE ECONOMIC

PERFORMANCE SOCIAL

continued

Jointventure employees. * FY2016 (%) in humanrightspoliciesorprocedures employed securitypersonneltrained Graph 1:Percentageofdirectly personal andprofessional lives. understand theconnectionbetween their Productive Workplace’, ishelpingemployees Trupla Meri’s tagline,‘Happy Home=Safe, amongst, ourlocalworkforce. Trupla Man resonated with,andhadbetterunderstanding message ofthe Trupla Man Trupla Meri campaigns. Itwas found thatthepositive its effectiveness, comparedtoother a baselinesurvey tomonitorandmeasure In March2016,thecampaignconducted and speakoutagainstallforms ofviolence. empower ourworkforce toshiftbehaviour was launchedinSeptember2015tohelp campaign, called Trupla Man Trupla Meri, At Lihir, ananti-violence,behaviour-change in Newcrest’s SustainabilityReport. by ouractivities’. This isreportedonannually employees andotherswhoareaffected cultures, customsandvalues indealingswith ‘uphold fundamentalhumanrightsandrespect includes acommitmentinprinciplethreeto and Metals(ICMM)Principles. The ICMM based ontheInternationalCouncilMining Enduring Value Framework. This Framework is Australia (MCA), Newcrest isasignatorytothe As amemberoftheMinerals Councilof in Columbiaon20–21April2016. participant intheannual VPI Plenarymeeting VPI working groupcallsandwas anactive Newcrest isaregularparticipantinvarious including thetraining ofoursecuritypersonnel. Progress ontheactionplansisproceeding, for alloverseas operations andprojects. Newcrest completedabaselineassessment Security andHumanRightsInitiative (VPI), As amemberofthe Voluntary Principles on

Bonikro 100 STEWARDSHIP ENVIRONMENTAL

Cadia 100

Gosowong 100

Hidden Valley* 96 TABLES DATA Lihir 100

Telfer 100

Wafi-Golpu* 100 STATEMENT ASSURANCE

• • • • • • • • • • • the following: Relevant policiesandstandardsinclude way Newcrest behaves andoperates. policies andstandardswhichgovern the together thecomprehensive range of The Company’s CodeofConductdraws the communitiesinwhichNewcrest operates. has beentranslated intothelanguagesof online CodeofConducttraining modulethat the reportingperiod,Newcrest updatedits on Newcrest’s website andintranet. During It isavailable inprintedandelectronicformats accessible toallemployees andcontractors. Newcrest hasmadetheCodeofConduct provide thebasisfor ourCodeofConduct. from everyone whoworks for Newcrest and These values shapethebehaviourswe expect solving, andstrivingfor highperformance. together, valuing innovation andproblem acting withintegrityandhonesty, working guided by ourvalues ofcaringaboutpeople, its relationshipswithstakeholders. We are that underpinallofNewcrest’s behavioursand Newcrest’s CodeofConductreflectsthevalues CODE OFCONDUCT Workplace BehaviourStandard Sponsorship Policy Speak OutStandard Securities DealingPolicy Safety andHealthPolicy International Employees Policy Functions Standard Gifts, Entertainmentand Donations Policy Diversity Policy Communities Policy Anti-Bribery andCorruptionPolicy

inCorporate Offices. Exploration employees included * and proceduresasat30June2016(%) includes aunitofanti-corruptionpolicies undertaken codeofconducttrainingthat Graph 2:Percentageofemployeesthathave policies that deal with anti-bribery and policies thatdealwithanti-briberyand personnel onhow tocomplywithNewcrest’s provides helpfulinformation for Newcrest and Corruptionportal. The new portalpage Newcrest establishedanew Anti-bribery new jointventure. Duringthereportingperiod, interest inathirdpartyentityorentersinto is undertaken before Newcrest acquiresan corruption lawsandappropriateduediligence comply withapplicableanti-briberyand understood. Allsuppliersarerequiredto provides training toensurethey are and contractors areclearandNewcrest and functions. The obligationsfor employees standard regardinggifts,entertainment and CorruptionPolicy, aswell asitsCompany Newcrest’s CodeofConductandAnti-Bribery Newcrest’s positiononbriberyisincludedin and inallthejurisdictionswhichwe operate. entities withintheNewcrest groupofcompanies standards. This appliestoallpersonsand Bribery andCorruptionPolicy andrelated under Newcrest’s CodeofConduct,Anti- improper influencearestrictlyprohibited of exercise breach ofsanctionlaws,and laundering, paymentofsecretcommissions, Activities involving bribery, corruption,money ANTI-BRIBERY ANDCORRUPTION Bonikro 95.6

Cadia 94.7

Gosowong 98.7

Lihir 91.6

Telfer 95.0

Corporate* 92.4

00

00

00

NEWCREST MINING LIMITED SUSTAINABILITYNEWCREST REPORT 2016 corruption assignificantriskstothebusiness. audit planidentifiesbribery, fraud and and briberyacrossthebusiness. The internal instances ofactualorpotentialcorruption processes inplacetoidentifyandinvestigate Newcrest hasinternalauditandother corruption andlawsprohibitingbribery. Bonikro risks  Table 1:Operations analysedfor organisational from theresourcesectortogovernment. the flow ofrevenues andbenefitsgenerated Guinea) toimprove transparency in (namely Indonesia,Côted’Ivoire andPapua New of EITImembercountrieswherewe operate to supporttheefforts ofgovernments from natural resources.Newcrest continues and accountablemanagementofrevenues working togethertoimprove openness governments, companiesandcivilsociety Initiative (EITI),aglobalcoalitionof of theExtractive Industries Transparency Newcrest becameaSupportingMember transparency inbusinessdealings.In2013, conducting business,inamannerthatpromotes Newcrest actswithintegrityandhonestywhen TRANSPARENCY Hidden Valley Gosowong Cadia Telfer Lihir relating tocorruptionduringFY2016

13 14

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Mission, vision and values During the year, Newcrest released a new mission and vision statement, outlining our purpose, aspiration for the future and our roadmap for forging a stronger Newcrest.

Caring about people is a core value for Newcrest. Our clear focus remains on eliminating fatalities and life-altering injuries from our business, while striving to make continual progress on reducing all injuries and health impacts. We believe that a strong commitment to health and safety improvement will yield benefits for our workforce and for overall business performance.

Forging a stronger Newcrest

Our Mission We Value... To deliver superior returns from finding, devloping and operating gold/copper mines.

Our Vision Caring about Integrity and Working Innovation and High- people honesty together problem solving performance To be the Miner of Choice.TM We will lead the way in safe, responsible, efficient and profitable mining. We achieve superior results through... Our Edge A high performance, no-nonsense culture focused on: Employee Personal Bottom-up Operational involvement ownership innovation discipline • Safety • Operational discipline • Cash • Profitable growth We deliver on our commitments. Shared Inspirational Talent vision leaders development NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 15

About This Report This is Newcrest Mining Limited’s 15th Sustainability Report and our second that is in accordance with the Global Reporting Initiative (GRI) G4 framework. We report on our sustainability performance annually.

Waste rock dumps, Telfer. 16

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Summary

Our report (3) in accordance with GRI’s ‘core’ INDONESIA RESTATEMENTS level reporting intends to provide a vehicle by which we may communicate our • Gosowong, comprising Kencana On 31 December 2015, Newcrest commenced environmental, social and governance Underground and Toguraci Underground reporting financials in US dollars. As a result, performance to our stakeholders. (Halmahera Island, North Maluku) (PT Nusa our year-on-year financials have been restated Halmahera Minerals, an incorporated joint on pages 60 and 61 of the report. This year, our report covers all of Newcrest’s venture company between Newcrest operations globally, including joint venture (75 percent) and PT Aneka Tambang FEEDBACK ON THIS REPORT projects, for the period 1 July 2015 through (25 percent)). to 30 June 2016. There has been no significant For any comments or enquiries about change in the scope of the report since last year. CÔTE D’IVOIRE this report, or our sustainability reporting process, please email Newcrest at AUSTRALIA • Bonikro (owned 89.9 percent Newcrest), [email protected]. comprising the Bonikro (6) and Hire Open Pit Newcrest’s approach to identifying its material • Telfer Open Pit and Telfer Underground and the nearby Dougbafla deposit. (Western Australia). sustainability aspects is based on the In addition, this report covers Newcrest’s major AccountAbility AA1000 Assurance Standard • Cadia (4), comprising Cadia East advanced exploration activities, including: (2008) principle of materiality that requires Underground mine (New South Wales). • Wafi-Golpu (Papua New Guinea) (Wafi-Golpu that ‘the reporting organisation has included in its public report adequate information PAPUA NEW GUINEA Joint Venture, one of three unincorporated joint ventures between subsidiaries about its sustainable performance for its • Lihir (New Ireland Province). of Newcrest (50 percent) and Harmony stakeholders to be able to make informed • Hidden Valley (5) (Morobe Province) Gold Mining Company Limited. judgements, decisions and actions’. It also takes account of the GRI’s Reporting Principles (Hidden Valley Joint Venture, one of three • Namosi (Fiji) (Namosi Joint Venture, for Defining Report Content, in relation to unincorporated joint ventures between an unincorporated joint venture between stakeholder inclusiveness, sustainability subsidiaries of Newcrest (50 percent) and Newcrest (70.67 percent), Nittetsu Mining context, materiality and completeness. Harmony Gold Mining Company Limited Co. Ltd and Mitsubishi Materials). collectively described as the Morobe Mining Joint Ventures). Currency figures are reported in US dollars unless otherwise stated.

(3) These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘continue’, ‘outlook’ and ‘guidance’, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs. The Company continues to distinguish between outlook and guidance in forward looking statements. Guidance statements are a risk-weighted assessment constituting Newcrest’s current expectation as to the range in which, for example, its gold production (or other relevant metric), will ultimately fall in the current financial year. Outlook statements are a risk-weighted assessment constituting Newcrest’s current view regarding the possible range of, for example, gold production (or other relevant metric) in years subsequent to the current financial year. Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation. Forward looking statements are based on the Company and its Management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or Management or beyond the Company’s control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based. (4) The Ridgeway Underground mine was placed in care and maintenance during the reporting period. (5) Subsequent to the reporting period, Newcrest sold its 50 percent interest in the Hidden Valley mine, as announced on 19 September 2016 and 27 October 2016. (6) Bonikro Open Pit was placed in care and maintenance during the reporting period. Note: All sites are 100 percent Newcrest owned unless otherwise specified. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 17

Report development

MATERIALITY ANALYSIS Figure 1: Newcrest FY2016 sustainability aspects AND ASSESSMENT In line with the GRI G4 guidance, we mapped Our material aspects identification process for the boundaries of these aspects against this report was guided by AccountAbility’s Five Newcrest’s sites, including operations, projects Part Materiality Test, which seeks to identify and exploration sites (see Table 2) and High and prioritise sustainability-related aspects identified the impact boundaries in relation that are relevant to: direct short-term financial to Newcrest’s key stakeholders across its impacts; policy-related performance; business value chain (see Table 3, below). This informs peer-based norms; stakeholder behaviour the scope and content of the narrative in this and concerns; and societal norms. Across these Medium report and, in combination with developing five parts, we considered information from clear definitions for each material aspect, various sources, including internal documents helps ensure that the report is focused upon, Low and reports, media research, peers, industry and responding to, what is of most interest and NGO reports, and internal and external Level of importance to stakeholders and concern to our key stakeholders. stakeholder interviews. We built upon last year’s materiality assessment to include Level of importance to Newcrest broader engagement with our external stakeholders (drawing upon our key stakeholder Table 2: Issues of highest importance to Newcrest and its stakeholders and their impacts groups outlined in the following section). across Newcrest sites in FY2016 These included industry body representatives, non-government organisations, analysts, Issues of Highest Importance Sites Impacted government representatives, suppliers and shareholders. Conducting business ethically and transparently All operations, projects and exploration sites

An independent consultant was commissioned Ensuring employee and contractor health and safety All operations, projects and exploration sites to consolidate this information into key aspects, calculating and prioritising each Managing our people and their capabilities All operations, projects and exploration sites aspect based on clearly defined criteria to Productivity, financial sustainability and growth All operations, projects and exploration sites identify the importance of each topic as it related to Newcrest and its shareholders. Local community development and investment All operations, projects and exploration sites Each aspect was then classified as either ‘high’, ‘medium’ or ‘low’ importance, and Water management All operations, projects and exploration sites were plotted in Figure 1. Closure planning All operations, projects and exploration sites A workshop was held with Newcrest management to present and discuss the findings Waste and tailings management All operations, projects and exploration sites from the materiality assessment process and to validate the ratings of the identified aspects as they related to Newcrest by confirming Table 3: Identification of stakeholder groups impacted across Newcrest’s value chain the appropriateness of the associated material rankings. Value Chain Stage Location Stakeholder Groups Impacted

Exploration Australia, Papua New Guinea, Employees and contractors, local communities, Indonesia, New Zealand, government and regulators, industry Côte d’Ivoire, Fiji

Project Wafi-Golpu, Papua New Guinea; Shareholders, employees and contractors, Namosi, Fiji local communities, suppliers, government and regulators, NGOs, education and research, media, civil society

Operation Lihir and Hidden Valley, Papua Shareholders, employees and contractors, (mining, milling New Guinea; Cadia and Telfer, local communities, suppliers, government and concentrating) Australia; Gosowong, Indonesia; and regulators, NGOs, civil society, customers Bonikro and Hiré, Côte d’Ivoire

Smelting Japan, Philippines, Korea, Shareholders, suppliers, government and (copper concentrate) China, India regulators, NGOs, civil society, customers

Refining Australia, Indonesia, Shareholders, suppliers, government and (gold doré) Switzerland regulators, NGOs, civil society, customers 18

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Report development continued

STAKEHOLDER ENGAGEMENT Newcrest is a multi-site, culturally diverse and highly visible company, with a broad range and depth of stakeholders that we need to communicate with and respond to, if we are to be successful. Our engagement with stakeholders focuses on constructive dialogue, seeking feedback, and understanding and respecting other points of view. While we look to better engage with our stakeholders, we also respect their wish to engage us on their terms. Our key relationships are managed by specific Newcrest personnel, teams or departments, with varying methods and frequencies of engagement, depending on the nature and formality of the relationship with the stakeholder concerned. Formal and informal processes are used by Newcrest to develop and maintain relationships, to keep stakeholders informed of business outcomes and future plans, and to explore stakeholder issues and concerns. Any serious stakeholder concerns or key opportunities are brought to the attention of our Executive Committee and/or management team. Our stakeholder engagement processes are summarised in the following table.

Table 4: Key stakeholders and methods of engagement

Stakeholder Group Types of Stakeholders Engagement Approach Areas of Interest

Shareholders Shareholders, analysts • Annual reports, quarterly production reports, half-yearly • Safety performance financial reporting • Asset performance • Website and email, investor briefings, one-on-one discussions • Executive remuneration • Investor days • Equity raising and debt • Conference calls • Community relations • Market announcements • Annual General Meeting (also webcast)

Employees and Executive Committee, • Employee briefings • Job security Contractors site management teams, • Intranet, email, newsletters, social events, notice boards, • Operational performance employees, contractors departmental site and toolbox meetings, performance reviews • Safety and environmental • Site General Manager town hall meetings performance • Speak-out service • Site-localised media stories • Direct engagement between people leaders and their teams • Organisational Health Survey participation

Local Local residents, Indigenous • Community relations team visits • Impact on, and relations Communities communities, landowners • Resident/community meetings with, communities • Site visits • Land use agreements • Regular communication with leaders and community generally, • Environmental impacts providing feedback forums • Community benefits • Complaints and grievance mechanisms agreements • Sponsorships and partnerships • Compensation agreements • Collaborative agreements • Media engagement on localised initiatives • Community newsletters • Websites

Suppliers Local suppliers, • Collaborative guidelines • Impacts from industry non-local suppliers • Out to market approaches downturn and instilling • Open and collaborative face-to-face engagement and discussions operational efficiency • Regular performance meetings • Contractual agreements

Government Australian federal, state • Open and collaborative face-to-face engagement • Royalty fees and and Regulators and local government, Papua • Quarterly updates in Asia and Pacific regions Indigenous agreements New Guinea national, provincial, • Annual reports, website and email, compliance audits • Safety performance local government, Côte d’Ivoire and inspections • Employment government, Indonesian • Regulatory submissions • Proposed changes in government, Fijian government, • Direct engagement on matters of local importance legislation and regulations Department of Foreign Affairs • Industry body involvement and Trade, WorkSafe, other • Media engagement on localised initiatives government departments as appropriate in each jurisdiction NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 19

Community engagement at Cadia and Lihir.

Table 4: Key stakeholders and methods of engagement continued

Stakeholder Group Types of Stakeholders Engagement Approach Areas of Interest

Industry Mining and metals industry, • Meetings, reports and discussions around the specific • Industry downturn non-mining and metals industry, considerations of mining and considerations for policy • Environmental impacts business and professional • Reports, face-to-face discussions, presentations, • Safety performance associations, local country and collaborative agreements • Mental health regional business associations

Non-government Environmental, • Meetings, reports, face-to-face discussions • Impacts to people, organisations community, mining • Site visits communities and (NGOs) • Exploring collaborative opportunities the environment • Bribery, corruption and disclosure of payments

Education Research institutions, tertiary • Conference attendance • Promoting training and Research and vocational institutes • Meetings, reports, face-to-face discussions in resources area

Media National business • Media briefings • Lihir turnaround media, localised media • Day-to-day enquiries • Operational performance (site and country) • Site visits • Growth strategies • News stories/media releases • Safety performance • Newcrest website • Social development issues

Civil Society General public • Newcrest website • Impacts to people, • Reports communities and • Feedback tools the environment • Sponsorships and partnerships • Safety and environmental performance • Industry downturn

Customers Smelters, refineries • Meetings • Terms and conditions • Reports of contracts • Face-to-face discussions • Maintaining • Site visits of relationships

ASSURANCE This year, Ernst & Young provided independent limited assurance over certain elements of our report in accordance with the International Federation of Accountants’ International Standard for Assurance Engagements Other Than Audits or Reviews of Historical or Financial Information, and the requirements of a Type 2 assurance engagement under Accountability’s AA1000 Assurance Standard (2008) as per our assurance report. A copy of their Assurance Statement is located on pages 70 and 71. It is Newcrest’s intent to obtain independent assurance of the content of its sustainability reports, to enhance data accuracy and reader confidence. The limited assurance report discloses the scope and basis of the assurance provided. Newcrest seeks to ensure that no conflicts of interest exist when appointing any provider of assurance. 20

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

The Year In Review Newcrest continues its focus on sustainability through membership with the Minerals Council of Australia (MCA), the Voluntary Principles on Security and Human Rights Initiative (VPI), and as a supporting member of the Extractive Industries Transparency Initiative (EITI). We continue our progressive alignment to the International Council on Mining and Metals (ICMM) Sustainable Development Principles, and maintain and continue to seek out key memberships and affiliations with international bodies.

Environmental monitoring at Telfer. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 21

Global commitments

Newcrest engages with a broad number of • Institute of National Affairs, stakeholder groups and works with a number Papua New Guinea; of peak industry bodies in the jurisdictions • International Copper Association, Australia; where we operate. As at 30 June 2016, • International Cyanide Management Newcrest is affiliated with or a member Code (ICMI); of the following organisations: • International Network for Acid • Australia Fiji Business Council; Prevention (INAP); • Australia Papua New Guinea • International Tungsten Industry Association; Business Council; • Lae Chamber of Commerce; • Australian Investor Relations Association; • Major Employers Association – • Australian Mines and Metals Association; Confédération Géneralé des Enterprises • Australian Safety and de Côte d’Ivoire (CGECI); Compensation Council; • Minerals Council of Australia (MCA); • Bulolo Chamber of Commerce; • Mining Association – Groupement • Business Council of Australia (BCA); Professionels des Miniers de Côte • Business Council of Papua New Guinea; d’Ivoire (GPMCI); • Chamber of Commerce and Industry • New South Wales Minerals Council; of Côte d’Ivoire; • Papua New Guinea Chamber of Mines • Chamber of Commerce of France and Petroleum; in Côte d’Ivoire; • Port Moresby Chamber of Commerce; • Chamber of Minerals and Energy • Sustainable Minerals Institute (SMI) – of Western Australia; University of Queensland; • Corporate Tax Association of Australia; • Suva Chamber of Commerce and Industry; • Employers‘ Federation of Papua • Transparency International, New Guinea; Papua New Guinea; • Extractive Industries Transparency • Voluntary Principles on Security and Initiative (EITI); Human Rights; and, • Fiji Australia Business Council; • Western Australian Chamber of Mines. • Fiji Commerce and Employers Federation (FCEF); • Fiji Mining and Quarrying Council;

Sustainability performance

ENDURING VALUE Newcrest’s commitment to Enduring Value brings with it the following obligations: Newcrest is a member of the MCA and in May 2005 became a signatory to ‘Enduring Value – • progressive implementation of the ICMM the Australian Mining Industry Framework for principles and elements; Sustainable Development’. During the reporting • public reporting of site-level performance period, Newcrest renewed its commitment to at least once a year, with reporting metrics Enduring Value. self-selected from the GRI, the GRI Mining and Metals Sector Supplement Enduring Value adopts the ICMM Framework or self-developed; and, for Sustainable Development and provides • assessment of the systems used to manage implementation guidance in an Australian key operational risks. and international context. Newcrest continues to align its sustainability approach to the ICMM principles, as identified in the section below. 22

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Sustainability performance continued

ICMM ALIGNMENT Table 5: Newcrest’s alignment to the ICMM principles in FY2016

ICMM Principle Current Newcrest Alignment

1. Implement and maintain ethical Ethical business practice is a key part of Newcrest’s policies and practices. During the reporting period, we further business practices and sound enhanced the Anti-Bribery and Corruption Policy in May 2016 and the Code of Conduct in July 2015. The Code of systems of corporate governance. Conduct is binding for all Newcrest employees. Electronic compliance training has been implemented in relation to Code of Conduct, Anti-Bribery and Corruption, Continuous Disclosure and Securities Dealings. Details of Newcrest’s corporate governance statement and structure are provided in our 2016 Corporate Governance Statement, which is available on our website.

2. Integrate sustainable development Sustainable development considerations are integrated as part of the Company’s decision-making processes for considerations within the corporate project studies and investment decisions. While the Newcrest Board has ultimate accountability for our sustainability decision-making process. agenda, sustainable development matters are considered by a sub-set of the Newcrest Board, our Safety and Sustainability Committee. Our investment and project management decision-making processes include detailed consideration of sustainable development aspects. The Executive Committee also considers sustainable development aspects during monthly meeting updates on the status of key health safety, environment and community programs.

3. Uphold fundamental human rights The principles contained in the Newcrest Human Rights Policy have been migrated into the newly adopted Social and respect cultures, customs and Performance Standard and are also being integrated into the guidelines that will assist in the application across values in dealings with employees all Newcrest assets. The Social Performance Standard includes explicit commitments on key issues such as Free, and others who are affected Prior and Informed Consent, Resettlement and Gender. by our activities. Human Rights are also key to our internal employee Code of Conduct and to the manner in which Newcrest treats its own employees. During FY2016, Newcrest continued to implement the requirements of the Voluntary Principles on Security and Human Rights, including completion of a company-wide baseline review and security staff training.

4. Implement risk management Our Risk Management Framework is used to identify and evaluate risk events and establish controls and mitigation strategies based on valid data strategies. Risks considered in the process include strategic, corporate and commercial, major hazards (including and sound science. operational, health and safety, and environmental) and project management risks. Risk management strategies are developed based on assessments of control effectiveness, availability of data and consultation with internal and industry stakeholders.

5. Seek continual improvement of Our Safety and Health Policy includes a commitment to continual improvement. This year, we updated the Safety our health and safety performance. and Health Policy in line with our Safety Transformation Plan. In particular, our continual improvement efforts in relation to safety and health focused on cultural improvements through NewSafe, enhanced verification of critical controls in the workplace, and increased understanding and analysis of our process safety risks. Improvements were also progressed on programs for occupational hygiene monitoring of potential workplace exposures and control measures.

6. Seek continual improvement of Our commitment to continual improvement is embedded in our Environmental Policy. In the reporting period, our environmental performance. we continued to review our environmental standards and updated our environment strategy. Key programs during the reporting period also included closure plan reviews, implementation of the voluntary Cyanide Code at selected sites and Environmental Impact Studies for new projects.

7. Contribute to conservation Our Environmental Policy includes a commitment to the conservation of biodiversity and integrated approaches to of biodiversity and integrated land use planning. We are in the process of implementing management measures for flora and fauna of high biodiversity approaches to land use planning. value at our operations and proposed development projects. Biodiversity aspects are also a consideration during development of closure plans for our operations as part of integrated land use planning.

8. Facilitate and encourage responsible As our products are not directly sold on the retail market, our approach is primarily around managing potential product design, use, re-use, recycling impacts on the environment throughout the life cycle of our mining operations, including using resources efficiently and disposal of our products. and managing waste streams.

9. Contribute to the social, economic Community investment is a core element of Newcrest’s new Social Performance Standard which provides and institutional development of the a framework for assets to establish a locally and asset-appropriate basis for benefits to be provided to local communities in which we operate. communities impacted by the operation. Such benefits are rarely provided in cash, which is usually only paid out for compensation for personal loss, but are delivered in the form of programs through local institutions and business groups.

10. Implement effective and transparent Newcrest recognises that transparency of action and decision-making is the best defence against corruption engagement, communication and and maladministration. It also generates confidence in communities and greatly enhances relationships with local independently verified reporting communities and governmental agencies. arrangements with our stakeholders. These principles are built in to the Community Engagement plans and programs required under the Social Performance Standard. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 23

MATERIAL ISSUES The issues identified from our materiality assessment measured as ‘high importance’ to Newcrest and its stakeholders are the focus of this report. However, similar to our approach last year, we have continued to represent issues in this report that have been identified as those of ‘medium importance’. The table below identifies the sections of the report these issues are located. The following sections of the report cover these issues:

24 38 OUR PEOPLE ECONOMIC PERFORMANCE

42 50 SOCIAL ENVIRONMENTAL PERFORMANCE STEWARDSHIP

Table 6: Issues of high and medium importance to Newcrest and its stakeholders in FY2016

High importance Page in report Medium importance Page in report

Conducting business ethically and transparently 6 Human rights 12

Ensuring employee and contractor health and safety 25 Workforce diversity and equal opportunity 36

Managing our people and their capabilities 32 Managing government and community expectations, 46 managing broader socio-economic impacts across communities, and local community engagement

Productivity, financial sustainability and growth 39 Adapting to geopolitical and legislative changes 46

Local community development and investment 43 Local employment and procurement 47

Water management 51 Land acquisition and resettlement 49

Closure planning 53 Energy and climate change 56

Waste and tailings management 54

WHO WE ARE OUR PEOPLE ECONOMIC PERFORMANCE SOCIAL PERFORMANCE ENVIRONMENTAL STEWARDSHIP 24

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Our People At Newcrest, we value our people. We remain clearly focused on eliminating fatalities and life-altering injuries from our business. We also strive to build a sense of purpose and achievement among our people through encouraging the development of talented and motivated employees while becoming a more inclusive and diverse workforce.

Emma Pratten, Community Relations Officer at Cadia. Three f in every jurisdictioninwhichwe operate. requirements onoccupationalhealthandsafety Newcrest isalsocognisantofthelegislative on occupationalhealthandsafety programs. committees, whichhelpmonitorandadvise safety and joint management-worker health addition, theworkforce isrepresented in formal In as partofworkplace inductionprocesses. training onhealthandsafety policiesandpractices Each ofouroperations isresponsiblefor providing preventative andremediationmeasures. to identifyandimplementappropriate and incidentinvestigations areundertaken Health, EnvironmentandSafety System), incidents arerecordedinCHESS(Community, and provide assurance. Healthandsafety and supportingtoolstomonitorperformance System consistsofHSEstandards,guidelines Safety andEnvironment(HSE)Management least four timesperyear. The Newcrest Health, and SustainabilityCommittee,whomeetat performance areoverseen by ourBoard’s Safety Newcrest’s healthandsafety strategy andits overall businessperformance. will yieldbenefitsfor ourworkforce andfor commitment tohealthandsafety improvement and healthimpacts. We believe thatastrong continual progressonreducingallinjuries from ourbusiness,whilestrivingtomake in eliminatingfatalities andlife-altering injuries priority for Newcrest. Ourclearfocus remains The healthandsafety ofourworkforce isa Ensuring employee andcontractor healthandsafety OUR SAFETYVISION Ev erybody goinghomesaf OUR APPROACH through Ne saf 1. Buildastronger ocus areas: ety culture e andhealthy wSaf Supported bythe rightsystems andtools.

e

v

ery day

+ SAFETY • • • injuries. The planfocuses onthreekey pillars: help useliminatefatalities andlife-changing conducted acrosstheCompany, andaimsto independent investigations andreviews during 2015,supportedby extensive Our Safety Transformation Planwas developed the reportingperiod. our overriding businessimperative during Newcrest’s Safety Transformation hasbeen These fatalities areunacceptableand most heavilyonthoseclosesttothedeceased. felt acrossNewcrest, andespeciallytouches The painoftheselossescontinuestobe was killed whileworking undergroundatCadia. roadway, andinSeptember2015atechnician was killed whileoperating avehicle onamine an employee oftheHidden Valley Joint Venture employees were fatally injured.InJuly2015, Tragically, duringthefinancialyear, two ofour for overall businessperformance. will yieldbenefitsfor ourworkforce and commitment tohealthandsafety improvement and healthimpacts. We believe thatastrong continual progressonreducingallinjuries from ourbusiness,whilestrivingtomake eliminating fatalities andlife-changing injuries value for Newcrest. Ourclearfocus remainson The healthandsafety ofourworkforce isacore robust processsafety management. critical controlsfor every high-risktask;and, a strongsafety culture; OUR PERFORMANCE high-risk task controls forevery 2. Critical MEA

+ SURE OFSUCCESS

NEWCREST MINING LIMITED SUSTAINABILITYNEWCREST REPORT 2016 Zero f FY2013 Graph 4:NewcrestTRIFR FY201 Graph 3:NewcrestLTIFR FY2013 3.6 FY2013 0.4 atalities andlif

FY2014 3.1 FY2014 0.6 3 – – FY201 FY201

management p 3. Robust FY2015 3.6 FY2015 0.4 rocess saf 6 FY2016 3.7 FY2016 0.7 6 e alteringinjuries

ety

25 26

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Ensuring employee and contractor health and safety continued

NewSafe is the driving force behind our Our CCM system involves three levels of Between initial roll-out in February and the first pillar, a strong safety culture. It is about structured, regular checks at the management, end of the financial year, more than 900 people creating a workplace environment where we supervisor and operator levels. The first step in across Newcrest had been trained in the each choose to put safety first in everything Newcrest’s roll-out of CCM started in February CCM system, with more than 1,000 System we do for the benefit of ourselves and our work 2016 and involved the training and coaching Verifications and 7800 Field Critical Control mates. NewSafe involves Newcrest employees of managers and other front line leaders in how Checks completed.(7) and contractors through leadership workshops, to undertake the first level of checks – System The third pillar, robust process safety coaching in the field, and personnel committing Verifications. These are conducted to ensure management, aims to systematically and to a set of behaviours developed by our critical controls are established and healthy. comprehensively manage the integrity and employees for our employees. The roll-out and At this level, department managers and above containment of high-energy and toxic processes embedding of NewSafe continued at Telfer verify the management systems by reviewing to protect our people and the environment. and Cadia throughout the year, with NewSafe individual critical controls in detail to It applies a technical, engineering-focused launching in Exploration in November and ensure systems are properly designed approach, which adopts robust engineering at Gosowong in February. The engagement, and implemented. standards and controls across our operations. involvement and leadership shown by all levels The second level of checks, Field Critical of the business in the safety journey has been Together, these three pillars form the backbone Control Checks, aim to verify the effectiveness inspirational. Safety is owned by the line and of our plan. By channelling our efforts of the critical controls in the field. Supervisors tailored for the mine site and department by consistently and methodically into these three and above monitor high-risk tasks and major the people who best understand the specific areas, we believe we will go a long way towards hazards to ensure critical controls are challenges they face – the front-line employees. realising our vision for safety – the elimination implemented effectively. We launched this NewSafe will be introduced at Hidden Valley, of fatalities and life-changing injuries from part of the program in May 2016, at Telfer, Lihir and Bonikro in FY2017. our business. Lihir, Gosowong and Cadia and with our The second pillar of our safety transformation exploration team. In April, Newcrest updated its Safety is having critical controls for every high-risk and Health Policy to reflect our Safety The third level of checks, Operator Critical task. During the reporting period, we introduced Transformation Plan and is available Control Checks, will be rolled out in FY2017. a formal Critical Control Management (CCM) on the Newcrest website. system to provide a systematic approach to verify that the most important, life-saving controls are known, in place and working.

(7) Figures stated as at 18 July 2016.

Three levels of checks:

CRITICAL CONTROL 1. MANAGEMENT System verification (SV) Critical controls are established and healthy EGMs Reviewing individual critical controls

GMs Verify the management in detail, to ensure the systems are Department Managers systems properly designed and implemented

Critical controls are in place and working Reviewing individual critical controls 2. Field critical in detail, to ensure the systems are Supervisors control checks (FCCC) properly designed and implemented and above Verify controls are effective in the field

Critical controls are known and implemented 3. Operator critical Using checklists prior to, and during, Frontline control checks (OCCC) each high risk task to verify the correct critical controls are operators Verify controls are in place prior and during work in place and working NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 27

CASE STUDY

NewSafe roll-out at Cadia

Chief Executive Officer, Sandeep Biswas, speaking to the Cadia workforce about NewSafe.

The NewSafe program commenced at Cadia to launch NewSafe Behaviours at and tapped the ‘Reset’ sticker on his hat. in July 2015 as the next step in achieving operator, supervisor and management The supervisor used skills acquired through a sustainable record of zero fatalities and levels. The NewSafe opinion leaders continue his NewSafe Coaching sessions to ask life-changing injuries. NewSafe involves to drive the safety culture from the ground a series of open-ended questions which everyone at Cadia – from all levels of the up, as they progressively implement a helped the team vocalise their frustrations organisation, from full-time employees range of influencing strategies or ‘plays’ and diffuse the pressure of being behind through to short-term shutdown contractors to motivate and encourage ongoing schedule. After workers had an opportunity – and focuses on leadership, behaviours, commitment to NewSafe among their peers. to discuss the issues, they refocused on and coaching. factors that were within their control and NewSafe Coaching improves the safety made a plan to complete the job without In the first 12 months of NewSafe at Cadia, leadership capability of all site leaders and trying to make up time. The supervisor more than 1,600 people participated in recognises the significant opportunity front thanked the workers and left them to finish the NewSafe Leadership workshops, line supervisors have to influence employees the job safely and without the pressure underpinning the entire NewSafe program and contractors to choose safer behaviours. of the unachievable time constraint. and empowering each individual worker Supervisors often have little previous to be a safety leader. With a strong emphasis training in leading teams but in the past year, Since the introduction of NewSafe at on self-reflection, the workshops shared 80 Cadia supervisors have undergone Cadia, a cultural change has been observed anonymous stories from participants training and are receiving ongoing guidance site-wide, with survey results and anecdotal regarding risk-taking behaviours. This enabled from selected Cadia Superintendents who evidence showing an increased focus on safe each person to identify their individual have been seconded into full-time NewSafe behaviours at all levels of the organisation. impact on site safety and make a personal Coaching roles. Twenty-six managers and In a recent Cadia survey, more than 90 percent commitment to their own safety and that superintendents have also received training of respondents ‘agreed’ or ‘strongly agreed’ of their colleagues. from external safety leadership specialists. that they see a positive difference in their supervisor, and that their crew was more A select number of Cadia employees were An example of NewSafe in action occurred safety-focused. Teams have reported they identified by their peers as informal opinion during a scheduled shutdown at the Cadia are more accepting of feedback and are leaders and engaged to develop NewSafe East mine early in 2016 when an underground actively leading courageous conversations Behaviours specific to each work area. crew was tasked to replace concrete panels with each other and with their supervisors By analysing the stories collected in in a road. On arrival however, they found about safety. Leadership workshops, the opinion leaders the site was not as far progressed as the identified key contributors to risk-taking documentation had indicated, the equipment behaviour and the main drivers of safe required was not available, and their chance culture within their unique work of completing the job within the prescribed environments. From this, they defined timeframe was unachievable. When assessing several behaviours that positively impacted the situation, the supervisor observed high safety performance and would ultimately levels of confusion and stress among team underpin the cultural change inherent in members, poor communication and low NewSafe. In the past 12 months, employees morale. Using one of the NewSafe ‘plays’ from 12 different work groups at Cadia implemented by his crew, the supervisor have attended Commitment Sessions paused the job, called the team together 28

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Ensuring employee and contractor health and safety continued

CASE STUDY

Critical control management roll-out at Lihir

Esilomi Eliuda and Damian Symons, process plant employees, conducting a high-risk task analysis at Lihir.

The introduction of Newcrest’s formal An important part of the verification process In late May, the roll-out of CCM at Lihir Critical Control Management (CCM) system is the interaction and conversations with progressed with the introduction of commenced at Lihir in February 2016, workers in the field, with the CCM system the second level of checks – Field Critical with an intensive training program to coach providing a standard and specific set Control Checks (FCCCs) – which are managers and other senior leaders on of questions on which to structure the conducted by superintendents, coordinators conducting System Verifications (SVs), conversation to verify the critical controls. and supervisors to verify that critical the first of three levels of checks conducted There is also a strong integration of CCM controls are effective in the field. under the CCM framework. with NewSafe, the first pillar of Newcrest’s The roll-out process involved initial classroom Safety Transformation plan, through the use During the initial training and coaching training, followed by intensive coaching of Visible Felt Safety Leadership (VFSL) week at Lihir, 26 SV coaching sessions were and practise out in the field, where the real principles by leaders when undertaking conducted in total, exposing 48 managers impact of the verifications is evident. the checks with their team. and superintendents to the SV process During the fortnight-long roll-out program and the online system for capturing the The results of the verifications from the at Lihir, more than 253 people were trained important verification information initial training week highlighted opportunities and coached in the FCCC system, with and evidence. The participants and to make the critical controls more effective. more than 656 FCCCs completed. site administrators were also given Some jobs were stopped to rectify a critical user training in the Forwood system. control. This is seen as a positive and In many cases, including at Lihir, the Newcrest’s workforce has been explicitly introduction of CCM is an evolution of work SVs are conducted by senior leaders to verify told to stop a job if the right controls are already completed by sites on high-risk the design, implementation and training not in place or are not effective. task analysis, with CCM moving the work elements of a critical control. These into a formal system and making it even verifications involve checking the systems In the months following the SV training, more powerful. underpinning a critical control, as well as the Lihir leadership team has focused on checking how effective the critical control embedding SVs by scheduling regular and The roll-out of CCM at Lihir will continue is operating in the field. frequent system verifications and engaging in FY2017, with the introduction of the final the broader workforce in this proactive level of checks – Operator Critical Control and important risk management activity. Checks (OCCCs). More than 178 SVs of major hazards have been conducted by leaders at Lihir during the reporting period since their introduction in February. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 29

CASE STUDY

Successful Kencana underground mine rescue

Pak Mursalim Sahman arrives at the Gosowong medical clinic after his successful rescue.

On 8 February 2016, a ground fall at the A selection of different rescue options were A full and thorough investigation into Kencana underground mine at Gosowong, analysed and prioritised based on safety and the cause of the geotechnical event was Indonesia, trapped one of Newcrest’s speed. During this process, Newcrest drew undertaken by Newcrest Mining and drill operators, Pak Mursalim Sahman. upon expertise from within the Company, processing operations at the Toguraci mine The following eight days, leading up to the as well as skills and assistance from other remained suspended until 12 April, while successful rescue of Pak Mursalim on the mining companies and specialist advisors who mining operations at Kencana remained 16 February after 181 hours underground, had led similar underground rescue efforts suspended until 12 June, to ensure we could highlighted the tenacity, determination around the world. Specialist equipment and be confident mining could be resumed safely. and commitment of Newcrest’s workforce personnel were sourced from Australia. The rescue of Pak Mursalim was a display to the welfare of one of their colleagues. The successful rescue option involved drilling of Newcrest culture at its best and is The ground fall occurred around 8.30pm a near-vertical hole using a raise boring symbolic of just how much the safety of local time as a result of a geotechnical machine down into the area of the mine our people matters to us all at Newcrest. event. The mine was evacuated immediately where Pak Mursalim was located. and all personnel accounted for, with the The 38-metre long hole had a diameter exception of Pak Mursalim who was trapped of 0.7 metres. A rescue cage was built approximately 300 metres underground. and tested, and an emergency response No other injuries were reported during specialist travelled down the hole to help the ground fall. Pak Mursalim prepare for his ascent. From this time, Newcrest’s first priority There was an enormous sense of relief was to locate and rescue Pak Mursalim, among everyone involved when Pak and emergency response and crisis Mursalim safely reached the surface. management teams were rapidly formed. Pak Mursalim showed great courage, remaining positive and providing valuable Verbal contact was made with Pak Mursalim information to the rescue teams through at 10am on 10 February, approximately his time underground. Following medical 37 hours after the initial ground fall event. checks, he was happily reunited with his Contact was established via a small diameter wife and children. hole drilled through 54 metres of ground to where Pak Mursalim was located. The rescue Many people worked tirelessly to ensure team was able to speak to him at this stage this result, including the on-site rescue and to confirm that he was in good health and teams, hundreds of people from across spirits, and that he had supplies of water and our Gosowong operation and wider food. Preparations were made to send down Newcrest, as well as external parties, additional water and food as well as to drill including suppliers, other mining a second small diameter hole to use as a companies and government agencies dedicated communication link. This second in both Indonesia and Australia. 95-metre hole was in place by 11 February and was valuable over the coming days as Pak Mursalim was able to provide the rescue team with useful information to assist with his rescue. 30

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Ensuring employee and contractor health and safety continued

OCCUPATIONAL HEALTH AND HYGIENE Standards and governance Occupational hygiene programs Newcrest has occupational health standards, During the reporting period, occupational A staged occupational baseline monitoring which set business expectations for the health standards were redrafted and program commenced at each site during the management of our health and hygiene streamlined in consultation with site teams reporting period for ongoing application during programs to support the intent of our for easier interpretation and application in FY2017. The first step of the occupational Safety and Health Policy. Newcrest also each of the global regions where we operate. hygiene improvement program was to has a strategic health plan aimed at achieving The new draft standards are planned for establish (or verify) Similar Exposure Groups ‘a healthy and safe workplace free of management review and endorsement in (SEGs) for each of our sites based on common fatalities, injuries and occupational illness’. FY2017, followed by implementation at sites work activities. Occupational hygiene surveys and commencement of integrated health, of the work environments were then conducted Key programs of work in FY2016 to support safety and environment audits to identify at selected sites to identify potential health this strategic plan related to occupational improvement areas. hazards that the SEGs may be exposed to, health and hygiene, including: e.g. welding fumes, diesel particulate matter, Newcrest holds monthly Executive Health and • streamlining and improving health noise, vibration or exposure to silica dust. Safety Leadership Team meetings involving standards and governance; Risk-based monitoring programs are then members of senior management, including • developing (or improving) workplace designed and implemented to monitor site General Managers. The meetings focus occupational hygiene monitoring and workplace conditions and apply controls to specifically on health and safety aspects and management programs; mitigate potential exposures. Further work performance. A Health Community of Practice • improving health database systems is underway to continue surveys of potential has also been established in Newcrest where to support regular reporting and analysis workplace exposures, complete baseline monthly calls are held with site health of health data; and, monitoring programs and embed regular representatives to improve knowledge-sharing monitoring of potential exposures and • developing Fitness for Work and between sites and capacity-building. Updates application of mitigation measures. Wellness programs. on health programs and performance are also reported monthly to our Executive Committee and during quarterly meetings with our Safety and Sustainability Committee.

CASE STUDY

Lihir Malaria Elimination Project

Newcrest’s five-year alliance with the are intended to help establish protocols not-for-profit organisation Medicines for for the implementation of the program, Malaria Venture (MMV) continued during which is based on providing International the reporting period. Through the alliance, and PNG-approved medicines in a specific a project has been established at Lihir to sequence to break the cycle of malaria prevent the transmission of malaria within parasite transmission. During FY2016, the Lihir population by eradicating the educational programs were undertaken malaria parasites. focusing on informing community members about the project. The Lihir Malaria Elimination Project represents a first attempt for elimination Since the alliance with MMV that commenced of malaria within a region of PNG. Newcrest five years ago as well as implementation continues to engage with the PNG National of malaria prevention programs at each of Department of Health about the project our sites, there has been a decline in the total and the department has been supportive number of cases of malaria across the Group. of malaria elimination as part of the National However, malaria is still prevalent in each Malaria Strategic Plan for PNG. of the offshore regions where we operate, and malaria programs that help to address The project team have been working with the the prevalence of malaria in neighbouring PNG government and international experts communities as well as within our workforce to undertake clinical trials. The clinical trials are important to drive continual improvement.

Fogging for mosquito prevention at Lihir. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 31

Improving health database systems Fitness for work and wellness programs multiple linked strategies integrated within During the reporting period, Newcrest Newcrest recognises that employee wellbeing, existing Safety, Health and Human Resource approved the purchase and installation including both psychological and physical programs and has the flexibility to be tailored of the occupational hygiene components wellbeing, is a significant component of to each of our sites based on cultural aspects. of Medgate for each of our sites, an online Fitness for Work. The release of the Blueprint Ongoing work is planned to develop effective health tool to support data recording and for Mental Health and Wellbeing developed tools and programs to support the reporting. In consultation with Information by the New South Wales Minerals Council, implementation of the framework and assist Technology and site occupational health and and the focus on mental health impacts our sites with managing this challenging issue. hygiene specialists, the system was installed of fly-in/fly-out lifestyles by the Western As a component of Fitness for Work, during and preliminary testing commenced. Australian Government, has helped raise FY2016 a program of site-based fatigue Further work is underway to source and the profile of mental health issues within the reviews across Newcrest operations upload historical data from each site, train resources industry. commenced with the assistance of an users and pilot the system. The Medgate In previous years, training programs on the external specialist. Reviews are scheduled system will allow each Newcrest site to identification and management of mental to continue during FY2017 to cover each input detailed data from occupational health aspects have been conducted at our of our sites to assess the current status of hygiene monitoring for improved trending Australian operations in collaboration with fatigue management programs and identify and reporting of data and management Beyond Blue. During FY2016, Newcrest site-specific improvement opportunities. of potential workplace exposures. developed a draft guideline designed to provide a framework for promoting physical wellbeing within the workforce, as well as reducing the risks and potential impacts of mental illness. The draft framework comprises

Daniel Tincknell being given a breath test by Jeremy Ryan as part of Fitness for Work at Telfer. Managing ourpeopleandtheircapabilities for thepastyear. diversity have been areasofkey focus training ourpeopleandculture employees, ourleadershipteameffectiveness, The attraction andidentificationoftalented to raise performance. diversity fully, tobuildcollaboration and an inclusive culture,inordertouseour challenges ourbusinessfaces. We encourage that we canfindinnovative responsestothe of ideas,skills, andexperience thatensure We recognisethat itisouremployees’ diversity work anddevelopment opportunities. and growth ofouroperations, offering exciting employees tosupportthecontinuedperformance development oftalentedandmotivated we do. We value ourpeopleandencourage the achievement amongallourpeopleinthework We strive tobuildasenseofpurposeand and inclusive environment. people andcapabilitycreatingadiverse on gettingthebasicsright,developing our their fullpotential. This Strategy hasafocus on talentedpeople,working togethertoachieve To supportthis,ourPeople Strategy focuses culture withtopquartileorganisationalhealth. We aimtohave ahigh-performance, no-nonsense 32 FROM THE CEO THE FROM MESSAGE OUR APPROACH WE ARE WE WHO THIS REPORT ABOUT

IN REVIEW THE YEAR ATTRACTION ANDRETENTION of females inourworkforce. activity toincreasetherepresentation and by undertaking sourcingandrecruitment Indigenous employment andtraining programs any imbalances. This isachieved through affirmative actionmayberequiredtoaddress we operate. Insomejurisdictions,targeted that bestrepresentsthecommunitiesinwhich by ourcommitmenttohave aworkforce opportunities aremerit-based,supported Recruitment activitiesandemployment is viacentral andlocally-delivered services. Accountability for managingrecruitment fly-in/fly-out (FIFO)basedemployment options. sites, we needtooffer amixofresidentialand retain atalentedworkforce atsomeofour candidates. We recognisethattoattract and to attract andhirefromadiverse poolof market inthefirstinstancewherewe seek by external recruitmentinthelocallabour are prioritisedfor rolesandsupplemented broader businessstrategy. Internalcandidates and internationallevel thatarealignedtoour acquisition activitiesatthelocal,national resourcing requirements,we undertake talent To meetourcurrentandfuturehuman to qualifications, abilities,aptitudesandalignment evaluated accordingtotheirjob-relatedskills, and deepfunctionalexpertise. Applicantsare recruitment ofpeoplewithleadershipcapability invest significanteffort intheattraction and We aimtohirehigh-qualitypeople. We and contractorsFY2013 Graph 5:Totalnumberofemployees

8,184 and Values Our Vision FY2013 9,261 OUR PERFORMANCE PEOPLE OUR 5,602 FY2014 4,990

6,907 FY2015 6,456 PERFORMANCE ECONOMIC . – 6,731 FY201 FY2016 5,413

6 (#) Contractors Employees

PERFORMANCE SOCIAL

development reviewsFY201 receiving regularperformanceandcareer Graph 6:Percentageofeligibleemployees and proactive sourcing. team structuretoallow for moretargeted We have alsorealignedourcentral recruitment implemented active stage-gatemanagement. We have reducedourtimetofilland outcomes for quality, timetofill,andcost. levels sothatwe cancontinuetoimprove reporting tomeasureefficiencyandservice In 2016,we have implementeddashboard framework isnow beingappliedmorebroadly. and talentpoolsfor criticalroles. This talent in placearegularprocesstomanagetalent accelerated external talentpoolsandput To follow onwiththiswork, we have also • • • Overall, thisactivityhasmeantthatwe have: guidance duringarecruitmentprocess. roles andprovide key sourcingandselection development plansfor individualsincritical used tosupporttargetedandaccelerated success intheseroles. These profilesare competencies andbehavioursrequiredfor profiles tohighlightthekey skills, knowledge, Once identified,we developed success identified criticalrolesacrossthebusiness. most strategically significantareas,we recruitment anddevelopment effort onthe In aneffort toensurewe arefocusing our PEOPLE IN THE RIGHT ROLES ENSURING WE HAVE THE RIGHT STEWARDSHIP ENVIRONMENTAL

Bonikro 98 capability evaluation score,for criticalroles. Increased theaverage peopleleadership roles; and, Created instantvisibilityofcritical critical roles; Higher-quality talentinourbusiness

Cadia 99

Gosowong 75

Lihir 99 TABLES DATA Telfer 94

Corporate 97 6 (%) STATEMENT ASSURANCE

NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 33

PERFORMANCE AND A HEALTHY Overall, we recognise that our organisational ago, our score has improved from being CULTURAL CLIMATE culture is critical for performance and in the lowest 25 percent (or quartile) of the To achieve sustainable performance and sustainable outcomes. We aim to improve 750 companies in the global survey in 2014, a healthy cultural climate, we need our our Organisational Health by embedding to the third quartile in 2015, and now the Group-wide performance systems to support inspirational leadership, having a shared second quartile in 2016. It shows that we the consistent and transparent assessment vision and improving employee involvement. are continuing to improve and that our goal of people across the Company. Our systems This is measured by an annual Organisational of being in the top quartile of companies for also drive a performance-focused culture Health Survey. Our key focus for the last organisational health is achievable. This overall by making clear linkages between performance year has been to: OHI score is a summary of how effectively and reward, and enable employees to articulate • Unlock people potential through skills and Newcrest operates day-to-day to get things their development needs and career aspirations. knowledge development and strengthening done. It reflects how well we set a clear We offer our employees a comprehensive personal ownership; direction, execute our plans, and learn and adapt. Our ability to maintain and improve reward package – the principles of which are • Engage and inspire employees through on our performance safely, regardless of consistent across the Group. These principles meaningful vision, leadership and the operating conditions, all comes down to are designed to be competitive, in compliance transparent communication; and, having a ‘healthy’ culture. A healthy company with all applicable laws and regulations, • Continuously improve through daily is safer, performs better, provides greater and to appropriately balance fixed pay with innovations and operational discipline. variable pay linked to performance. returns to shareholders, and is a better With the aim to build our leadership capability place to work. To ensure the long-term sustainability of and build high-performing leadership teams, The gain we have made over the past year our business, we also need our people leaders we have run the Leadership Team Effectiveness is the result of improvements across each to inspire others. We need them to engage, program with the Executive Committee and of our seven priority practices. The strongest excite, guide and encourage. Therefore, building the management teams at each site in 2016 improvement was in our Shared Vision the People management capability has been with very positive and impactful outcomes. prioritised in 2016, though it is part of a practice, which increased by 11 points, long-term journey. The focus on People Leaders In FY2016, we conducted our annual survey followed by Employee Involvement, which has begun by improving Leadership Team to measure organisational health. More than increased by 7 points, and Inspirational Effectiveness across our sites. 4,000 of our employees completed the Leaders which improved by 6 points. 2016 Organisational Health Index (OHI) survey, Some of our practices, such as Talent which represents an excellent response rate Development, Inspirational Leaders of 78 percent. Newcrest’s overall OHI score and Personal Ownership, still represent was up five points from 2015. All of our OHI opportunities for improvement. outcomes and practices have also improved. Since we started doing the survey two years

2ND highest quartile in an Organisational Health Index survey of 750 Scott Smith, Underground Electric Coordinator at Cadia. companies worldwide 34

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Managing our people and their capabilities continued

TRAINING AND EDUCATION Newcrest has a range of operator training A personal development plan is developed An important component of Newcrest’s programs available for employees across for each employee in consultation with People Strategy is a commitment to the ongoing all sites, which cover a number of technical their direct manager as part of the annual development of its employees, with training areas. These include mobile and fixed plant, performance planning and review process. and development programs a key element of safety and compliance. A great deal of Interim and annual performance reviews are a its high-performance culture. Training courses training has been delivered around leadership requirement of Newcrest’s career development cover a broad range of areas, including development. NewSafe training has been and work performance systems. These reviews technical skills, managerial skills and a range a major focus. It is a program which targets provide an important opportunity for staff of specialised programs. We are currently all levels and aims to change our safety to set personal development targets, including implementing a new learning management culture and our responsibilities towards training and development needs for the system at our sites to improve training safety ownership and leadership. There has year ahead. documentation management and delivery also been a focus this year on Newcrest’s of training activities. It will be rolled out Code of Conduct across all sites, so there is in stages across the business over the a good understanding on how we all conduct next 18 months. ourselves and behave across the business. Newcrest provides opportunities to employees to complete external programs at various levels and provides funding support for approved applications. Employees can apply for study leave to attend compulsory residential schools, examinations and face-to-face classes when they are not available outside of normal working hours. Paid education/study leave is in addition to an employee’s normal annual leave entitlement.

First-aid training, Cadia. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 35

CASE STUDY

Improving People Practices for Better Safety and Organisational Health

Mobile Maintenance team, Bonikro.

Our Mobile Maintenance team at Bonikro Based on the outcome of the audit, As a result of a focus on people practices, is an integral part of the site workforce the following actions were implemented: particularly on effective workforce who ensure safe production through • acquiring supervisors with experience management and capability building, resolving maintenance issues on our in safety leadership; various improvements have been recognised. Most importantly, employees have a renewed mobile equipment. The team must remain • appointing two high-performing female trust in the leadership team, regularly safety focused, responsive and organised. maintenance planning resources; approaching them to discuss work and An external maintenance audit was • training all supervisors in the use of safety issues. Healthier relationships completed during the reporting period, courageous conversations tools to help have formed and employees now willingly which highlighted opportunities where coach their teams in the importance discuss issues at safety meetings, with effective workforce management and of feedback, while helping to inspire actions quickly progressed. Overall, there capability building could make a difference. and motivate safe behaviour through has been improvement in the calculated The following recommendations for stressing the importance of personal Organisational Health at Bonikro relating improvement were advised: safety; and to better engagement and leadership • appointing capable supervision with • mentoring the remaining supervisors, practices. From an operational perspective, effective communication skills, to provide with time spent coaching on: maintenance turnaround time has improved confidence during difficult conversations −− safe work before production; due to a greater focus on proactive and empower employees to speak openly −− effective role modelling by consistently maintenance, with requests for new at pre-start meetings; applying visible, parts now actively raised and actioned • building employee capability safe leadership every day; with senior leaders. in safety awareness; −− reinforcing task allocation and These significant changes within Bonikro’s • clearly defining accountability so that risk assessment; and Mobile Maintenance team clearly supervisors were able to spend more −− building confidence to stop work demonstrate the tireless efforts focused time with their teams; and for safety reasons and understand on improving safety and operational • reinvigorating Newcrest’s Values why we do it. discipline within the site while empowering and associated behaviours. Further to this, supervisors spent time employees’ confidence and understanding with their teams in the field by asking them in safe production. questions about their work, the associated hazards and encouraging them to speak up and ‘have a go’. When they made a contribution, it was celebrated, as were demonstrations of Newcrest Values and behaviours. 36

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Workforce diversity and equal opportunity

NON-DISCRIMINATION • Executive Committee Diversity OUR APPROACH Newcrest’s commitment to a workplace Sub-committee: the Executive Committee free from discrimination is underpinned by Diversity Sub-committee continue to Newcrest’s Values, Diversity Policy and provide guidance, input and advice regarding We are focused on becoming a more International Employees Policy. Additionally, the implementation of Newcrest’s Diversity inclusive and diverse workplace, increasing Newcrest’s Workplace Behaviour Standard and Inclusion Strategy. the representation of women in our business and Resolving Workplace Behaviour • Diversity Policy: the Diversity Policy outlines and achieving a better balance of gender in Complaints Procedure, coupled with how Newcrest seeks to create a diverse the short-term, and of ethnicity and nationality Newcrest’s over-arching Code of Conduct, workforce, including treating employees in the medium-term. We are also focused on detail and support the appropriate behaviour fairly, setting measurable targets, ensuring developing more diverse leadership teams. expected of employees, contractors, suppliers, legislative compliance and supporting This involves developing local nationals consultants and visitors of Newcrest. We believe diversity in all its communities. Newcrest’s in emerging regions to ensure they have the workforce should reflect the communities Diversity Policy actively promotes a culture the capabilities and experience to lead in which we operate and, wherever practicable, that values difference. The Diversity Policy our operations. Newcrest is committed to local hiring and is published on the Newcrest website Newcrest believes that a diverse and inclusive development of workers at each site. at http://www.newcrest.com.au/about-us/ workforce supports a high-performance company-policies, and it is able to be Along with initiatives to increase the gender culture. Diversity at Newcrest means accessed by all employees via the internal balance in the workforce, Newcrest has a range incorporating differences that relate to gender, portal. The Policy is also displayed at all of measures and plans to further increase age, ethnicity and cultural background. It also sites. Newcrest’s standards and procedures diversity in the areas of age, ethnicity and includes differences in background and life are reviewed and updated annually. cultural diversity. Newcrest is committed experience, communication styles, • Workplace Behaviour Standard: Newcrest’s to developing our people across the Group interpersonal skills, education, functional Workplace Behaviour Standard similarly and to ensure the workforce – including the expertise and problem-solving styles. underpins Newcrest’s diversity and inclusion leadership team – reflects the communities Underpinned by Newcrest’s values, Newcrest’s priorities by promoting a workplace that in which we operate. Diversity Policy outlines the ways we aim to is inclusive and free from discrimination, support a diverse and inclusive workplace, Newcrest has continued to strengthen its harassment, bullying and victimisation. including treating employees fairly, setting diversity and inclusion platform, most notably Ensuring employees understand what measurable targets, ensuring legislative by the following elements: is appropriate workplace behaviour and compliance and supporting diversity in • Newcrest’s values: the Newcrest values encouraging them to speak up if they local communities. In addition, we look support the diversity and inclusion agenda see inappropriate behaviour supports to preferentially employ local people and and demonstrate how they are integrated Newcrest building a positive and use local suppliers, where possible, to build into the fabric of the business. Key values productive workplace environment. business capabilities and stimulate local relevant to diversity and inclusion include • Flexible Work Practices Standard: provides and regional economies. high performance, work together, care about access to employees to adopt flexible work people, innovation and problem solving. practices to support a range of professional • Board and Executive Committee and personal circumstances. engagement: the Newcrest Board and Executive Committee actively lead Newcrest’s diversity and inclusion agenda.

Telfer Environmental Advisors Claire Learey and Anne-Louise Vague inspecting off-site rehabilitation areas.

44% women in the graduate program (8) • c. b. a. business. The measuresareasfollows: building apipelineoffemale talentwithinthe measures. These measuresarefocused on Newcrest hasthreeASX genderdiversity Levels 2–4includes SeniorProfessionals/Supervisors, Managers andSeniorManagers. SeniorExecutives and Technical/Professional/Clerical Rolesareexcluded. (Levels 2–4) As at30June2016,women inmanagement of 16percentby 31December2016. in managementLevels 2–4toaminimum Increase therepresentationofwomen 31 December2016. to aminimumof40percentby selected for thegraduate program Increase therepresentationofwomen by 31December2016. development by aminimumof20percent accessing programs aimedataccelerating Increase theproportionofwomen of 16percentby 31December2016. toaminimum in managementLevels 2–4 Increase therepresentationofwomen under thismeasure. business andaccelerate itsperformance develop andprogresswomen withinthe to identifyinnovative ways toattract, with 30June2015.Newcrest willcontinue increased by 2.2percentwhencompared workforce. The percentageofwomen has (77 women) ofNewcrest’s Australian OUR PERFORMANCE ( 8) accountedfor 15.9percent

• • 72.7 percentofthetotalpopulation. female vacation studentsaccountedfor and Scholarshipprograms. InFY2015, continues toinvest heavilyinits Vacation Program stands at44.4percent.Newcrest participation ontheNewcrest Graduate on theNewcrest Graduate program. Female Newcrest hasninegraduates employed 31 December2016. to aminimumof40percentby selected for thegraduate program Increase therepresentationofwomen place by 31December2016. roles willhave adevelopment planin 100 percentofourwomen inleadership We have madeacommitmentthat our females withleadershippotential. processes toincreasethevisibilityof identification anddevelopment planning We arenow implementingnew talent and interaction tobehigh-performing teams. to buildtheneededstructure,alignment Site Leadership Teams, withthepurpose has beenwithourExecutive Committeeand InFY2016focusprocesses. ondevelopment a needtoimprove ourdevelopment development we offer. The review indicated individuals withleadershippotentialandthe development, focusing onhow we identify the opportunitytoreview ourapproachto Over thepast12monthswe have taken by 31December2016. development, by aminimumof20percent accessing programs aimedataccelerating Increase theproportionofwomen

NEWCREST MINING LIMITED SUSTAINABILITYNEWCREST REPORT 2016

by employmentlevelFY2016(%) Graph 7:Employmentratiobygender by employmentlevelFY2016(%) Graph 8:Employmentratiobyagegroup Senior Executive 37.5 62.5 Senior Executive 75.0 25.0

Senior Manager 42.2 57.8 Senior Manager 97.8 2.2

Manager 1.1 73.3 25.6 Manager 81.1 18.9 Senior Professional/ Senior Professional/ Supervisor 8.5 71.3 20.2 Supervisor 90.3 9.7 Technical/Professional/ Technical/Professional/ 88.0 12.0 Clerical Role 15.4 70.4 14.3 Clerical Role Male Female € + ofage  < ofage – € ofage 37 38

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Economic Performance Newcrest’s improvement in financial strength is the result of the operational discipline, energy and efforts applied by our employees and contractors over the last two years.

Cadia conveyor. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 39

Productivity, financial sustainability and growth

PRODUCTIVITY AND FINANCIAL Improvement ideas are generated through SUSTAINABILITY a mix of formal and organic idea generation OUR PERFORMANCE sessions. The majority of Edge improvement projects are site-led and owned, with light The focus of Edge during the reporting period OUR APPROACH support from the central transformation office. has remained on cash generation through The connection between Edge and Newcrest’s cost control, productivity improvements Newcrest’s rigorous business transformation seven Organisational Health Practices has also and utilisation of our assets and ore bodies. program, Edge, has been underway for two been strengthened during the reporting period, We are also increasing our focus on step-change and half years. It has delivered substantial with line leadership focusing and demonstrating innovation through technological and digital benefits to the Company. Our focus continues the Practices when implementing Edge projects advances that we can apply to our short, to be on improvements in safety, operational and their broader responsibilities. Newcrest’s medium and long-term horizons. These performance and culture whilst embedding Organisational Health Practices are employee include in areas such as proximity detection the Edge mindset and systems into the involvement, operational discipline, personal for safety applications, mining and big culture of the Company on a long-term basis. ownership, bottom-up innovation, inspirational data technologies for block cave performance, This continuing focus will further unlock leadership, talent development, and shared process technologies to more efficiently substantial improvements to performance. vision. By embedding the Practices into liberate valuable metals and leverage of everything we do, including Edge improvement data for predictive maintenance to reduce Edge is based on bottom-up innovation, initiatives, we embed the organisational equipment downtime. empowering our people to identify and health mindset and behaviours into the deliver improvements across the business. way Newcrest does business.

CASE STUDY

Edge energy projects continue to improve the bottom line at Lihir

An ongoing program of Edge initiatives has to smoother running of the engines • Continuation of the previous strategy continued to deliver positive results for Lihir. which provides better reliability and of sustaining Lihir’s geothermal steam fuel combustion. field; geothermal generation averaged The focus during the reporting period has • In conjunction with the manufacturer 21 megawatts during the reporting been centred on fuel efficiency, which makes of the engines, further upgrade of cylinders period, 20 percent higher than forecast. up to 70 percent of the cost of a megawatt and fuel pumps took place which what • Completion of the accommodation of power from heavy fuel oil-fired engines. is known as a LoNOx conversion. This village air conditioner power reduction Edge energy projects at Lihir have included: promotes optimum burning of gases initiative, saving up to $0.5 million per • Cleaning out of storage tanks of oil sludge in the combustion chamber leading year in power costs. and upgrade of fuel separation units. to an eight percent decrease in fuel • Initial planning to clean the large This minimises fuel solids reaching and consumption and less emission Linde Oxygen Plant’s main heat wearing the engine piston rings, thereby of greenhouse gases. exchanger in Quarter Four. This will reducing fuel oil consumption and • An ongoing trial to test a new modern recover three percent in lost oxygen decreasing emissions. style silencer on the outlet of the production efficiency and have • Upgrade of Fuel Conditioning Modules engines’ exhaust pipes. If successful, a corresponding positive effect to ensure the fuel is at the optimum the initiative will be rolled out to on overall energy consumption. temperature and viscosity before all the remaining engines thereby being injected into the engines, leading further reducing background noise for the neighbouring community. 40

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Productivity, financial sustainability and growth continued

CASE STUDY

New Jameson cell pays dividends at Cadia

During the reporting period, Cadia of fine copper and gold mineral particles, commissioned the latest item in its extensive presenting an opportunity for improvement Ore Treatment Metallurgy project pipeline, in circuit recovery. a Jameson cell in the Concentrator 2 plant, The commissioning of the second Jameson to optimise gold recovery. cell was the next step in the strategic focus Ore from Cadia East is now the sole source of producing the highest quality, gold rich for feed for both concentrators at Cadia. copper concentrate we can for our customers. Fluorine bearing minerals are prevalent The project was delivered on-time, and in Cadia East ore and present in the final was used as a vehicle to encourage close flotation concentrate when processed collaboration and a safe culture with in standard flotation cells. Newcrest’s business partners as part A significant amount of work has been of our NewSafe journey. It also embedded undertaken looking at rejecting fluorine critical controls in all high-risk tasks in Concentrator 1. This resulted in the involved, ultimately delivering a value-add installation of the world’s largest Jameson outcome for the business, safely. cell in a metalliferous application in While only recently commissioned, the November 2014, an Edge project that planned improvements are being achieved paid itself back within four months. with concentrate grade and fluorine In addition, a plant trial in Concentrator 2 rejection targets are being met. highlighted poor performance on recovery Jameson cell, Cadia.

GROWTH New growth opportunities are evaluated and by the Executive Growth and Investment in terms of their technical merit (e.g. size Committee to ensure that growth is of deposit), how the opportunity fits with undertaken strategically and appropriately OUR APPROACH Newcrest’s current strategy and portfolio, in relation to Newcrest’s growth objectives. due diligence (e.g. sovereign risk, community General Managers regularly review the and environmental legacies) and security implementation of exploration activities Growth at Newcrest is managed through of tenure. Community and environmental to help ensure their optimal delivery. four key areas: assessments look for any barriers that would Newcrest’s growth strategy is to extend the • Brownfield exploration: The Company’s prevent or delay development. Potential mine life and/or grow production or margin brownfield exploration activities are positive impacts are assessed for aspects at each mine through brownfields exploration, centred within and around our existing such as local employment and community resource definition and ore body knowledge operations and seeks to sustain our existing development, or addressing existing work, support advancement of the Company’s operations through new resource growth. environmental legacies from previous development projects, and deliver the next • Greenfield exploration: The Company’s site owners/operators. generation of discoveries from the greenfields greenfield strategy is focused on making From a management systems perspective, exploration portfolio. new discoveries within targeted geological growth is delivered under the direction belts that are situated outside of our present of Newcrest’s Board and its Growth and operating districts. Our targeted geological Investment Committee, which sets growth belts are located within West Africa, objectives and determines investment in Asia–Pacific and our new search space growth opportunities. A growth strategy within Central America and South America. is developed and embedded in Newcrest’s • Resource and reserve management: planning cycle. The implementation of these This covers Newcrest delivering on its growth objectives is then allocated to current reserves. individual executives, such as the General • Projects: This includes advanced projects Manager Exploration. Growth-related being evaluated as the next development projects and associated budgets are regularly opportunities, such as the Wafi-Golpu project reviewed by the Chief Development Officer in PNG and brownfields projects, such as the pre-feasibility into the expansion of Cadia. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 41

Within Asia–Pacific, Newcrest is targeting In December 2014, Newcrest and Harmony OUR PERFORMANCE selected geological belts within Australia, Gold Mining Company Limited released an the epithermal districts within the North updated pre-feasibility study for the project, Island of New Zealand and the highly which confirmed Golpu as a world-class deposit During the 2016 financial year, Newcrest prospective epithermal and porphyry belts and identified an improved business case exploration programs were centred on seeking within Indonesia and Papua New Guinea. for the project by splitting it into two stages. to attempt to grow the resource base of our Stage one targets the upper higher-value Over the last twelve months, target generation existing operations (brownfield exploration) portion of the orebody and stage two exploration and drilling was completed on the and search for new discoveries within our encompasses the rest of the ore reserve. greenfield projects (greenfields exploration). Wamum Project (PNG), Mungana Project (North Queensland) and the Southern Coromandel In February 2016, Newcrest and Harmony Brownfield exploration was undertaken at Exploration Project (New Zealand). released an update on progress of the the Telfer, Cadia, Bonikro, Lihir and Gosowong Wafi-Golpu Feasibility Study and Prefeasibility Newcrest is also searching for new operations. At Gosowong, exploration was Study. The update on the Feasibility Study opportunities in Indonesia within porphyry focused on targeting resource growth within completed sufficient work to justify access and epithermal belts. Indonesia is a highly the vicinity of the Toguraci and Kencana declines, which are required to undertake prospective region as it contains world-class operations and searching for new discoveries more drilling of the orebody at depth to porphyry and epithermal deposits. within regional contract of work. Within the inform the next stage of the feasibility study. regional contract of work, exploration has Newcrest during the year made a strategic identified a number of high priority targets Central to the development of the project will decision to expand its search space to include that presently are being systematically be ongoing engagement with key stakeholders, targeted geological belts within Central and drill tested. Target generation exploration including the Papua New Guinea and Morobe South America. These regions contain a broad was also undertaken at Lihir, Telfer and Province governments, landholders and range of gold deposit styles, large number Cadia with a number of targets being defined, community representatives to establish of lower risk jurisdictions, well-established these targets will be assessed during the a suitable and sustainable framework mining and exploration culture in many present financial year. for advancing the project. areas and deposit styles where Newcrest The Greenfield exploration strategy is can leverage off its in-house exploration and focused on securing projects within targeted mining capability. geological belts that meet the Company’s Newcrest’s most exciting greenfield project growth criteria and have the potential is Wafi-Golpu, located in the Morobe Province of delivering multiple discoveries that of PNG, approximately 65 kilometres can be converted into the Company’s south-west of the town of Lae. Wafi-Golpu next generation of mines. is owned by the Wafi-Golpu Joint Venture West Africa is one of the world’s major gold (WGJV), one of three unincorporated joint regions containing greater than 400 million ventures between subsidiaries of Newcrest ounces of gold, and a number of world-class and Harmony Gold Mining Company Limited gold deposits and has the most multiple million in the Morobe Province. ounce discoveries within the last ten years. Wafi-Golpu comprises an extensive body Newcrest is targeting Côte d’Ivoire as it has of gold-only epithermal style mineralisation a present operation within the country and it (Wafi) and deeper porphyry related is the most prospective under explored region copper-gold mineralisation (Golpu and within West Africa. Within Côte d’Ivoire, Nambonga). The Golpu and Wafi deposits Newcrest is exploring four key early stage are located in close proximity to each other, projects. Exploration of these priority projects with Golpu located below and immediately has recently commenced. north of the Wafi deposit. 42

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Social Performance A planned, transparent and constructive approach to community engagement and development is critical to maintaining Newcrest’s social licence to operate. We are conscious of the need to balance government and community expectations against a projects ability to deliver short-term and long-term benefits.

Lihir high school students learning to filter water samples. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 43

Local community development and investment

Measurement of the impact of the consistently on grievances and performance OUR APPROACH community programs over time is provided against site community objectives and targets for by periodic community baseline surveys across sites). Our stated commitment at and program evaluations. that time was to ‘continue to address these Newcrest’s mining and exploration activities weaknesses and build site awareness of key Our approach to working with local communities, have significant potential to impact the gaps to enable us to improve in the future’ and to managing our impact on them, is guided communities where we operate. A planned, through a roll-out of a new ‘Social Performance by our Communities Policy and Social transparent and constructive approach to Architecture’ in FY2016. Our report on Performance Standard. The Policy sets out the community engagement and development the approach and progress towards that key principles that guide our engagement with is critical to maintaining Newcrest’s commitment by improving governance, communities, and the Standard enables us social licence to operate and ensuring capabilities and awareness, community to translate that Policy into leading practice. that communities benefit from Newcrest’s programs and integrated social closure The Standard is supported by guidelines that operations. We are also conscious of the planning is as follows: need to balance government and community facilitate effective and consistent delivery expectations against a project’s ability to across our sites. At a site level, implementation • Embedding social performance deliver benefits throughout the life of the plans are developed to deliver community at executive level and sites mine. In the longer term, we also need to ensure commitments. Finally, where needed, standard During the reporting period, Newcrest that we do not create community dependencies operating procedures support the undertaking appointed Ian Kemish into a newly created on our mining operations that are unsustainable of specific community activities. position, EGM Public Affairs and Social once the operation reaches the end of its Performance, raising the profile and focus life. Our overriding consideration is to leave in the areas of government relations, communities no worse off, but ideally much OUR PERFORMANCE strategic communications and corporate more capable, than when Newcrest arrived. social performance. The appointment is in line with the importance that Newcrest The principles that guide our community Newcrest delivers economic benefits to places on developing and maintaining strong investments are: local communities through payments under in-country and local, negotiated land use relationships with our key stakeholders • Maximise capability building, primarily agreements or by agreed direct investment which underpin our long-term success. through education and training to build into local communities. Newcrest may contribute self-sufficiency and economic independence • Improved standards significant infrastructure investments or within communities for the long term; The Community Standards that previously services to local host communities, usually • Ensure community involvement and supported the Newcrest Communities in support of capital projects that sit within engagement in the determination and Policy have been replaced by a new broader community development programs. delivery of community investments; and, Social Performance Standard in March It is Newcrest’s aim to have a net positive impact 2016, providing a new framework of • Prepare the community for the on the communities in which it operates. During post-mining environment. mandatory requirements on which to base the year, Newcrest reported on its continued context-specific site social performance Newcrest’s presence provides many indirect support through significant investments in strategies, guide actions and build benefits to the countries and communities excess of USD 20 million in local infrastructure, relationships designed to secure and in which we operate. These benefits include: services and community projects and health maintain community support. The Social programs. For instance, at the Lihir Operations, • Improved access to employment, Performance Standard contains auditable we invested more than USD 6 million in medical health and education opportunities; elements that are the minimum requirements services facilitated by the Lihir Medical Centre, • Investment in community infrastructure necessary to meet Newcrest’s social which provides services to the Company as and services, e.g. road access and performance commitments. well as local community. We also invested more maintenance, clean water supply; than USD 2 million in local high schools through The new Social Performance Standard • Income-generating activities, e.g. local administration of the Provincial Tax Credit amalgamated the previous eight level business development, goods Scheme. The Company also provides further stand-alone Community Standards, and services and support for local opportunities for employment, skill and and brought in areas of practice not agricultural businesses; and, knowledge development, and is committed covered formerly in those Community • Improved community lifestyle, to sound environmental management. Such Standards. The introduced areas e.g. sponsorship of regional events significant commercial investments have lasting of practice include: and activities. positive benefits on the health and wellbeing • Free Prior and Informed Consent Newcrest also seeks to deliver community of the local community for years to come. • Resettlement and Economic benefits through local institutions. As Newcrest continues to improve and Displacement By maximising involvement in tandem evaluate the effectiveness of its local • Indigenous Peoples with capacity and capability development community programs to support community • Human Rights. support over time, the long-term aim development, it was reported in FY2015 that is to embed community self-reliance. some internal audits identified weaknesses in system management (e.g. documentation alignment with standards, reporting 44

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Local community development and investment continued

The incorporation of formal statements A Social Performance competency Community development initiatives are with respect to Indigenous Peoples and development program has also been primarily delivered via programs that Human Rights ensures that the new initiated in association with the University have been agreed with local communities; Standard is consistent with Newcrest of Queensland’s Centre for Social contributions to the health and education Human Rights Policy. Responsibility in Mining to train Social sectors tend to focus on support for Performance professionals. government institutions as these fall under The new Social Performance Standard is core government function and responsibility. supported by Social Performance Definitions. All Newcrest’s operations are expected to An update of the Social Performance demonstrate social performance capability Community benefits streams are being Guidelines, that recommend best-practice and competence based on the new Standard targeted towards sustainable outcomes social performance interactions and within 24 months. that will support and serve the community activities identified in the new Standard, in a post mining environment, whenever • Improved social awareness will be completed in FY2017. that transition might occur. Newcrest ensures that all employees • Improving capabilities understand and respect local culture • Integrated Social Closure Planning Separating out System Requirements and local people through site-based social Over the last year, these proactive initiatives from the Thematic Requirements awareness training. Trained on matters have been further augmented by Newcrest’s (such as those listed above) within the of local cultural norms and expectations, commitment to improved transparency Standard further enables improvements employees are required to acknowledge and community engagement in the area in Social Performance management and apply those learnings in their day-to-day of Social Closure Planning with executive practices, including: engagement. Where practicable, such as level endorsement for a cross-functional • Social Risk Management processes; at our Telfer and Lihir operations, local integrated process approach focused on: people are engaged in the delivery of these • Training and competency; • Maximising capability building, primarily awareness sessions. • Legal requirements; through education and training to build self-sufficiency and economic • Documentation; • Community programs independence within communities • Community Incidents; and, Across the business, site community for the long term; • Grievance management. relations teams are responsible for day-to-day engagement with local • Ensuring community involvement A capability uplift program was initiated community members and stakeholder and engagement in the determination in FY2016, in tandem with these system institutions. Included here are oversight and delivery of community requirements, focused initially on our and/or delivery of community investment; and, Lihir and Gosowong operations. development programs. • Preparing the community for the post-mining environment.

CASE STUDY

Making a positive social impact in the Pilbara

In late 2015, Newcrest signed an Indigenous protection, and transparency in planning Ngurra Kujungka is a community-run sports Land Use Agreement with the Martu people, and environmental protection. organisation based in the Western Desert. the traditional owners of the land The program is the evolution of the desert The agreement – the most significant surrounding its Telfer gold mine in the sport and recreation program, developed in the mine’s 40-year history – formalises Pilbara, Western Australia. by Newcrest and the Martu in the early the already strong relationship between 2000s. Today, with ongoing support The agreement will see Newcrest pay more the miner and the Martu people, and from Newcrest and the West Australian than $18 million over five years through builds on a broad range of initiatives Department of Sports and Recreation, a series of annual payments to the Western which are delivering positive social it is increasing engagement in sports for Desert Lands Aboriginal Council and a trust and economic outcomes. hundreds of school-aged children and adults, for the benefit of the Martu, after which More than 400 indigenous people, mostly boosting school attendance and building a revenue-based payment from mining Martu, have participated in Telfer training pathways to training and employment. in the agreement area will apply. programs, and many have gone on to It also commits Newcrest to continue work at Newcrest or in other areas providing employment and training of the mining industry. opportunities, strengthened heritage NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 45

CASE STUDY

UNDP Partnership and Future Direction

UNDP farming project.

In 2011, Newcrest and the United Nations By the end of 2015, the UNDP submitted The total budget amount made available Development Program in CÔte d’Ivoire a final mission report, which identified the by Newcrest CÔte d’Ivoire was approximately (UNDP) formalised a partnership, to progress and status of each project. USD 1.3 million. encompass a period until 2015, in the first Furthermore, project acceptability and The report concludes that the programme instance. The objective of this partnership improvement opportunities were identified. had: 1) reinforced local capacities in terms consisted in offsetting the non-mitigatable, Several ongoing projects were proposed of planning, coordination and monitoring residual impacts of mining through social to be included in the CDLM program and of actions in the fight against poverty; investments, aiming to leave a positive UNDP committed to provide further support 2) sustainably developed the economic legacy and strengthen the social licence during this transitional process in 2016. capacities of disadvantaged populations, to operate. At the onset of the program, Some key activities included: especially youth; and 3) contributed a participatory needs analysis was conducted, to better access of basic social services leading to the local development plan (LDP) • Revenue-generating activities as well as improving quality of life. in the Hire sub-prefecture. Based on this developed from a rotating support LDP, an array of projects were proposed fund for micro-businesses; While Newcrest is fully committed to and implemented in the areas of health, • Local farming and agricultural projects; support the CDLM program, it will continue agriculture, infrastructure and education. • Business and agricultural opportunities to conduct targeted social projects above This partnership facilitated a neutral and for women formerly associated with and beyond the required obligations. This independent involvement of Newcrest local artisanal mining practices; approach enables Newcrest to provide through a reputable and well-established • Urban Solid Waste Management; rapid projects complementing potential program enabling a true ownership of • Improved learning conditions for gaps within the CDLM program and focus these projects by the local community. municipal high school students; on issues relating to post-closure land use, sustainable local economic development Recent mining legislative development • Establishment of a new Urban Heath and agricultural projects to promote brought about the new concept of making Centre (UHS) in Hire; and, a positive legacy. social investments mandatory, to an • WATTA FM radio station for equivalent amount of 0.5 percent of the strengthening social cohesion. mining revenue, which was paid during the reporting period. Newcrest, in compliance with this new legislation, agreed with UNDP to bring the program to an end by December 2015 and to ensure that the social investment activities would be incorporated in a new governmental social investment program for the mining sector (referred to as the Local Mining and Development Committee or CDLM). 46

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Managing government and community expectations

Newcrest seeks to have input into the GRIEVANCE MECHANISMS OUR APPROACH development of relevant government policy We understand that our operations impact mainly via its membership of industry bodies communities in different ways and there are in the various jurisdictions in which we operate. often competing views among Newcrest’s Newcrest seeks ongoing, active, inclusive However, from time to time, Newcrest makes stakeholders about how best to resolve issues. engagement with governments and submissions and representations in its own Each site has systems to record issues and communities in the areas where we operate. right, especially where there is a potentially community complaints. Standardised policies We understand that different stakeholders disproportionate or significant impact and practices for managing significant disputes have differing views about, and expectations on our Company. and grievances with the community are an from our activities. This can cover a wide range important goal as part of the implementation of matters, including economic, environmental LOCAL COMMUNITY ENGAGEMENT of Newcrest’s Social Performance Standard. and social responsibility matters. We engage At all our operations, teams conduct local in constructive debate, give and seek feedback, community engagement and development MANAGING BROADER respect other points of view, and understand programs, and form various committees SOCIO-ECONOMIC IMPACTS and are considerate of others. to help address our impacts. Under the new ACROSS COMMUNITIES A challenge for Newcrest remains that many Social Performance Standard endorsed of our stakeholders may be unaware of by Newcrest’s Executive Committee in March 2016, all Newcrest operating sites are required the full range of community investment OUR APPROACH or capacity building we undertake or fund to conduct a Community Baseline Assessment directly or indirectly. We continue to work and a Social Impact Assessment prior to with our stakeholders on increasing awareness project start-up. Not all sites have done so Newcrest recognises its activities have and educating people on the nature of our historically, with most sites having carried the potential to impact the economy, business. This enables them to understand out a combined Socio-Economic Impact society and environment of the countries, our perspective and our actions. For example, Assessment (SEIS) as part of permitting regions and communities where we operate. at Lihir, the General Manager holds quarterly procedures. The new Standard requires An open and constructive approach to community briefings with the three tiers of government, that a ‘social impact assessment’ be engagement and investment is critical to as well as on-island ‘town hall’ events, including conducted as a separate technical exercise maintaining Newcrest’s social licence to operate Q&A sessions, with the local community. apart from Environmental Impact Assessments, and ensuring that communities see lasting which have been implemented at all our sites. benefits from Newcrest’s operations. Our We also actively engage both directly and We continue to integrate various community approach to working with local communities, indirectly (for example, through industry groups initiatives consistently across the Company, and assessing and managing impacts on them, such as the Minerals Council of Australia and e.g. formal local community grievance is guided by our Communities Policy and related PNG Chamber of Mines and Petroleum) with mechanisms. During the year, Telfer formalised standards. The Communities Policy sets out the government and other stakeholders on policy its local community grievance process through key principles that are designed to guide our and reforms. Proper consultation processes the Indigenous Land Use Agreement (ILUA) engagement with communities, which are to: are critical to any reform process and Newcrest with the Martu people. seeks to participate and contribute on relevant • Identify the cultural values, traditions issues to assist with informed discussion Community relations teams at each site and beliefs of the communities, including and consideration. are responsible for building and maintaining Indigenous peoples, and respect and on-the-ground relationships with the local respond to those values and belief systems; ADAPTING TO GEOPOLITICAL AND community and relevant stakeholders. • Be open and transparent when dealing LEGISLATIVE CHANGES They work closely with local communities with communities and in describing A key consideration for the extractive industry, to design and implement programs to meet and explaining potential social and which by its nature is high risk and capital the community’s long-term needs in a manner environmental impacts that might occur; intensive, is fiscal and regulatory certainty. that is respectful of local culture and traditions. • Seek broad community support for During the reporting period, fiscal and/or It is a requirement of the Newcrest Social our activities; regulatory reviews were underway in every Performance Standards that sites commission • Commit to developing long-term jurisdiction in which the Company operated. independent community baseline and social partnerships that are mutually beneficial This included a review of state government impact assessment studies to inform project over a life of mine time scale; royalty on gold revenue in Western Australia development and planning. It is Newcrest’s • Ensure that communities are fairly and wide-ranging reviews of mining and intention that this process becomes compensated for impacts and obtain tax legislation in Papua New Guinea and standard practice across all sites and a fair share in the benefits generated CÔte d’Ivoire. for all future development. by a development; • Work to apply internationally recognised principles of best practice in all fields of endeavour; and, • Newcrest will at all times adhere to the laws and regulations of the country in which it is operating. we aremeetingtheseobligations. and communitystakeholders toensure This provides accountabilitytoourgovernment the proportionspentonlocalcontractors. data onourprocurementactivities,including meetings withgovernment bodiestoprovide on localcontracting obligationsisregular A criticalmechanismfor providing transparency to meetitsobligations. works collaboratively withlocalstakeholders community misunderstanding,Newcrest contracting’. To minimisetheriskof in relationtowhatclassifiesas‘local obligations vary accordingtosite,including of minerelatedgoodsandservices.Newcrest’s to prefer localcontractors for theprocurement and otheragreementsrequireNewcrest At several ofoursites,locallaws,landaccess suppliers’ capabilitiesandcapacities. social andeconomicchangeby enhancinglocal to partnerwithorganisationshelpcreate offers afurtheropportunityfor employment and products andservicesfromlocalcontractors is throughourprocurementactivity. Procuring and regionalcommunitieseconomies A way inwhichNewcrest cansupportlocal PROCUREMENT LOCAL EMPLOYMENT AND Lihir. OUR APPROACH

employees withwhomthey areworking. with anobligationtoup-skill national stream we mayemploy asuitablenon-citizen available withinthelocalornationalsourcing Where specialisttechnicalskills arenot to opportunitiesismeritbased. maintaining aprocesswhereaccess of EqualEmployment Opportunity(EEO), favour inaccordance withtheprinciples for localemployment isundertaken without Outside ofthesecommitments,selection Province; andthenotherareasinPNG. order: LihirIslandGroup;New Ireland available, priorityisgiven inthefollowing Province, wheresuitablecandidatesare For thepurposeofLihirandNew Ireland of operation. of thelocalcommunityandspecificcountry preference for employment tothepeople Employee Policy, eachsitestrives togive In accordancewithNewcrest’s International we meetourtargetsonanannualbasis. wherever practicable andtoensure of ourresponsibilitiestoprocurelocally award contracts. This includesconsideration process thatsetsoutthecriteriaby whichto this isourdefinedprocurementlife cycle on anongoingbasis,andakey way ofensuring our sitesoperate. Itisourdutytomeetthese by thelegalandregulatoryframework inwhich local contracting requirementsareinfluenced Our landaccessobligationsandtheassociated

NEWCREST MINING LIMITED SUSTAINABILITYNEWCREST REPORT 2016 Thesedefinitionsarelistedonpage. Definitionsfor ‘localcommunities’aresite-specific. * USD 69 during FY2016 local communities invested into by siteFY2016(%)* management fromlocalcommunity Graph 9:Proportionofsenior Cadia 100

Gosowong 5.6

Lihir 20

Telfer 100 M 47 48

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Managing government and community expectations continued

SUPPLY CHAIN STEWARDSHIP All Newcrest’s suppliers are expected to act with integrity and in accordance with OUR PERFORMANCE the Company’s ethical position, including OUR APPROACH compliance with Newcrest’s Human Rights Policy, Anti-Bribery and Corruption Policy In FY2016, Newcrest’s global operating and Code of Conduct. Compliance with procurement expenditures on goods and Newcrest is committed to achieving an these policies and procedures are a services totalled more than USD 1.9 billion. excellent standard of supply chain management contractual requirement of all Newcrest’s Of this, around 55 percent was spent in and performance in all its business activities. supply agreements. Australia, 32 percent in Papua New Guinea, Our intent is to have the lowest total cost 8 percent in Indonesia and 5 percent of ownership while ensuring safety, quality Where safety, quality and service can be in West Africa. and service. ensured, recognition is given to local suppliers. For example, Lihir landowner company Anitua During the reporting period, the Supply Newcrest’s Supply and Logistics approach Radial Drilling Services (ARDS) overcame team utilised Newcrest’s Edge methodology supports the value chain through the facilitation open market national competition during the and leading practices to analyse the supply of appropriate contracts; management of reporting period to be awarded the contract chain and drive outcomes for the business. supplier’s performance to ensure the right for drilling works, while another Lihir landowner By focusing on leading valuable deals, value is achieved from each relationship; and company, National Catering Services (NCS), the team was able to make significant management of the inbound logistics process were awarded the catering and camp savings, without compromising safety, with suppliers, as well as the storage, management contract for the Lihir operation. quality and service. distribution and control of Newcrest inventory. Risks are managed through a series of The Company’s Supply Policy provides a high processes, including off-site receipting for level overview of Newcrest’s supply chain our Lihir and Gosowong operations, managing principles, including that suppliers and their relationships with suppliers and proactive and representatives are treated fairly, without continuous review of inventory levels (safety bias or prejudice, and that competition will stock) through SAP monitoring. be open and fair. All pricing exercises involve eligible national In evaluating potential suppliers, considered and local suppliers in the market engagement weighting is given to both financial and process on equal footing with others. non-financial criteria. For commodity-based agreements, financial criteria, such as financial strength and company structure, are important. For service-based agreements, significant weighting and consideration is given to non-financial criteria, including factors such as safety record, sustainability approach, culture and ability to meet statutory requirements such as licences, permits and relevant standards.

USD 700M spent on supplies in PNG

NCS supports our operations in Papua New Guinea (PNG). NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 49

Land acquisition and resettlement

applicable domestic laws where we operate, stakeholders. The land surveyor’s team first OUR APPROACH and at times commissions external specialist confirmed the participating landowners and expertise to seek alignment with IFC user mapping process initiated during the SEIA, Performance Standard 5, e.g. Konankro which included agricultural inventories across Newcrest utilises a range of tools to inform the resettlement action plan in Côte d’Ivoire. the anticipated footprint within the Hiré mining design of its community approach and programs The intent of this element of the Standard lease. Subsequently, all 109 landowner tracts across all operations. Social impact assessment is to ‘ensure that access to all land required and the 2,054 nested land user plots were studies (SIAs) are performed to enable sites for mining operations is acquired through properly compensated through a thorough to identify, understand and respond to the negotiation and agreement with appropriate process, initiated in 2014 and finalised potential and actual socioeconomic impacts landowners or land owning groups’. by early 2016. of new projects, expansions of, or significant modifications to, existing operations and mine As an example of the approach to land Our long-term focus is on completing closures. Effectively delivered, SIAs support acquisition by Newcrest, the Company resettlement and reporting against an the application of Newcrest’s Communities commenced its comprehensive land acquisition international standard resettlement action Policy through identifying opportunities for process at Hiré by defining the methodology plans (RAP), securing adequate land and security communities to obtain a fair share of benefits during its social and environmental impact of tenure for resettled families, ensuring generated by the operation and its activities. assessment, which commenced in 2012 and adequate facilities and infrastructure are They also identify ways to mitigate and manage was approved in 2013. In order to achieve an in place and helping to secure a replacement any adverse impacts, for instance in situations equitable compensation process, a land and or alternative livelihood base for resettled where an individual family or community needs crop compensation tariff rate was negotiated communities. Integrating relocated families to be relocated. between Newcrest and the landholders, under or communities into a local government the supervision of the regional government. planning and management framework to Our approach to land acquisition, relocation Once the final footprint and the construction mitigate against long-term dependency is also and resettlement aims to align with sequence was defined by the mining engineers a key objective of our resettlement planning. international best practice. In particular, as part of the final feasibility study, the Newcrest applies a Company-wide Social sequential land acquisition process was Performance Standard, which includes specific implemented through the direct supervision sections dealing with land acquisition and of the regional and local government, involuntary resettlement. The Standard adopts and carried out by a certified land surveyor. the International Finance Corporation (IFC) Concomitant to this process, a series of Performance Standard 5: Land Acquisition and community consultations was conducted Involuntary Resettlement and progressively to formalise the land compensation applies this Standard to align with international payments with all potentially affected best practice. Further, Newcrest acknowledges

0 community resettlements during FY2016

Newly developed resettlement village, Bonikro. 50

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Environmental Stewardship Newcrest is committed to achieving an excellent standard of environmental performance in all its business activities in accordance with the Newcrest Environmental Policy.

Water monitoring, Lihir. and identifyimprovement actions. practicality ofimplementingthestandard conducted atourminestoassessthe Water Standard,gapassessmentswere As partofchangemanagementfor therevised required, gobeyond regulatoryrequirements. in placefor eachofoursitesand,where and enhancethewater monitoringprograms The Standardisintendedtocomplement risk-based implementationatoursites. management inFY2017andprogressive Standard was revised for review by During thereportingperiod,our Water page 59inthisReport). in theSustainabilityReport(refer water to of accounting framework tosupportthereporting the Minerals CouncilofAustralia water and managerisks.Newcrest hasadopted requirements tomitigatepotentialimpacts in accordancewithregulatoryandinternal discharge volumes andqualityaremonitored reduce consumptionofwater. Water extraction, Where practical, water isalsorecycled to groundwater, seawater andminedewatering. a variety ofsourcessuchassurface water, stable production.Oursitesusewater from as acomponentofsustainableoperation and important consideration for eachofoursites Efficient andresponsibleuseofwater isan Water management at Cadia’s tailings dam. Mine technician,Ebben Hawken, OUR APPROACH OUR PERFORMANCE

on water aspectsoftheNamosiProject inFiji. Detailed EISstudieswere alsoprogressed potential environmentalimpactsoftheproject. conducted alongwithsitesamplingtoassess extensive water studiesandmodellingwere in FY2016for the Wafi-Golpu Project inPNG, During EnvironmentalImpactStudies(EIS) at Londolovit River. and regulatoronwater managementaspects is continuingtoconsultwiththecommunity has beenlodgedwiththeregulator. Lihir and technicalfindingsoftheaudit,which Improvement Plantoaddresstheenvironmental Lihir hasdeveloped anEnvironmental baseflow conditionsinLondolovit River. improvement opportunitiesfor maintaining the scopeofanexternal auditthatidentified the regulatorandcommunitygrouptodefine community group.Newcrest engagedwith at Londolovit River was raised by aLondolovit community grievance regardingwater use with regulatorybodies.DuringFY2016,a with siteteamsor, ifrequired,inconsultation addressed throughdirectengagement in relationtowater would continuetobe Under theStandard,communitygrievances water recycling andefficiency. and regularlyassessopportunitiestoimprove to applyappropriatecontrolsfor water risks and water balanceareintendedtobeused management planandwater balance. The plan to assesswater risksandmaintainawater The StandardrequireseachNewcrest site

NEWCREST MINING LIMITED SUSTAINABILITYNEWCREST REPORT 2016 * Excludes seawater. ** Figurebasedonwater consumed. * by siteFY2016(ML) Graph 10:Totalwaterwithdrawn Bonikro* 2,980

Cadia 20,754

Gosowong 6,605

Hidden Valley 7,857

Lihir** 30,858

Namosi 0

Telfer 18,617 51 52

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Water management continued

As part of stable operation, the risks of water supply are periodically reviewed by each site, including potential impacts on neighbouring communities and mitigation measures applied where required. During FY2016, Lihir developed and implemented a variety of water efficiency improvements during a drought period (refer to case study) while maintaining water supply to neighbouring villages. Cadia also proactively used their water balance to refine water storage levels and pump operating schedules for substantial water and energy savings (refer to case study).

CASE STUDY

Water improvements at Lihir during drought conditions

In response to drought conditions A water study was also undertaken at Lihir during the reporting period, the site to review additional water sources formed a multidisciplinary water efficiency for potential future use. project team to maintain community water Components of the water efficiency project supplies and continue production while related to stakeholder engagement and managing potential environmental impacts. process plant improvements also included: The team utilised Newcrest’s business • Mine site, plant site and local awareness improvement methodology, Edge, to deliver campaigns in the township, camp and in five initiatives within the space of eight the broader Lihir community on efficient weeks, resulting in a reduction in fresh use of water; water requirements while maintaining • A maintenance campaign to prevent or increasing mill throughput. unnecessary water leakage from Improvements were based in greater process plant equipment and the monitoring and control of freshwater potable water system; extraction and creating a model (in reference • Refinement of operating strategies to data from past drought events) to for the three milling lines based estimate expected river flows and water on available water; and, availability. Additional freshwater was • Use of seawater to replace freshwater also captured from around the Lihir mine in plant areas resistant to corrosion. pit by redirecting some runoff drainage.

Streamflow gauging, Lihir.

CASE STUDY

Balancing water management at Cadia

Water is a critical input to the ore processing The majority of Cadia’s water sources rely During the reporting period, a technical system at Cadia; it is used to transport heavily on seasonal rainfall; prolonged dry project was conducted to analyse the best crushed ore through the flotation cells to periods can reduce water storages and, options for sourcing water, taking into extract metals, transport crushed waste rock similarly, extended wet periods can increase account water reliability risk, environmental (tailings) to the tailings storage facilities and the risk of oversupply and water discharge. risk and cost factors. By reducing the target for many operational and ancillary purposes. water storage and priorities, less water Over the past two years, Cadia has been, was extracted and the lowest energy There are several sources of water that are developing and refining a detailed water requirement sources were prioritised. utilised at Cadia, including extraction from balance for the site. The water balance local rivers and streams, treated effluent is used to guide day-to-day decisions The project reduced electricity requirements from Orange and Blayney, captured rainfall, on water extraction and climate risk for water extraction by approximately and minor groundwater extraction. with the aim of maintaining high water 50 percent and resulted in an estimated reliability and security for the site and 250 millilitres water saving from reduced low risk of oversupply and discharge. evaporation during FY2016. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 53

Closure planning

impacts from the block caving subsidence Table 7: Operations with mine closure plans OUR APPROACH zone with maintenance of the offset to be in place in FY2016 integrated into their closure plan. Cadia also continued progressive rehabilitation in Bonikro Newcrest’s Mine Closure Standard includes accordance with environmental management requirements for a multidisciplinary approach plans lodged with the regulator and continues Cadia to closure planning that meets regulatory monitor rehabilitation unit rates for inclusion Gosowong requirements. It also takes into consideration in future cost estimates. stakeholder expectations in reference to predicted land use and management of Meeting regional legal requirements is a Hidden Valley minimum requirement of the Closure Standard, biodiversity aspects and provides a basis Lihir for financial provisions. along with internal requirements to promote consistent performance across our sites. Telfer At Bonikro, closure planning had previously OUR PERFORMANCE been prepared as integrated sections of Social and Environment Impact Assessments in accordance with government requirements. During the reporting period, reviews were During the reporting period, three separate conducted on the cost accuracy of selected and detailed mine closure plans for each closure plans for Newcrest sites, in comparison of the site’s satellite mine areas (i.e. Bonikro, to the requirements of our Closure Standard. Hiré and Dougbafla) were developed in The reviews resulted in the development reference to the Newcrest Closure Standard, of site-specific forward work plans and action going beyond local regulatory requirements. plans to help address knowledge gaps and Update of Bonikro’s three mine closure improve the cost accuracy of closure plans. plans also led to additional improvements in The total mine closure provision as at rehabilitation activities (refer to case study) 30 June 2016 is USD 353 million. and Hiré’s waste rock dumps were redesigned to create a stable landform for closure. As part of closure planning, sites are required to consider suitable post-closure land uses and develop steps to mitigate potential impacts on biodiversity. During the reporting period, Cadia has been establishing a biodiversity offset area to mitigate potential

CASE STUDY

Progressive rehabilitation work at Bonikro

Bonikro’s Mine Closure Plan was progressed Rehabilitation of the Eastern Waste Dump at Tipper trucks transported topsoil from during the reporting period in line with Bonikro utilised topsoil that needed to be the TSF basin and soil was placed according Newcrest’s Mine Closure Standard. Based cleared and removed from a tailings storage to the rehabilitation sequence. The on the Mine Closure Plan, progressive facility (TSF) expansion. A local contractor rehabilitation activity took place during the rehabilitation work was undertaken at was employed to complete the stripping wet season to promote faster revegetation. site, reducing the timeframe and cost and placement of topsoil on the waste dump. for rehabilitation at the end of mine life. Access to the top of the waste dump was developed by creating temporary ramps During the reporting period, approximately using excavators and dozers. This machinery 13.8 hectares of the Eastern Waste Dump was also used to shape and flatten waste was rehabilitated, while preparation work rock to enable placement of topsoil. was conducted at the Western Waste Dump to readiness for future rehabilitation work. • • • • • management, including: the following focus areasfor ongoing facilities conductedduringFY2016identified Risk reviews ofon-landtailingstorage and internalrequirements. regularly inspectedaccordingtoregulatory tailings storage facilities (TSFs) thatare Gosowong, tailingsarestoredinengineered sites andatHidden Valley, Bonikroand minerals have been extracted. AtourAustralian the economicallyrecoverable metalsand Tailings arethewaste materialfromoreafter DEEP SEA TAILINGS PLACEMENT TAILINGS MANAGEMENT AND of thismethodandalternatives. extensive environmentalimpactassessment with theLihirenvironmentalpermitsfollowing method hasbeenadoptedinaccordance rock placement. This waste rockplacement disposed ofviaoffshoresubmarinewaste for constructionpurposes,waste rockis case ofLihir, otherthanwaste rockused construction (suchasroadbase).Inthe structures or, whenappropriate,usedfor purpose-built, engineeredwaste rockdump from miningactivitiesisdisposedofin by Newcrest, otherthanLihir, waste rock and milledeconomically. Atallsites operated material thatistoolow ingrade tobemined (non-mineralised) rockinamineormineralised Waste rockisdefinedasthebarren WASTE ROCK geochemical andphysicalstability. an ongoingbasistofacilitate long-term waste streams,whicharemanagedon Waste rockandtailingsareourtwo largest 54 Waste andtailingsmanagement CEO THE FROM MESSAGE response plans. Regular updateofemergency Project tracking duringconstruction; and, Regular peerreview processes; Ongoing validation ofdesigndata; of relevant managementmethods; categories toguidetheapplication Regular review ofriskconsequence OUR APPROACH WE ARE WE WHO THIS REPORT ABOUT

IN REVIEW THE YEAR Environmental Management System (EMS). Environmental ManagementSystem(EMS). also maintainsanISO14001certified been lodgedwiththeregulatorandLihir and ManagementPlan(EMMP)thathas based onanEnvironmentalMonitoring Monitoring oftheDSTP systemisundertaken Lihir DSTP systemby thePNGgovernment. undertaken priortotheapproval ofthe environmental andsocialstudieswere method for Lihir. Rigoroustechnical, chosen asthepreferred tailingsmanagement Deep Sea Tailings Placement(DSTP) was of social,environmentalandsafety aspects, Following acomprehensive riskassessment • to waste rockortailingsmanagement. environmental incidentsoccurredrelated During thereportingperiod,two significant •

One incident at Lihir resulted from One incidentatLihirresultedfrom Bonikro Tailings Storage Facility. to collecttailingsandpumpthemthe which includedtheinstallationofasump to siteinspectremediationmeasures, of theincidentandregulatorwas invited regulator andthecommunitywere notified resulting inareleaseoftailings. The the integrityofanearby tailingspipeline shrub-land thatisbelieved tohave affected a releaseoftailingsfollowing afirein A secondincidentatBonikroinvolved environmental impacts. were collectedtomonitorfor potential representatives were advisedandsamples to theregulatorandcommunity Luise Harbour. The incidentwas reported reached astormwater drain leadingto be shutdown andaquantityofmaterial capacity ofthebundbefore theplantcould The groundmaterialexceeded the the mill(priortoprocessingintotailings). an overflow ofground orematerialfrom OUR PERFORMANCE PEOPLE OUR

PERFORMANCE ECONOMIC

PERFORMANCE SOCIAL

Telfer only. * • • • • management includedthefollowing: period relatedtowaste rockandtailings Site andprojectactivitiesduringthereporting FY2016 (t) Graph 11:Totalwastebytype STEWARDSHIP ENVIRONMENTAL

Overburden 4,053,486 on oppositepage). dust suppressiontrial(seecasestudy to managetailings,includinganaerial Cadia investigated innovative ways dam tohelpextend thelife oftheoperation. Bonikro commencedaliftontheirtailings following regulatoryreview ofthedesign. expansion oftheirtailingsstorage facility engineers. Gosowong commencedan the observation ofsite-basedexternal tailings storage facility continuedunder At Hidden Valley, constructionoftheir Tailing Placement. potential futureapplicationofDeepSea to assessthesuitabilityofregionfor assessed andstudiesalsocommenced on-land tailingsstorage facilities were Wafi-Golpu projectinPNG,optionsfor During development ofNewcrest’s access toadditionalore. reduce seawater ingressandenable an impermeablebarrierthatwould waste frompitexpansion andconstruct approach was developed toutiliseclay Lihir PitOptimisationProject, aninnovative During pre-feasibility assessmentofthe third partypeerreview. specialists andinsomecasesalsoinvolved were conductedinconjunctionwithexternal improvement opportunities. The reviews of managementsystemsandidentify assess currentperformance, effectiveness storage facilities ateachofoursitesto Newcrest conductedreviews ofthetailings

Waste rock 23,472,206 Tailings and sludges 58,689,754 Potentially acid

5,006,384 forming (PAF)* TABLES DATA Dump Leach* 819,693

STATEMENT ASSURANCE

NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 55

CASE STUDY

Cadia tailings dust suppression trial

Helicopter applying dust suppressant to Cadia tailings storage facility.

Cadia conducted an aerial dust suppression rely on land access, could target the dry In total, an estimated 91,000 litres of dust trial on the surface of their northern tailings areas, and could be done during the hot, suppressant fluid was applied to the surface storage facility. Generally, wet tailings are dry and windy weather conditions. of the tailings storage facility. Despite continually deposited on the surface of the the adverse hot, dry and windy weather During the trial, Cadia worked with storage facility suppressing dust. From time conditions, air quality monitoring at Commercial Helicopters and Reynolds to time, there can be areas that cannot be neighbouring properties was compliant Soil Technologies to develop a solution. covered by the tailings slurry and these areas with mine approvals. The dust suppression trial utilised a Bell can become dry and generate dust during 412 helicopter with a 1,400-litre belly tank, Cadia will continue to focus on using hot, dry and windy conditions. normally used in aerial bush fighting, applying controlled deposition of tailings slurry to While the tailings can be dry on the surface, a dust suppressant product mixed with water manage dust suppression from the tailings the underlying material is still quite wet and to the dry areas of tailings. The helicopter storage facilities, with periodic utilisation not sufficiently stable to support access by was used on three separate days, with the of a helicopter to place dust suppressant personnel or machinery. Further complicating pilot targeting the dry areas where dust fluid in targeted areas during dry periods the situation is the size of the facility, with could be seen lifting from the surface. where increased dust is experienced. some dry areas more than one kilometre The helicopter continued operating each from the dam wall. These access restrictions day until no wind-blown dust could be seen. required developing a solution that did not

92MT total waste FY2016

Environmental Advisors Lindsay Hyde and Adiratma Endro overlooking the tailings storage facility at Cadia. 56

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Energy and climate change

Data from information reported in October OUR APPROACH OUR PERFORMANCE 2016 on tonnes of carbon dioxide emitted were consistent with values from the previous year. It is noted, however, that the Scope 1 Newcrest seeks to utilise energy efficiently Newcrest reports on greenhouse gas emissions emissions from Telfer, which generates its to minimise both our overall energy use and from its Australian activities as part of the own power from natural gas fired turbines, potential greenhouse gas emissions per Australian Government’s National Greenhouse are many times higher than the emissions from unit of gold produced at our operations. and Energy Reporting (NGER) scheme, Cadia, which purchases electricity from the We participate in a Minerals Council a mandatory reporting system for greenhouse grid and has progressively installed conveyors of Australia working group to monitor gas emissions, energy production and to move ore that helps reduce diesel emissions environmental regulatory conditions relating consumption, which applies to companies from truck operations. to climate change and greenhouse gas above a certain threshold of emissions. emissions and adapt our operations to Newcrest reports on gross Scope 1 emissions As a component of climate change adaptation, changing requirements as needed, e.g. changes (fuel and energy produced or consumed and climate related aspects are considered to carbon tax. Newcrest is subject to a number greenhouse gas emissions produced directly in proposed final landform design and of clean energy initiatives in Australia, including by the Company) and gross Scope 2 emissions post-closure land uses. the carbon emission-related Clean Energy (greenhouse gas emissions from consumption legislation, state and federally based of electricity, heat or steam imported from renewables programs and the New South sources outside the Company boundaries) at Wales Energy Savings Scheme. each of Newcrest’s Australian facilities. Refer to http://www.climatechange.gov.au/reporting Newcrest actively manages its profile with for further information. regard to climate change developments and associated regulatory programs. Actions are led by the corporate Energy and Environment functions and include the key focus areas of operational performance, compliance, data collection, energy efficiency and involvement in industry bodies associated with regulatory processes in Australia and overseas.

Cadia air quality monitoring station. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 57

Data Tables

Lihir. 58

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

ENVIRONMENT FY2016 FY2015 FY2014 FY2013 MM1 Total land disturbed and not yet rehabilitated prior to reporting period (ha) (A) Company 8,182 8,843 7,553 7,893 Lihir 703 1,300 750 936 Telfer 5,194 4,690 4,261 4,101 Cadia 1,285 1,359 1,949 1,713 Gosowong 189 367 NA* 353 Hidden Valley 744 530 NA* NA* Bonikro 44 562 562 562 Exploration 0 0 0 0 Namosi 22 31 31 83 Wafi-Golpu 0 4 NA* 145 Corporate Offices – – – – Total amount of land newly disturbed within the reporting period (ha) (B) Company 750 750 984 1,073 Lihir 43 708 746 750 Telfer 504 0 145 160 Cadia 0 0 89 154 Gosowong 200 0 0 7 Hidden Valley 2 40 NA* NA* Bonikro 0 0 NA* 0 Exploration 0 0 0 0 Namosi 1 0 4 2 Wafi-Golpu 0 2 NA* NA* Corporate Offices – – – – Total amount of land newly rehabilitated within the reporting period to the agreed end use (ha) (C) Company 240 286 313 307 Lihir 0 231 192 186 Telfer 0 0 4 4 Cadia 36 36 108 88 Gosowong 189 11 0 14 Hidden Valley 0 3 NA* NA* Bonikro 14 0 0 NA* Exploration 0 0 0 0 Namosi 1 2 9 9 Wafi-Golpu 0 3 0 6 Corporate Offices – – – – Total land disturbed and not yet rehabilitated (ha) (D = A+B-C) Company 8,691 9,307 8,713 8,377 Lihir 746 1,777 1,300 1,314 Telfer 5,697 4,690 4,886 4,176 Cadia 1,249 1,323 1,764 1,779 Gosowong 200 356 180 340 Hidden Valley 746 567 NA* NA* Bonikro 31 562 NA* NA* Exploration 0 0 0 0 Namosi 22 29 21 74 Wafi-Golpu 0 3 0 132 Corporate Offices – – – –

* ‘NA’ is ‘not available’. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 59

FY2016 FY2015 FY2014 FY2013 MM3 Total waste rock (kt) Company 23,472 27,677 62,058 116,858 Lihir 1,505 5,934 12,077 11,832 Telfer 6,688 7,221 20,795 61,450 Cadia 0 6 51 613 Gosowong 263 325 4,839 6,264 Hidden Valley 3,613 8,383 16,485 17,872 Bonikro 11,404 5,808 7,811 18,827 Exploration – – – – Namosi – – – – Wafi-Golpu – – – – Corporate Offices – – – – Total tailings (kt) Company 58,690 61,852 57,596 60,585 Lihir 12,936 10,775 9,929 6,936 Telfer 17,559 21,918 21,124 21,376 Cadia 21,749 22,797 19,741 25,300 Gosowong 479 738 826 822 Hidden Valley 3,456 3,647 4,002 3,640 Bonikro 2,510 1,976 1,974 2,512 Exploration – – – – Namosi – – – – Wafi-Golpu – – – – Corporate Offices – – – – Total waste rock and tailings (kt) 82,162 89,529 119,654 177,443

Company Lihir Telfer Cadia Gosowong Hidden Valley Bonikro Namosi Wafi-Golpu EN8 Total water withdrawal by source (ML) FY2016 Category 1 Surface water 38,550 24,670 0 10,996 1,196 1,428 260 – – Ground water 4,566 0 1,213 20 3,187 (a) 0 146 – – Sea water 0 0 0 0 0 0 0 – – Geothermal water 0 0 0 0 0 0 0 – – Third-party water 2,579 0 0 2,579 0 0 0 – – Total – Water withdrawn by source (Category 1) (ML) 45,695 24,670 1,213 13,595 4,383 1,428 406 – – Category 2 Surface water 23,444 6,188 0 6,031 2,222 6,429 2,574 – – Ground water 18,532 0 17,404 1,128 0 0 0 – – Sea water 226,956 226,956 0 0 0 0 0 – – Geothermal water 0 0 0 0 0 0 0 – – Third-party water 0 0 0 0 0 0 0 – – Total – Water withdrawn by source (Category 2) (ML) 268,933 233,144 17,404 7,159 2,222 6,429 2,574 – – Total – Water withdrawn (ML) 314,627 257,814 18,617 20,754 6,605 7,857 2,980 (b) – –

EN10 Percentage and total volume of water recycled and reused (ML) FY2016 Total volume reused 65,294 0 2,080 54,142 69 6,429 2,574 – – Reused (%) –(c) 0 11 79 (d) 2 82 86 – –

(a) Figure based on groundwater reported in FY2015. (b) Figure based on water consumed. (c) Refer to site level. (d) Total volume reused based on total water used. 60

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

ECONOMIC FY2016 FY2015 FY2014 FY2013 EC1 Total community expenditure (USD M) Lihir 41.6 49.3 62.2 110.2 Telfer 4.5 2.9 2.9 4.7 Cadia 1.8 1.4 1.3 0.8 Gosowong 10.5 16.2 15.7 20.6 Hidden Valley 0.2 0.3 0.8 3.2 Bonikro 3.8 5.6 2.0 2.1 Exploration 0.1 0.1 0.2 0.0 Namosi 0.3 0.4 0.3 0.6 Wafi-Golpu 1.1 0.0 0.9 5.3 Corporate Offices 4.7 4.0 3.0 2.1 Company 68.6 80.2 89.3 149.6 Total revenue 3,295.0 3,604.0 3,707.0 3,859.0 % of revenue 2.08 2.23 2.41 3.88 Total payments to governments (non-recoverable) (USD M) Lihir 20.5 24.9 28.8 44.0 Telfer 21.5 27.9 41.4 49.7 Cadia 36.6 51.6 62.9 37.1 Gosowong 84.4 32.3 66.4 139.5 Hidden Valley 2.5 2.9 4.4 3.9 Bonikro 5.7 4.7 4.0 4.2 Exploration 0.0 0.0 1.8 0.0 Namosi 0.0 0.0 0.0 0.0 Wafi-Golpu 0.0 0.0 0.1 0.0 Corporate Offices (39.8) 1.8 68.8 18.6 Company 131.4 146.1 278.6 297.0 Total revenue 3,295.0 3,604.0 3,707.0 3,859.0 % of revenue 3.99 4.05 7.52 7.70 Total operating costs (USD M) Lihir 638.0 719.0 645.0 432.0 Telfer 460.0 522.0 594.0 742.0 Cadia 448.0 549.0 522.0 581.0 Gosowong 170.0 202.0 207.0 211.0 Hidden Valley 106.0 122.0 131.0 165.0 Bonikro 99.0 77.0 101.0 91.0 Exploration 0.0 0.0 0.0 0.0 Namosi 0.0 0.0 0.0 0.0 Wafi-Golpu 0.0 0.0 0.0 0.0 Corporate Offices 50.0 66.0 88.0 105.0 Company 1,971.0 2,257.0 2,288.0 2,327.0 NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 61

FY2016 FY2015 FY2014 FY2013 EC1 continued Total payments to suppliers (USD M) Lihir 620.8 641.2 781.7 1,289.4 Telfer 447.8 477.3 540.6 1,031.4 Cadia 505.4 622.1 715.0 1,052.5 Gosowong 160.1 177.8 179.5 236.2 Hidden Valley 79.8 130.3 139.4 219.0 Bonikro 92.9 81.9 77.4 166.8 Exploration 20.1 4.4 0.9 0.0 Namosi 0.4 1.8 1.7 10.1 Wafi-Golpu 18.7 20.7 23.6 82.9 Corporate Offices 7.0 7.8 37.9 87.8 Company 1,953.0 2,165.3 2,497.7 4,176.1 Total employees salaries and wages (USD M) Lihir 93.4 96.9 113.8 135.6 Telfer 64.8 73.2 90.2 126.7 Cadia 83.2 104.7 122.4 101.1 Gosowong 45.4 49.4 57.1 51.8 Hidden Valley 16.6 21.7 25.4 23.9 Bonikro 21.1 20.0 24.3 24.3 Exploration 9.3 10.2 11.4 15.2 Namosi 0.1 0.1 0.7 0.8 Wafi-Golpu 0.0 0.0 1.1 1.7 Corporate Offices 50.0 57.7 81.9 114.6 Company 383.9 433.9 528.3 595.7 Total superannuation (USD M) Lihir 6.4 7.0 8.5 10.4 Telfer 5.9 6.5 7.7 11.0 Cadia 7.4 9.2 10.7 8.6 Gosowong 0.0 0.0 0.0 0.0 Hidden Valley 1.7 2.3 2.6 2.5 Bonikro 1.9 1.8 2.0 2.1 Exploration 0.7 0.8 0.9 1.2 Namosi 0.0 0.0 0.1 0.1 Wafi-Golpu 0.0 0.0 0.1 0.2 Corporate Offices 4.6 5.5 7.7 10.2 Company 28.6 33.1 40.3 46.3

Economic value retained (USD M) (e) 1,127.0 1,159.0 1,130.0 1,002.0

(e) Economic value retained is calculated as revenue less operating costs (inclusive of community expenditure, salary and wages), interest, dividends and income tax payments. 62

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

ECONOMIC continued FY2016 FY2015 FY2014 FY2013 EC5 Entry level wage as a percentage of local minimum wage (%) Lihir 141 253 339 194 Telfer 329 331 325 261 Cadia 322 322 319 295 Gosowong 238 144 149 223 Hidden Valley 113 143 185 118 Bonikro 214 197 217 221 Exploration 356 354 354 347 Namosi 140 140 138 133 Wafi-Golpu 143 149 – – Corporate Offices 263 262 262 262

EC6 Proportion of senior management from the local community (%)(f) Company 66.1 11.3 37.3 69.5 Lihir 20.0 0.0 8.3 8.7 Telfer 100.0 0.0 0.0 100.0 Cadia 100.0 100.0 100.0 100.0 Gosowong 5.6 3.4 5.9 4.0 Hidden Valley 0.0 0.0 22.2 24.2 Bonikro 0.0 0.0 9.1 8.3 Exploration NA* NA* NA* NA* Namosi 0.0 75.0 71.4 57.1 Wafi-Golpu 0.0 0.0 – – Corporate Offices – – – –

Goods Services EC9 Percentage of local(g) supplier spend by country, by goods and services (%) FY2016 Company 43 82 Australia 57 93 Papua New Guinea 14 63 Indonesia 66 77 Cote de Ivoire 35 69

(f) Local community employees are defined in FY2016 across our sites as follows: • Lihir – Employees who are PNG nationals. • Telfer – Employees who are Australian nationals or have work rights to work in Australia. • Cadia – Employees who are Australian nationals or have work rights to work in Australia. • Gosowong – Employees who have resided within the North Maluku area for a minimum of five years. • Hidden Valley – Employees who are PNG nationals. • Bonikro – Employees who are Côte d’Ivoiran nationals. • Namosi – Employees who are Fijian nationals. • Wafi-Golpu – Employees who are PNG nationals. (g) Newcrest defines ‘local’ as in-country. * ‘NA’ is ‘not available’. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 63

SOCIAL FY2016 FY2015 FY2014 FY2013 SOCIETY

SO3 Total number and percentage of operations assessed for risks related to corruption Company (#) 4 6 5 5 Lihir 1 1 1 1 Telfer 0 1 1 1 Cadia 0 1 1 1 Gosowong 1 1 1 1 Hidden Valley 1 1 1 1 Bonikro 1 1 0 0 Exploration NA* NA* NA* NA* Namosi NA* NA* NA* NA* Wafi-Golpu NA* NA* NA* NA* Corporate Offices NA* NA* NA* NA* Percentage of operations analysed (%) 67 100 83 83

SO5 Total number of incidents of corruption (#) Company 0 0 0 0

SO6 Total value of financial and in-kind contributions to political parties, politicians and related institutions (USD) Company 0 0 0 0

SO7 Total number of legal actions for anti-competitive behaviour, anti-trust, and monopoly practices (#) Company 0 0 0 0

MM8 Number and percentage of operating sites where artisanal and small-scale mining (ASM) takes places on, or adjacent to the site Company (#) 4 4 4 4 Lihir 0 0 0 0 Telfer 0 0 0 0 Cadia 0 0 0 0 Gosowong 1 1 1 1 Hidden Valley 1 1 1 1 Bonikro 1 1 1 1 Exploration 0 0 0 0 Namosi 0 0 0 0 Wafi-Golpu 1 1 1 1 Corporate Offices – – – – Percentage of operations (%) 44 44 44 44

MM9 Total number and percentage of operations where resettlements took place Company (#) 0 0 0 0 Percentage of operations (%) 0 0 0 0

* ‘NA’ is ‘not available’. 64

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

SOCIAL continued FY2016 FY2015 FY2014 FY2013 HUMAN RIGHTS

HR2 Employees receiving training in human rights policies and procedures (%) Company 76.2 29.9 30.6 22.0 Lihir 91.6 68.3 NA* 22.0 Telfer 95.0 59.1 54.5 40.0 Cadia 94.7 14.3 100.0 100.0 Gosowong 98.7 21.6 1.0 1.0 Hidden Valley NA* NA* NA* 0.0 Bonikro 95.6 0.0 4.3 4.0 Exploration NA* NA* NA* NA* Namosi NA* NA* NA* NA* Wafi-Golpu NA* NA* NA* NA* Corporate Offices 92.4 NA* 3.8 3.0 Total number of hours of employee training provided concerning human rights policies or procedures (#) Company 5,151 4,222 2,686 6,857 Lihir 2,034 3,699 2,000 4,509 Telfer 403 164 335 60 Cadia 696 75 330 151 Gosowong 1,187 268 0 2,088 Hidden Valley NA* NA* NA* NA* Bonikro 503 0 0 46 Exploration NA* NA* NA* NA* Namosi NA* NA* NA* NA* Wafi-Golpu NA* NA* NA* NA* Corporate Offices 328 17 21 4

HR5 Number of operations at significant risk for incidents of child labour (#) Company 0 0 0 0

HR6 Number of operations identified as having significant risk for incidents of forced or compulsory labour (#) Company 0 0 0 0

HR7 Security personnel directly employed who are trained in human rights policies or procedures (%) Company 99 17 31 34 Lihir 100 68 26 100 Telfer 100 40 55 100 Cadia 100 0 100 100 Gosowong 100 6 1 0 Hidden Valley 96 (h) NA* 0 0 Bonikro 100 0 4 100 Exploration 0 (i) 0 0 0 Namosi 0 0 0 0 Wafi-Golpu 100 (h) NA* 0 0 Corporate Offices 100 0 4 0

(h) Joint venture employees. (i) Exploration included in Gosowong and Bonikro. * ‘NA’ is ‘not available’. NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 65

FY2016 FY2015 FY2014 FY2013 HUMAN RIGHTS continued

HR7 continued Total number of third party organisations’ security personnel trained in Newcrest’s human rights policies and procedures (#) Company 402 107 57 NA* Lihir 104 0 NA* NA* Telfer 6 0 2 NA* Cadia 0 1 8 NA* Gosowong 126 0 0 NA* Hidden Valley 22 (j) NA* NA* NA* Bonikro 137 106 47 NA* Exploration 0 NA* NA* NA* Namosi 0 NA* NA* NA* Wafi-Golpu 7 (k) NA* NA* NA* Corporate Offices 0 0 NA* NA*

HR8 Total number of incidents of Indigenous rights (#) Company 0 1 0 0

LABOUR PRACTICES AND DECENT WORK

LA1 Total employees (#) Company 6,731 6,907 5,602 8,184 Lihir 2,197 1,979 1,942 2,327 Telfer 432 528 549 754 Cadia 735 810 865 916 Gosowong 1,141 1,176 1,208 1,351 Hidden Valley 1,148 1,358 NA* 1,670 Bonikro 489 517 532 646 Exploration 124 132 150 NA* Namosi 14 14 16 47 Wafi-Golpu 131 108 NA* NA* Corporate Offices 320 285 340 473 Total contractors (#) Company 5,413 6,456 4,990 9,261 Lihir 1,858 2,138 2,205 2,762 Telfer 769 746 575 922 Cadia 519 802 934 1,130 Gosowong 480 930 813 1,524 Hidden Valley 857 881 NA* 2,196 Bonikro 630 504 265 497 Exploration 186 0 124 NA* Namosi 0 6 0 46 Wafi-Golpu 50 192 NA* NA* Corporate Offices 64 132 74 184

(j) Exploration included in Gosowong and Bonikro. (k) Joint ventures. * ‘NA’ is ‘not available’. 66

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

SOCIAL continued FY2016 FY2015 FY2014 FY2013 LABOUR PRACTICES AND DECENT WORK continued

LA6 Lost Time Injury Frequency Rate (LTIFR) Company 0.7 0.4 0.6 0.4 Lihir 0.2 0.1 0.2 0.1 Telfer 0.6 1.3 4.0 0.8 Cadia 2.7 1.3 0.6 0.7 Gosowong 0.6 0.0 0.0 1.0 Hidden Valley 1.3 0.3 0.3 0.1 Bonikro 0.3 0.0 1.8 0.8 Exploration 0.0 3.4 0.0 0.0 Namosi 0.0 0.0 0.0 0.2 Wafi-Golpu 0.0 0.0 0.0 0.0 Corporate Offices 1.3 0.0 1.0 0.0 Total Recordable Injury Frequency Rate (TRIFR) Company 3.7 3.6 3.1 3.6 Lihir 0.6 1.1 1.0 1.3 Telfer 10.9 10.7 8.6 7.1 Cadia 10.6 8.1 6.3 7.8 Gosowong 4.3 4.4 2.7 4.7 Hidden Valley 2.7 2.1 2.2 1.6 Bonikro 0.9 1.2 3.5 3.9 Exploration 10.7 10.2 0.0 2.6 Namosi 0.0 0.0 7.7 5.0 Wafi-Golpu 0.0 0.0 1.0 0.0 Corporate Offices 2.6 0.0 1.9 3.2

Employees Contractors Lost Time Injury Frequency Rate (LTIFR) (by employment type) FY2016 Company 0.5 0.6 Lihir 0.2 0.2 Telfer 2.0 0.0 Cadia 2.1 3.2 Gosowong 0.8 0.0 Hidden Valley 0.0 4.0 Bonikro 0.0 0.5 Exploration 0.0 0.0 Namosi 0.0 0.0 Wafi-Golpu 0.0 0.0 Corporate Offices 0.0 6.8 Total Recordable Injury Frequency Rate (TRIFR) (by employment type) FY2016 Company 2.6 4.0 Lihir 0.9 0.3 Telfer 8.9 11.7 Cadia 7.7 12.7 Gosowong 4.6 3.5 Hidden Valley 0.6 7.3 Bonikro 0.8 1.1 Exploration 29.5 0.0 Namosi 0.0 0.0 Wafi-Golpu 0.0 0.0 Corporate Offices 0.0 13.5 NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 67

Company Lihir Telfer Cadia Gosowong Hidden Valley Bonikro Namosi Wafi-Golpu Corporate Exploration TRAINING AND EDUCATION

LA9 Total average training hours per employee by gender and by employee category (#) FY2016 (l) Senior Executive Male employees 15.3 –––– ––– – 15.3 – Female employees 24.5 –––– ––– – 24.5 – Senior Management Male employees 6.1 11.5 45.0 10.5 3.7 0.0 0.0 0.0 0.0 6.5 0.0 Female employees 6.0 –––– ––– – 6.0 – Manager Male employees 8.6 1.6 40.8 11.9 15.3 0.0 0.5 0.0 0.0 6.3 0.0 Female employees 5.7 0.0 – 16.0 0.0 – 0.0 0.0 0.0 5.5 0.0 Senior Professional/Supervisor Male employees 35.7 21.0 46.8 68.0 43.1 55.1 39.5 0.0 0.0 4.8 2.5 Female employees 15.9 16.8 44.3 14.5 10.6 32.7 – 0.0 0.0 3.7 4.0 Technical/Professional/Clerical Role Male employees 74.9 33.2 46.6 310.3 59.0 81.5 7.3 0.0 0.1 6.0 1.0 Female employees 31.9 16.7 44.3 64.8 14.1 70.9 22.5 0.0 0.4 3.3 0.0 Total average training 59.6 28.0 46.3 232.2 51.9 72.4 9.4 0.0 0.1 5.3 1.3 hours per employee

LA11 Percentage of employees receiving regular performance and career development reviews (%) FY2016 Employees 93.2 99.0 93.5 99.0 75.0 NA* 98.0 NA* NA* 97.2 NA*

Number (#) Percentage (%) LA12 Composition of governance bodies as at 30 June 2016, and breakdown of employees per employee category according to gender and age group Board of Directors: Male 8 80.0 Female 2 20.0 <30 years of age 0 0.0 30–49 years of age 1 10.0 50+ years of age 9 90.0 Audit & Risk Committee: Male 2 66.7 Female 1 33.3 <30 years of age 0 0.0 30–49 years of age 0 0.0 50+ years of age 3 100.0 Human Resources & Remuneration Committee: Male 2 50.0 Female 2 50.0 <30 years of age 0 0.0 30–49 years of age 0 0.0 50+ years of age 4 100.0 Safety & Sustainability Committee: Male 3 60.0 Female 2 40.0 <30 years of age 0 0.0 30–49 years of age 0 0.0 50+ years of age 5 100.0 Nominations Committee: Male 3 100.0 Female 0 0.0 <30 years of age 0 0.0 30–49 years of age 0 0.0 50+ years of age 3 100.0

(l) Cadia training hours include formal on-the-job training for technical operators. The data has not been calculated for other operations. * ‘NA’ is ‘not available’. 68

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

SOCIAL continued Company Lihir Telfer Cadia Gosowong Hidden Valley Bonikro Exploration Namosi Wafi-Golpu Corporate Offices LABOUR PRACTICES AND DECENT WORK continued

LA12 (INCLUDES G4-10) Employment ratio by gender and level (%) FY2016 Senior Executive Total (#) 8 0 0 0 0 0 0 0 0 0 8 Male employees (%) 75.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 75.0 Female employees (%) 25.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 25.0 <30 years of age (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 30–50 years of age (%) 37.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 37.5 50+ years of age (%) 62.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 62.5 Senior Management Total (#) 45 2 1 2 6 1 1 2 1 4 25 Male employees (%) 97.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 96.0 Female employees (%) 2.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.0 <30 years of age (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 30-50 years of age (%) 42.2 0.0 0.0 50.0 50.0 0.0 0.0 0.0 0.0 25.0 56.0 50+ years of age (%) 57.8 100.0 100.0 50.0 50.0 100.0 100.0 100.0 100.0 75.0 44.0 Manager Total (#) 180 27 12 14 21 9 5 11 2 9 70 Male employees (%) 81.1 92.6 100.0 78.6 81.0 100.0 80.0 81.8 50.0 88.9 71.4 Female employees (%) 18.9 7.4 0.0 21.4 19.0 0.0 20.0 18.2 50.0 11.1 28.6 <30 years of age (%) 1.1 7.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 30-50 years of age (%) 73.3 85.2 75.0 57.1 85.7 77.8 100.0 54.5 50.0 44.4 72.9 50+ years of age (%) 25.6 7.4 25.0 42.9 14.3 22.2 0.0 45.5 50.0 55.6 27.1 Senior Professional/Supervisor Total (#) 1,502 574 94 145 211 296 11 23 8 38 102 Male employees (%) 90.3 93.0 95.7 92.4 92.4 89.9 100.0 82.6 75.0 86.8 66.7 Female employees (%) 9.7 7.0 4.3 7.6 7.6 10.1 0.0 17.4 25.0 13.2 33.3 <30 years of age (%) 8.5 12.2 3.2 6.2 2.4 9.5 0.0 4.3 12.5 5.3 8.8 30-50 years of age (%) 71.3 66.9 68.1 75.2 82.0 71.3 90.9 87.0 37.5 73.7 67.6 50+ years of age (%) 20.2 20.9 28.7 18.6 15.6 19.3 9.1 8.7 50.0 21.1 23.5 Technical/Professional/Clerical Role Total (#) 4,996 1,594 325 574 903 842 472 88 3 80 115 Male employees (%) 88.0 87.5 88.0 88.0 92.8 87.4 90.7 88.6 33.3 91.3 48.7 Female employees (%) 12.0 12.5 12.0 12.0 7.2 12.6 9.3 11.4 66.7 8.8 51.3 <30 years of age (%) 15.4 15.1 19.4 21.4 9.1 18.6 8.7 20.5 33.3 18.8 23.5 30-50 years of age (%) 70.4 65.0 58.2 64.5 84.3 69.6 80.9 72.7 66.7 70.0 60.9 50+ years of age (%) 14.3 19.9 22.5 14.1 6.6 11.8 10.4 6.8 0.0 11.3 15.7

G4-11 Percentage of total employees covered by collective bargaining agreements (%) FY2016 Employees covered 34.6 0.0 50.7 61.9 97.8 0.0 94.7 38.7 0.0 0.0 8.8

LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation (%) FY2016 Senior Executive 0 0 0 0 0 0 0 0 0 44 Senior Management 0 0 0 0 0 0 0 0 0 98 Manager 85 0 89 60 35 85 107 133 60 93 Senior Professional/Supervisor 73 95 92 69 81 0 118 75 63 89 Technical/Professional/Clerical Role 97 86 80 122 82 106 151 150 194 91 NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 69

Company Lihir Telfer Cadia Gosowong Hidden Valley Bonikro Exploration Namosi Wafi-Golpu Corporate Offices LABOUR PRACTICES AND DECENT WORK continued

LA12 (INCLUDES G4-10) Employment ratio by gender and level (%) FY2016 Senior Executive Total (#) 8 0 0 0 0 0 0 0 0 0 8 Male employees (%) 75.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 75.0 Female employees (%) 25.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 25.0 <30 years of age (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 30–50 years of age (%) 37.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 37.5 50+ years of age (%) 62.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 62.5 Senior Management Total (#) 45 2 1 2 6 1 1 2 1 4 25 Male employees (%) 97.8 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0 96.0 Female employees (%) 2.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4.0 <30 years of age (%) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 30-50 years of age (%) 42.2 0.0 0.0 50.0 50.0 0.0 0.0 0.0 0.0 25.0 56.0 50+ years of age (%) 57.8 100.0 100.0 50.0 50.0 100.0 100.0 100.0 100.0 75.0 44.0 Manager Total (#) 180 27 12 14 21 9 5 11 2 9 70 Male employees (%) 81.1 92.6 100.0 78.6 81.0 100.0 80.0 81.8 50.0 88.9 71.4 Female employees (%) 18.9 7.4 0.0 21.4 19.0 0.0 20.0 18.2 50.0 11.1 28.6 <30 years of age (%) 1.1 7.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 30-50 years of age (%) 73.3 85.2 75.0 57.1 85.7 77.8 100.0 54.5 50.0 44.4 72.9 50+ years of age (%) 25.6 7.4 25.0 42.9 14.3 22.2 0.0 45.5 50.0 55.6 27.1 Senior Professional/Supervisor Total (#) 1,502 574 94 145 211 296 11 23 8 38 102 Male employees (%) 90.3 93.0 95.7 92.4 92.4 89.9 100.0 82.6 75.0 86.8 66.7 Female employees (%) 9.7 7.0 4.3 7.6 7.6 10.1 0.0 17.4 25.0 13.2 33.3 <30 years of age (%) 8.5 12.2 3.2 6.2 2.4 9.5 0.0 4.3 12.5 5.3 8.8 30-50 years of age (%) 71.3 66.9 68.1 75.2 82.0 71.3 90.9 87.0 37.5 73.7 67.6 50+ years of age (%) 20.2 20.9 28.7 18.6 15.6 19.3 9.1 8.7 50.0 21.1 23.5 Technical/Professional/Clerical Role Total (#) 4,996 1,594 325 574 903 842 472 88 3 80 115 Male employees (%) 88.0 87.5 88.0 88.0 92.8 87.4 90.7 88.6 33.3 91.3 48.7 Female employees (%) 12.0 12.5 12.0 12.0 7.2 12.6 9.3 11.4 66.7 8.8 51.3 <30 years of age (%) 15.4 15.1 19.4 21.4 9.1 18.6 8.7 20.5 33.3 18.8 23.5 30-50 years of age (%) 70.4 65.0 58.2 64.5 84.3 69.6 80.9 72.7 66.7 70.0 60.9 50+ years of age (%) 14.3 19.9 22.5 14.1 6.6 11.8 10.4 6.8 0.0 11.3 15.7

G4-11 Percentage of total employees covered by collective bargaining agreements (%) FY2016 Employees covered 34.6 0.0 50.7 61.9 97.8 0.0 94.7 38.7 0.0 0.0 8.8

LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation (%) FY2016 Senior Executive 0 0 0 0 0 0 0 0 0 44 Senior Management 0 0 0 0 0 0 0 0 0 98 Manager 85 0 89 60 35 85 107 133 60 93 Senior Professional/Supervisor 73 95 92 69 81 0 118 75 63 89 Technical/Professional/Clerical Role 97 86 80 122 82 106 151 150 194 91 70

MESSAGE WHO ABOUT THE YEAR OUR ECONOMIC SOCIAL ENVIRONMENTAL DATA ASSURANCE FROM THE CEO WE ARE THIS REPORT IN REVIEW PEOPLE PERFORMANCE PERFORMANCE STEWARDSHIP TABLES STATEMENT

Assurance Statement

Ernst & Young Tel: +61 3 9288 8000 8 Exhibition Street Fax: +61 3 8650 7777 Melbourne VIC 3000 Australia ey.com/au GPO Box 67 Melbourne VIC 3001

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation NEWCREST MINING LIMITED SUSTAINABILITY REPORT 2016 71

Page 2

A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation 72

Land rehabilitation at Bonikro. Corporate Directory

INVESTOR INFORMATION STOCK EXCHANGE LISTINGS AMERICAN DEPOSITARY REGISTERED AND PRINCIPAL OFFICE AUSTRALIAN SECURITIES EXCHANGE RECEIPTS (ADRS) Newcrest Mining Limited (Ticker NCM) The Bank of New York Mellon Level 8 Shareholder Services 600 St Kilda Road PORT MORESBY STOCK EXCHANGE c/o Computershare Investor Services Melbourne, Victoria 3004 (Ticker NCM) PO Box 43078 Australia Providence, RI 02940-3078 USA T: +61 (0)3 9522 5333 NEW YORK ADRS T: +1-888-269-2377 F: +61 (0)3 9525 2996 (Ticker NCMGY) (toll free within the US) E: [email protected] International Callers: +1 201-680-6825 SHARE REGISTRY E: [email protected] www.newcrest.com.au Link Market Services Limited www.bnymellon.com/shareowner COMPANY SECRETARIES Tower 4 727 Collins Street Francesca Lee and Claire Hannon OTHER OFFICES Docklands, Victoria 3008 Newcrest Mining Limited Australia PERTH AND TELFER OFFICE Level 8 Locked Bag A14 234 Railway Parade 600 St Kilda Road Sydney South, New South Wales 1235 West Leederville, Western Australia 6007 Melbourne, Victoria 3004 Australia Australia Australia T: +61 (0)8 9270 7070 T: +61 1300 554 474 T: +61 (0)3 9522 5333 (toll free within Australia) F: +61 (0)3 9521 3564 PORT MORESBY OFFICE F: +61 (0)2 9287 0303 E: [email protected] +61 (0)2 9287 0309* Level 4 [email protected] *For faxing of Proxy Forms only. Port Tower Building E: [email protected] Hunter Street INVESTOR RELATIONS Port Moresby, Papua New Guinea www.linkmarketservices.com.au Chris Maitland T: + 675 321 7711 Head of Investor Relations F: + 675 321 4705 Newcrest Mining Limited PNG REGISTRIES LIMITED Level 8 Level 2, AON Haus 600 St Kilda Road MacGregor Street Melbourne, Victoria 3004 Port Moresby, NCD Australia Papua New Guinea PO Box 1265 T: +61 (0)3 9522 5717 Port Moresby, NCD E: [email protected] Papua New Guinea T: +675 321 6377/ 78 F: +675 321 6379 E: [email protected]

Visit our website at www.newcrest.com.au to view our: key dates; current share price; market releases; annual, quarterly and financial reports; operations, project and exploration information; corporate, shareholder, employment and sustainability information.