McARTHURMEMO RIVER MINING RANDUSEPTEMBERM 2007 – EDITION 6

(L-R) Minister for Regional Development, the Hon Kon Vatskalis, with Mabunji Aboriginal Resource Association Chairperson, Frazer Baker, and MRM General Manager, Brian Hearne, celebrate the formation of the McArthur River Mine Community Benefits Trust in Borroloola

$32 Million Trust in “The extended mine life, made possible Mr Billy Coolibah, a Traditional Owner of the by the open pit development, provides the Gurdanji people on whose land the mine is Borroloola opportunity for MRM to expand its support for located, said: “It’s a very good thing for jobs the regional community,” Mr Hearne said. and the people of Borroloola. The mine does MRM will provide in the order of $32 million a great deal for our community. We look to deliver economic and social benefits to Minister for Regional Development, Kon forward to the good things this money the Borroloola region via a Trust established Vatskalis said the agreement acknowledges will provide.” through agreements signed on 4 July with the the shared regional objectives of the Northern Territory Government. community, the Northern Territory Fellow Gurdanji Traditional Owner, Mr Ronny Government and MRM in developing the Ragget said: “The Community Benefits Trust is MRM GM, Brian Hearne and Northern Gulf region. a good thing. We support the mine. They help Territory Minister for Regional Development, our families and provide more opportunity for the Hon Kon Vatskalis, signed an agreement “This is the first ever agreement of its kind our young fellas and the community.” for the establishment of a Trust which will that’s been signed in the Territory, and I tell fund local initiatives in the areas of enterprise you, it’s not going to be the last,” These comments were endorsed by Ms Judy and job creation, environment, arts, culture, Mr Vatskalis said. Cotton, Principal of the Borroloola Community health, education, social and Education Centre who said: “The money “The significance of this type of agreement community development. provided by MRM will be money well spent is hugely important. It is a benchmark for in building the educational capacity of the Mr Hearne said the documents formalised the what might be possible with other significant community and will enhance the quality of life mine’s commitment to the delivery of long- economic projects that emerge across of people in Borroloola.” term community benefits. This includes MRM’s the Territory.” commitment to achieve 20 percent indigenous Mr Hearne said community involvement was workforce participation at the mine and www.mcarthurriver.com.au important to the success of the Trust and increased local purchasing. engagement with community on the structure, [email protected] focus and priorities was a critical first step in 1800 211 573 its implementation. McARTHUR RIVER MINING SEPTEMBER 2007 – EDITION 6 2 2

McARTHUR RIVER MINING AUGUST 2007 – EDITION 6

This Committee makes recommendations How does the to a Trustee Board which comprises nine Community Directors whose roles are to manage the Trustee company’s business and affairs, Benefits authorise payments and appoint supporting Trust work? officers. The Trustee Board will comprise nine The MRM Community Benefits Trust relies Directors: heavily on community involvement which will drive the Trust and is essential to • 2 appointed by NT Government A Message from its success. (one independent) Richard Galton and The community will be involved through Shirley McPherson the GM submitting program ideas and advising on • 2 appointed by the mine (one priorities to an Allocations and Investments This edition of MemoRanduM provides independent) Sue Sara and Col Fuller evidence of how MRM is contributing to Advisory Committee. the community. • 1 elected by Community Members These ideas and priorities can also be The finalisation of agreements for the MRM submitted via recognised Community • 4 representing Indigenous Members Community Benefits Trust, our sponsorship Members (organisations), Indigenous (1 from each language group in the of the Darwin Symphony Orchestra’s first Members and Advisory Committees (such as Borroloola region), Ronny Raggett regional tour to Borroloola, our annual sponsorship of the Borroloola Show and the MAWA Committee). (Gurdanji), Samuel Evans (Mara), Rodeo that just get better every year and Adrianne Friday (Yanyuwa) and Tony Jack Community organisations will be invited significantly, our support for new Airnorth (Garrawa). jet services to McArthur River, are all by the Directors of the Board to become indicative of the benefits that can come from Community Members of the Trust and The Directors will develop and approve the the mining operation. participate as representatives of their Annual Plan for the Trust. The Annual Plan community. This is one of the ways for local will map out the Trust’s activities for the year The Trust is a particularly important residents to become involved in the Trust. including initiatives to increase the number development for us as it puts on paper, our of Indigenous and local people employed at commitment to the future of our region. In addition, community organisations will the mine. We have always accepted our responsibility have the opportunity to nominate and elect to support the community surrounding our one of their representatives to the Trustee For more information on the Trust, operations and this is shown through our Board. download a copy of the fact sheet on the history of sponsorships, donations and in- MRM website www.mcarthurriver.com.au The Board will then appoint Community kind support provided. or contact the MRM Community Relations Members and indigenous members to Officer, Jeremy Hastings at the mine’s The open pit development has been a the Allocations and Investment Advisory catalyst for increasing our levels of support. Borroloola office on 08 8975 8281 for a Committee. copy of a storybook explaining the Trust Importantly, it has also contributed (see example below). significantly, as we had anticipated, to the commencement of royalty payments from MRM to the NT Government.

There are many ways that MRM contributes to the region and the Territory. Some, like royalties, are obligations. Some like the improved air services, are positive by- products of our operation.

However, all come from a recognition that we have both a responsibility and an opportunity, to ensure the community benefits both socially and economically from the mine’s presence. These benefits are something we are determined to deliver.

Brian Hearne General Manager McARTHUR RIVER MINING SEPTEMBER 2007 – EDITION 6 3

McARTHUR RIVER MINING AUGUST 2007 – EDITION 6

“The orchestra’s regional concert series MRM has been a major sponsor of the Borroloola’s has not only succeeded in bringing a show for the past 11 years. This year the bumper weekend new appreciation of music to remote mine provided $5,000 to support the communities but has also generated great coordination and promotion of the show as The Borroloola community enjoyed a huge economic benefits,” Mr Hearne said. well as sponsorship for the Borroloola Art weekend on 17-19 August, with three Acquisition Award. major events sponsored by MRM. As in “The Borroloola Symphony Under the Stars past years, the Borroloola Gulf Show and gave community members a chance to enjoy The Borroloola Rodeo, Campdraft the Borroloola Rodeo, Campdraft and the internationally renowned orchestra and Gymkhana Rodeo were held. This year, MRM invested which otherwise they would have to travel There were many thrills and spills at the $70,000 in sponsorship for the weekend’s to Darwin to see.” 2007 Borroloola Rodeo, Campdraft and events that also included a free outdoor Gymkhana with more than 53 events on concert featuring the Darwin Symphony “We are proud we could offer this year. Riders from as young as Orchestra (DSO). six had ample opportunity to make an bring this experience to the impression with their riding and Darwin Symphony Orchestra Borroloola region.” droving skills. outdoor concert The DSO extended its regional concert series The Borroloola Gulf Show Celebrating 40 years of the Rodeo this year, this year with a free event in Borroloola This year was the 22nd anniversary of the the event continues to be a drawcard to sponsored by MRM and Airnorth. Borroloola Gulf Show. The event displayed the region with competitors and spectators the unique talents of local residents in art travelling from across the country to The orchestra performed the ‘Symphony and craft, cooking and horticulture. be involved. Under the Stars’, a two hour concert at the Borroloola School Oval on Saturday 18 People of all ages were encouraged to enter MRM is proud to continue its long-term August, which was followed by a spectacular a variety of events, which included the support of the annual event. This year the fireworks display. inaugural Borroloola Art Acquisition Award mine contributed $5,000 to sponsor the designed to showcase artwork produced by promotion and prizes for the Rodeo. Mr Hearne said it was hoped the symphonic local Indigenous artists. event would become an annual feature of the Show adding to the appeal for tourism to the area. McARTHUR RIVER MINING SEPTEMBER 2007 – EDITION 6 4

McArthur River rechannelling MRM concentrator Open pit Stage 1 clearing of the McArthur River expansion development rechannelling is now complete with approximately 1.7 million cubic metres of Work on the concentrator expansion at update material moved so far. MRM is underway. Once completed, MRM The open pit development at McArthur To date, 1.2km of the 5.5km McArthur will be the first mine using ISAMILL grinding River is proceeding on schedule. Highlights River rechannelling work is complete and on technology in a primary grinding application include the Barney Creek rechannelling schedule to be finished by June 2008. on a continuous basis. which will be completed in the third quarter Chute construction, channelling water from The expansion project will increase the of 2007, the McArthur River rechannelling the tributaries, commenced in July to ensure concentrator’s throughput rates from which will be 90% complete by December water discharged from these tributaries 1.8 mtpa to 2.5 mtpa during 2008. 2007 and finished in the second quarter of 2008, as well as the Bund Wall which will be follows a controlled route and does not The project consists of a number of major completed after the wet season in 2008. erode new channels. engineering installations which include two Main Levee Wall M10000 ISAMILLs, a new 36 metre tailings The civil works team continues to make Work on the northern and eastern stages of thickener and a new tailings disposal line as good progress on the various projects the main levee wall continues with 4km of well as upgraded pumps. associated with the open pit development and have achieved significant milestones the 7km wall completed. since May. ISAMILL grinding technology was developed Rock armouring is underway to provide in the 1990s and its application at MRM in Barney Creek rechannelling erosion protection of the clay levee core. 1995 was the first of its kind, representing a Bulk excavation for the Barney Creek new approach to grinding technology in the Southern Ana-Branch temporary rechannelling is 90% complete with minerals processing industry. flood levee approximately 80,000 cubic metres of The southern Ana-Branch temporary flood drilling and blasting remaining. Since then Xstrata Process Technologies has levee is an interim levee for Stage D of the continued to develop the ISAMILL units and Rock rehabilitation works are 80% complete open pit. Clearing for the levee footprint, now produces the M10000 ISAMILL which and re-planting along the banks of Barney haul roads and borrow pits is now complete are three times the size of the earlier units. Creek will commence in September. with approximately 180,000 cubic metres moved to date. The primary advantage of ISAMILLs over Overburden Emplacement Facility conventional grinding technologies is their Construction on the Barney Creek bridge Airport runway upgrade power efficiency and the ultrafine grinding started in June with the precast concrete Stage 1 of the runway upgrade opened in they can achieve. decking units transported to the site. The mid July. bridge piles are now 90% complete. MRM currently grinds concentrate to below Work on Stage 2 of the upgrade is 7 micron to allow the removal of impurities Preparation work for Bridge 2 has scheduled for completion in the first week from the ore. commenced and is ready for construction. in September.

This was critical to the development of the McArthur River ore deposit and ensured the concentrate was suitable for sale to the Imperial Smelting Process operations.

Laboratory and pilot plant testwork was conducted by MRM in partnership with Xstrata Process Technologies and has advanced the expansion project to a high level of confidence.

Full scale test work has been underway over the last two months using the M3000 ISAMILLs and has involved the input of all concentrator employees.

This work has been accomplished while still producing record throughput rates and maintaining the plant to an The fleet and team in the McArthur River Channel excellent standard. McARTHUR RIVER MINING SEPTEMBER 2007 – EDITION 6 5

Supplier update: CDE Capital

Who is CDE Capital? CDE Capital is a respected civil and mining contractor with more than 30 years experience in delivering major construction and infrastructure projects throughout the Northern Territory.

Around 85% of the CDE Capital workforce is Aboriginal. The company prides itself in its ability to provide meaningful employment and training opportunities for those in the local community wherever possible – some Traditional Owners from the local Gudanji people Ronny Raggett, Bruce Joy and Billy Coolibah watching projects recruit almost 50% of the workforce the new jet arrive. from the local community. Mr Hearne said the new jet has given New MRM another way to improve services in What does the company do at MRM? CDE Capital has a three year contract with Airnorth Jet the Borroloola region by keeping families MRM to provide hire equipment including connected, supporting the tourism sector a D10 Bulldozer, 325 Excavator, 740 Dump Airnorth unveiled its new $34 million jet and helping business and economies grow. Truck and 16H Grader for the civil work on at an event in Darwin on Friday 27 July. The inaugural flight to Borroloola took place site. The work will transfer over to mining The aircraft was purchased in part to meet after the completion of the civil work the increase in demand for the Darwin to on 18 August to fly the Darwin Symphony project. In addition, CDE Capital coordinates McArthur River Mining route. Orchestra to perform in an outdoor concert the required operators and supervisors to at the Borroloola Show. operate the machinery over The purchase of the Embraer E170 is the double shifts. biggest single investment in the Territory’s The first public flight is scheduled for early aviation history and was made possible September. What else does the company do? following the approval of the mine’s $110 The company also provides equipment for million open pit development. infrastructure projects including road and MRM ore airstrip upgrades as well as for other NT Airnorth co-owner and Chief Executive, mining operations. Mr Michael Bridge said the MRM charter production CDE achieved National Accreditation was crucial to the company’s decision to inceasing in Workforce Assessing (Building and purchase the plane. Construction) for its employment and Ore production has increased by 16% from training programs and over the past 20 years “It was clear that the Embraer E170 was the 706,600 tonnes to 817,420 tonnes at MRM the company has established the careers of ideal aircraft for the MRM operation, but during the first half of 2007. The increase is more than 50 trainees. also fitted well with our plans to upgrade a a result of the open pit mining approval in number of existing services across the Top Contact details: October 2006. CDE Capital End as well as enabling us to expand into Phone: 08 8988 0777 new markets,” he said. Stage D mining commenced in June and development is progressing well with Mr Hearne said MRM wouldn’t have an approximately 500,000bcm of waste operation without the tremendous support removed so far. The first transitional ore was of Airnorth. mined from this area at the end of July and delivered to the crusher. “Our workforce has been totally dependent on Airnorth’s regular services after awarding Stage E which is the next stage of the fly-in, fly-out contract in July 2005,” development along the Western pit wall is he said. due to commence in October 2007.

There were no regular air services to Previous work on the open pit was Borroloola before the mine was developed. undertaken by JMS mining contractors MRM has supported the improved Airnorth and the transition from JMS contractors services by extending the airstrip by 1.4km to an MRM owner-operated project was and upgrading airport facilities at a cost of completed in late June. Sid Rusca, CDE Capital Company Mentor $7 million. McARTHUR RIVER MINING SEPTEMBER 2007 – EDITION 6 6

Site visits Introducing Environment The Department of Primary Industry, Fisheries update and Mines, Environmental Monitoring Unit Gary Taylor visited the site in May to conduct surface and groundwater monitoring as part of its Water annual program. The dry season is well on the way and water levels have been progressively dropping. A Worksafe Inspection was undertaken in Routine sampling on groundwater and Bing July by Kee Hah, Senior Mining Engineer Bong marine sites continues along with with Northern Territory Worksafe, water monitoring upstream and downstream Department of Education Employment along the McArthur River. and Training, which covered all main areas around the mine site and The impact assessment of metal levels at rechannelling work. Bing Bong loading facility on listed migratory birds, managed by Charles Darwin University HSE Innovation Award Gary Taylor, MRM’s new Safety, Health and continues at sample sites east and west of An incentive of $200 prize money for Environment Manager the facility. The report highlighted that all workplace Health, Safety and Environment levels were below ANZECC guidelines. innovations is being implemented at MRM. On 11 June 2007 MRM welcomed Gary Stage two of this monitoring program was Nominations for the award are open and Taylor who took up the position of Safety, carried out in June and involved identifying judging will occur every second month. Health and Environment Manager. the abundance of migratory birds within the Gary’s appointment has enabled MRM to region of the Bing Bong loading facility. continue moving forward with the mine development while addressing the new This monitoring program meets the challenges it represents in terms of striving conditions requested by the Federal Minister to continually achieve the highest standards for Environment and Heritage as part of the of environmental, occupational health and Minister’s consent granted in October 2006 safety management programs. Fish monitoring Gary has a Bachelor of Science degree, a In June, Dr Dean Thornburn from Indo Graduate Diploma in Tropical Environmental Pacific Environmental Pty Ltd conducted Management, and additional qualifications the third fish survey of the McArthur River in Parks and Wildlife Management, Training as part of the early dry season monitoring and Assessment, Applied Science and program. This program covers a number Government Investigations. of sites including Eight Mile Waterhole, Borroloola Crossing, Bessie Springs and He is also a certified Lead Environmental upstream of King Ash Bay. Auditor, an Accredited Lead OHS Auditor and has qualifications in risk management Environmental rehabilitation training and landscape function analysis. Recent environmental rehabilitation work He has been involved in the exploration and has involved the preparation of Barringtonia mining industry for more than 10 years, (freshwater mangrove) cuttings and the primarily in environmental and occupational collection of several native grass species for health and safety roles. He joins MRM revegetation purposes. from his most recent role as a Mining Team The dry season provides the Environment Leader within the Compliance Division of Team with the opportunity to work on the Northern Territory (NT) Department of fire management controls including the Primary Industry, Fisheries and Mines. maintenance of firebreaks around the mine He has gained his experience in both infrastructure and village facilities. While private industry and government, including undertaking this work, the team actively Vennita Davey (above) is a Borroloola resident Dampier Salt in Western Australia, Capricorn monitors the site for native trees and large and school student who took part in the Exploration and Mining Title Services and the woody material suitable for use as new MRM work experience program from 2 to NT Government. 13 July. Vennita spent the majority of the habitat structures in the rechannelling areas. two week work experience program with His extensive knowledge of our industry the environment section and is pictured here means he is ideally suited as we move assisting the MRM Environment Technicians forward with the open pit with environmental sampling mining development. McARTHUR RIVER MINING SEPTEMBER 2007 – EDITION 6 7

Staff movements Transfers ERT update • David Barnes has moved to the Training As at the end of July 2007, MRM had 173 Department in the new role of Mining Over the last few months the Emergency permanent employees and 717 contractors. Training Officer Response Team (ERT) has been busy with • Lenny Hilzinger is MRM’s new Training extensive fuel reduction burns around the New starters Coordinator in the Mining Department. mine site as part of the weed eradication MRM would like to welcome: Farewell program and bushfire threat management. Administration Department Farewell to Kerri Carpenter, Kristy Reid, Noel On the weekend of 24 and 25 August the • Peter Spry, Supply Officer Everon, Graham Luxton, Belinda Lake, Kelly team took part in the Northern Territory • Aaron Hocking, Inventory Controller Whitehurst and William Miller. Minerals Council Mine Rescue competition. • Peter Patsalou and Darren Bennier, Full coverage of the event will be detailed commenced as Purchasing Officers Special announcements in the next edition of MemoRanduM. • William Coolwell, Marilyn Drover, Get well to Brendon Douglas Edward Firkin, Michael Keighran and It’s a boy! Congratulations to Ed Carrigan The competition was a great opportunity Robert Keighran who have started their It’s a girl! Congratulations to Joshua Limbert. for team members to be challenged by the MST Traineeships in the Administration real pressures of a rescue in an excellent Department. Social Club learning environment and have their Environment skills reviewed. The team members were • Gary Taylor, Health, Safety and In May and June the Social Club held two selected from all departments on site. Environment Manager. great nights of sight seeing and socialising. The ERT also looks forward to training at Mining Around 60 people experienced the sights of the new fire fighting facility currently under • Joe Clear who joined the Surveyor team Darwin at sunset and a variety of construction at the fire ground which will in the Mining Department night spots. use gas for simulated fires and present • Mining Operators: Peter Devery, Robert different scenarios for skill development. Hocking, Mark Hohnke, Brad Penna, The ERT would like to welcome new Steven Price, Gavin Ross, Clint Archer, members Chris Chung, Peter Spry, Kane Neil Ball, Peter Barling, Chris Martin, Hartell, Adam Clarke and Ed Doerr. The Nolan Pryce, Andrew Lansen, Ashley team farewells Sally Alcock and Peter Crosser, Allan Laidlow, Adam Roy and Dimmock and would like to thank them Les Williamson for their contributions to the team. • Graham Howard and Billy Anderson who have joined MRM as Trainee Operators in the Mining Department. Metallurgy Department • Eury-Jane Butler who commenced her Electrician Apprenticeship • Nicholas Selwyn who commenced his First Year Apprentice Fitter.

Promotions Congratulations to the following staff who have recently been promoted: • Huw Werrett was promoted to Supply and Contracts Superintendent on 1 June • Matthew Guinane was promoted to Surveyor in the Mining Department on 1 June • Patrick Hurst commenced his second year as Apprentice Electrician on 1 May • Nathan Roach entered his second year as Apprentice Boilermaker on 17 May. (From top) Adam Clark, Rob James, Judy Ratajec, The ERT in action, rehearsing car rescues and Carmel Johnston and Tony Ratajec; Bob Fabian, performing essential maintenance in Adrienne James and Judy Fabian; Daniel and the workshop. Nadine Roach. McARTHUR RIVER MINING SEPTEMBER 2007 – EDITION 6 8

Mr Hearne said MRM would work with Community update Initiative creates Mission Australia, the Job Network provider in Borroloola, to identify 40 local jobseekers Community Reference Group 40 jobs who will undergo on-the-job training with On Tuesday 24 July MRM hosted a the offer of ongoing employment following Community Reference Group (CRG) MRM will surpass a commitment to double the training period. meeting to discuss current community its traineeships, through an innovative indigenous employment partnership with projects and upcoming events. The CRG “The initiative will be delivered in four Mission Australia and Federal also toured the mine to view progress on groups of 10 participants appointed Government funding. the open pit development. between August 2007 and May 2008. The MRM committed in its Public Environment rolling starts will ensure dedicated training Weed clearing Report for the $110 million open pit and mentoring can be achieved,” MRM is undertaking additional work development to increase traineeship Mr Hearne said. around the mine site to manage and numbers from 10 to 20 per annum. Under a remove weeds. The ongoing work new indigenous employment initiative MRM “Mentoring and personal support will be associated with weed management will appoint 40 trainees from the Borroloola a key part of the initiative to ensure each presents an opportunity for community region within one year. participant is reaching their full potential.” members to get involved. MRM will provide the necessary training and the The initiative which commenced in August is Mr Hearne said the initiative demonstrated equipment to ensure the work is supported by more than $400,000 provided the mine’s long-term commitment to undertaken safely. by the Department of Employment and building a strong community. Workplace Relations Structured Training and Contact Community Relations Officer, Employment Project (STEP) program and Jeremy Hastings on 08 8975 8281 for more than $100,000 from MRM. more information.

Swimming pool Work on the swimming pool project continues, assisted by a full-time Project Manager appointed by MRM. The pool plans were presented at the July pool committee meeting and incorporated a 25m x 12m pool, wading pool, change rooms and kiosk.

Some minor changes will be made before the pool plans are presented again to the Pool Committee for final approval. The pool is expected to be completed by the end of 2007. The Borroloola Cyclones soccer team wearing new MRM sponsored jerseys with coach Glenn Thompson MRM Cyclones Soccer Team (far left) and MRM Community Relations Officer Jeremy Hastings (far right) As the proud sponsor of the Borroloola Cyclones Soccer Club, MRM recently MRM pays first exploration expenses and other deductions presented the team with new jerseys. approved by the NT Treasurer.

Four local children have been selected to royalties Mr Hearne said “We are very pleased that, play in the NT representative team. The as expected, the development of an open pit MRM announced on 16 July, that the mine children participated in a demonstration mining area is improving the profitability of had made its first royalty payment to the match at Darwin Football Stadium prior to MRM, allowing us to provide further benefits Northern Territory Government. MRM paid the Melbourne Victory vs Perth Glory game to the Territory through royalty payments. $13.06 million which represents 50% of the in the Hyundai A-League 2007 total royalty payment for calendar year 2007. Pre-Season Cup. “As one of the three largest mines in the Northern Territory, MRM plays a significant Royalty arrangements for the mining role in the region’s economic development, operation are dictated by the McArthur River through direct job creation, payment of Project Agreement Ratification Act 1993 as taxes, community investment and through well as the Mineral Royalty Act. our policy of prioritising local industry and businesses to supply our operation, The arrangements are calculated based on increasing local procurement by 14% in a formula which takes into consideration 2007 to date,” he said. revenue, operating costs, capital deductions,