LIHIR PAPUA NEW GUINEA Mission To deliver superior returns Vision To be the Miner of choiceTM. from finding, developing and operating We will lead the way in safe, responsible, gold/copper mines. efficient and profitable mining. Location History In August 2010, Newcrest acquired the Lihir operations as The Lihir gold operation is located on Gold mineralisation was a result of the merger between discovered at Lihir in 1982, Newcrest and LGL. Aniolam Island, the largest island in following which a major the Lihir Island group. Aniolam Island exploration campaign and Ownership feasibility study was conducted is approximately 900 kilometres north- by a joint venture between Lihir is owned and operated by LGL, a 100% owned subsidiary east of Port Moresby in the New Ireland Kennecott Explorations Australia and Niugini Mining Limited company of Newcrest. Province of Papua New Guinea (PNG). between 1983 and 1992. Gold deposit The Lihir Special Mining Lease The gold deposit at Lihir is located (SML) was granted in 1995 within the Luise Caldera, an extinct following comprehensive volcanic crater that is geothermally environmental and other studies. active. It is one of the largest Kavieng Under the terms of the original known gold deposits in the world. The principal component deposits project approvals, the Lihir within the Lihir open pit are called project (including the SML) Lienetz, Minifie, Coastal and Kapit. was transferred to a new PNG company - Lihir Gold Limited Exploration in the Luise Caldera has (LGL). Rio Tinto established identified several additional mineral deposits, which are collectively Lihir Management Company to called the Ladolam Deposit. The develop and operate the mine on limits of the mineralisation have not behalf of LGL. In 1997 the first been completely defined and are gold was poured at Lihir. open at depth, along strike, and to In 2005, Rio Tinto divested its the east (currently limited by the Pacific Ocean). interests in Lihir, allowing the Lihir operations to become owned and For the year ended June 2015, operated by LGL. 688,714 ounces of gold were produced. Lihir October 2015 www.newcrest.com.au Local hiring, training and development Lihir’s recruitment, training and localisation strategy aims to build the capacity of Newcrest’s Lihirian and PNG workforce. Aligned with Newcrest’s local hiring policy, employment preference is given first to Lihirians, then to individuals from New Ireland Province, followed by individuals from other areas of PNG. Economic contribution Lihir creates economic value for PNG and local communities in a number of ways, including employment, purchasing goods and services from local suppliers and contractors, payment of government royalties and taxes, payment of landowner royalties and land use compensation, Environment Waste rock from the mine is either used investments in public infrastructure and for construction purposes or transported services and a range of indirect economic Newcrest understands how integral the in barges for off-shore submarine disposal. benefits. environment is to its business and has Submarine disposal is carefully planned The Lihirian community also benefits from strong systems in place to minimise and and controlled to achieve a continuous manage potential impacts. the social and economic development slope along the steeply dipping sea floor programs delivered under the Lihir The Lihir gold operation is located and to prevent uncontrolled slumping Integrated Benefits Package. in an inactive volcanic area, which triggering a wave effect. retains geothermal energy. Since 2003, During the 2013-14 financial year, the geothermal energy has been used at Mining and ore processing Lihir operation provided A$67.7 million in Lihir to provide some of the operation’s community expenditure and Most of the ore is refractory and is treated power needs and reduce greenhouse gas A$35.9 million in total payments to the using pressure oxidation before the gold is emissions. local, provincial and national government*. recovered by a conventional leach process. Lihir’s geothermal power plant was At Lihir, Newcrest supports PNG-based Newcrest has completed a major the first project in PNG to be registered suppliers and businesses where possible. expansion of the Lihir process plant which for carbon credit trading under the Newcrest also contributes to the local included the installation of a new crushing Kyoto Protocol. economy in accordance with agreements facility and upgrades to the ore processing with the government and landowners Lihir maintains an ISO 14001 certified plant. The plant expansion will increase by providing public infrastructure and Environmental Management System flexibility of the operation, improve the services, including access to health (EMS), which assists in the planning reliability of single pieces of equipment and services, the provision of electrical power and implementation of environmental lower fixed costs per tonne. and water to local villages. management measures. Safety and health Lihir funds provincial public infrastructure Lihir uses Deep Sea Tailings Placement through the National Government’s (DSTP). In view of the heavy rainfall typically Newcrest is committed to employee and Tax Credit Scheme (TCS). TCS projects experienced on Niolam Island, the lack of community health and safety and Lihir are agreed in consultation with the suitable area for a tailings storage facility and undertakes a range of education, training, New Ireland Provincial Government the high seismicity of the region, DSTP was counselling, prevention, and risk-control and are aimed at addressing provincial the preferred tailings placement method for programs to assist employees, their development priorities. Lihir. Plant tailings are stablised and diluted families, and community members. before being discharged from a subsea pipeline onto the deep seabed, below the Lihir has improved health access, including biologically active upper layers of the ocean. through the operation of a medical centre, Baseline studies were undertaken prior to the which delivers health benefits for the Lihir approval by PNG environmental authorities community. and commencement of the DSTP. Regular * Newcrest Sustainability Report 2014 monitoring is undertaken to verify the operational performance of the system. CONTACT Newcrest Corporate Affairs www.newcrest.com.au T: + 61 3 9522 5593 E: [email protected].