Newmont Waihi Gold

20122012

2012

Newmont Waihi Gold General Induction 2

Who are we?

Newmont Mining Corporation

more than 20 locations

5 continents

35,000 staff & contractors

10 countries

Martha Mine – Historic Workings

• 1880s to 1952

• 7 vertical shafts

• 170 km drives

• 600 metres deep

• Open pit approx 250 metres deep

Waihi today

Martha East Layback

Favona

TrioCorrenso

Moonlight

Martha Exploration Project

NWGOffice

2nd June 2011 Strictly Confidential 4

What is our economic performance?

• We employ 400 staff and contractors

• Another 400 people indirectly employed

• On average we spend around $190M a year on goods, services, rates, taxes, royalties.

• 32% is spent locally (within 30km of Waihi)

• 29% is spent regionally (Bay of Plenty, Waikato, Coromandel)

• 21% is spent in the rest of NZ

• 18% is spent overseas

• In the last five years: $239m in capital expenditure and $694m in operational expenditure

• 82% of this money is spent in New Zealand

• Since 2006 we have spent $264m on goods and services in and around Waihi, a town of 4,500 people

• Since 1987 more than 2.5 million ounces of gold and 20 million ounces of silver have been produced

Before: evidence required for a RMA application

• Project description (mine design, mining method, geology, etc.)• Metallurgy• Air quality• Vibration• Receiving water quality / ecology• Noise • Geochemistry• Hydrogeology / settlement• Traffic• Economic impact• Property / community investment• Consultation summary….

6

During: monitoring of operations and reporting

• Real-time monitoring of vibration• Noise monitoring• Dust / air quality monitoring• Water levels• Water quality – bores around TSF; water in discharge and overflow ponds; water treatment plant quality; upstream and downstream monitoring

• Bio-monitoring• Ground settlement and tilt• Complaints

Reporting on all of the above to District and Regional Councils.

7

After: rehabilitation and monitoring

• Progressive environmental rehabilitation

• Economic and social sustainability

• Rehabilitation and capitalisation bonds:– Martha Pit Rehabilitation Bond: $26.2m (two separate bonds - jointly overseen by HDC and WRC).

– Ministry of Energy and Resources Bond: $1.25m– Water rights bond with WRC: $2m– Conservation bond: $0.057m (for DoC land)– Capitalisation bond: $10.4m (formation of Martha trust)

• Martha Trust: responsible for management of sites, rehabilitation, and monitoring in perpetuity.

8

What is our social & community performance?

9

Donations, sponsorships, partnerships

•Vision Waihi Trust & Waihi Community Vision• Gold Discovery Centre• Sport’n’Action sports hub• Creative Waihi• Waihi Heritage Vision• Social Development Group

•Waihi Gold Education Trust•Dotterel Watch partnership with DoC•Beach Hop Warm Up Party•Over 50 community organisations, groups or clubs assisted in 2011 •Riparian planting – almost 500,000 native trees and shrubs

10

Support for mining over time

11

Independent poll carried out by Phoenix Research Ltd

What do people in Waihi perceive to be the disadvantages of mining?

12

Disadvantages of Mining

7

7

8

7

9

17

19

16

23

21

28

34

5

7

10

9

8

10

17

18

21

28

33

36

6

5

1

4

15

9

6

27

17

40

43

36

6

7

8

8

9

12

17

18

21

27

32

35

0 20 40 60 80 100

Don't know about the mine

Tailing dams

Pollution

Mine becoming larger

Houses difficult to sell

Eyesore

Safety issues

Vibrations

Damage to the environment

Dust

Noise

None/no disadvantages

Total

Waihi East

Waihi Town (not East)

Waihi Environs

%N = 500 Only disadvantages mentioned by 7% in total, or more, are shown in this graph

What do people in Waihi perceive to be the benefits of mining?

13

Benefits of Mining

13

8

12

10

14

30

28

27

41

38

51

84

14

9

8

15

12

26

29

34

43

49

48

85

10

2

7

14

17

21

25

28

36

39

61

82

13

8

10

13

13

27

29

31

41

44

50

84

0 20 40 60 80 100

Don't know about the mine

Improved safety

Takes up less land

More life in the town

Mine not visible

Beautification

Good for local business

Services to schools

Company generous with donations

Tourist attraction

More money in community

Provides work opportunities

Total

Waihi East

Waihi Town (not East)

Waihi Environs

N = 500 Only benefits mentioned by 8% in total, or more, are shown in this graph

%

14/09/11

Resource Consents

•Community Relations – NWG must appoint a Company Liaison Officer to receive complaints from the community

14/09/11

Water Management System

• Restrict generation of acid drainage • Control of tailings underdrainage• Collection of water from:

Open pitFavonaProcess plantTailings storage facility Stormwater via Silt and Collection ponds

• Treat water to level appropriate for discharge• Discharge to the Ohinemuri River

14/09/11

River monitoring sites

a) OC2

b) OH3/Ac) OH5/Bd) OH1/UPDe) OH6/DPDf) RU1/R2

OC2 - Upstream of site OH3 – u/s of upper discharge OH5 d/s of upper discharge

Ruahorehore confluence OH1 u/s of lower discharge OH6 – d/s of lower discharge

14/09/11

TSF management

•Pond water level monitoring

Bird monitoring

Peak recorded number of birds taking sanctuary on any day = 900

TSF 1A Freeboard clearance

-1.50

-0.50

0.50

1.50

2.50

3.50

4.50

Dec

-04

Feb

-05

Apr

-05

Jun-

05A

ug-0

5O

ct-0

5D

ec-0

5F

eb-0

6A

pr-0

6Ju

n-06

Aug

-06

Oct

-06

Dec

-06

Feb

-07

Apr

-07

Jun-

07A

ug-0

7O

ct-0

7D

ec-0

7F

eb-0

8A

pr-0

8Ju

n-08

Aug

-08

Oct

-08

Dec

-08

Feb

-09

Apr

-09

Jun-

09A

ug-0

9O

ct-0

9D

ec-0

9F

eb-1

0A

pr-1

0Ju

n-10

Jul-1

0S

ep-1

0N

ov-1

0Ja

n-11

Mar

-11

May

-11

Jul-1

1S

ep-1

1N

ov-1

1

m

14/09/11

Vibration Monitoring System

•Compliance Requirements– Monitoring specifications comply with the criteria set down in the Hauraki District Plan

– A complete record of each blast is required, including all blast design details

– Any complaints are documented

14/09/11

Dust Monitoring

Ambient air trigger limit = 45 µg/m³ Trigger limits are from the National Air Quality Guidelines and not a compliance limit. The Mining Licence limit = 100 µg/m³)

0

20

40

60

80

100

120

31/01

/200

8

30/04

/200

8

31/07

/200

8

31/10

/200

8

31/01

/200

9

30/04

/200

9

31/07

/200

9

31/10

/200

9

31/01

/201

0

30/04

/201

0

31/07

/201

0

31/10

/201

0

31/01

/201

1

30/04

/201

1

µg

/m3

EnvironmentWaikato

6:61 Grey St(NWG)

Mining Limit

NWG Trigger

14/09/11

Rehabilitation

•Martha Pit filled to create recreational lake and park

– Estimate 27 years to fill with rain and natural groundwater inflows

– Est. 6-7 years to fill if supplemented by Ohinemuri River flood flows

Tailings Storage FacilitiesWetlands and native plantingsGrazing

To Open Cast Mine, Mine Underground or Not At All?

Advantages of Open Cast•Get more gold and silver because everything is taken•Can enhance safety•Is more economic when collecting small amounts of ore from a large variety of places•Is used when ore bodies are close to the surface

Advantages of Underground Mining•No issues with dust, noise•Able to work 24/7•Following more lucrative vein systems•Less above ground land use•Socially more acceptable•Encourages mining operations to seek larger ore bodies•Less waste rock •Back filling

21

Phil Salmon Newmont Waihi Gold07 8639880 or phillip.salmon@newmont.com