A MODERN MINING COMPANY - OZ Minerals...calibre of our employees and during 2012 we added more...

SUSTAINABILITY REPORT

2012OZ MINERALS LIMITED ABN 40 005 482 824

A MODERN MINING COMPANY

OZ MINERALS SUSTAINABILITY REPORT 2012

CONTENTS

OUR SUSTAINABILITY REPORT 2012 01

About this report 01Report scope, boundary and data collection 01Our readers 01

Materiality 02CEO letter 032013 commitments 05Performance summary 2012 06Company overview 07

Prominent Hill 07Carrapateena 08Exploration 08Equity interests 08Industry associations 08Awards 08

Independent Assurance Statement 09

VALUES AND GOVERNANCE 11

Values and ethics 11Strategic approach to sustainability 12

Corporate Governance 12Sustainability management 13Compliance 13Risk management 13Audits 14Transport of Prominent Hill concentrates 14Supply chain 14Closure planning 15

ECONOMIC PERFORMANCE 16

Operating and financial performance 16Highlights 17Socio-economic contributions 17Contributions to local economies 18

SOCIAL 20

Our people 20Workforce profile and diversity 20Attraction, retention and engagement 22Training and development 22Labour relations and human rights 24Employee communication and feedback 24

Safety and health 25Safety performance and management 25Health performance and management 25Safety and health communication 26Crisis management 28

Stakeholder engagement 29Social performance 31

Community engagement 31Cultural heritage and traditional rights 31Community investment, sponsorships and donations 32Local business support 33

ENVIRONMENTAL PERFORMANCE 34

Environmental performance 34Environmental performance summary 34Energy consumption and greenhouse gas emissions 35Air quality management 36Water management 36Waste management 37Land management and biodiversity 38

APPENDICES 39

Global Reporting Initiative 39Glossary 47Feedback 48


OUR SUSTAINABILITY REPORT 2012

ABOUT THIS REPORT

Our success as a modern mining company is driven

by our commitment to positively contribute to our

people, our communities and our environment.

We are striving to achieve our goal of Zero Harm by Choice. To do this, we embed a culture that ensures that the management of safety, health, environment and community comes naturally to our workforce and is a foremost consideration in every decision we make.

Our Sustainability Report is an opportunity for us to demonstrate our commitment to transparent and accountable reporting of our sustainability opportunities and challenges and our progress in managing them.

REPORT SCOPE, BOUNDARY AND DATA COLLECTION

This report details OZ Minerals’ sustainability performance for the calendar year to 31 December 2012. We produce a sustainability report annually, with our previous sustainability report covering the 2011 calendar year.

We have referred to the Global Reporting Initiative (GRI) G3.1 Reporting Guidelines as the main framework for our report preparation. Data for this report is collected using a combination of interviews and written questionnaires.

Our report is written to a B+ Application Level, in which we focus on the core indicators as well as additional indicators that are of particular relevance to our business. Where possible, we have incorporated indicators from the Mining and Mineral’s Industry Supplement. The complete list of indicators that have been reported against can be found in the Global Reporting Initiative section.

This report covers the Prominent Hill copper-gold operation, including near-mine exploration activities, and some aspects of the Carrapateena advanced exploration project in South Australia. Our offices are included in relation to energy use, greenhouse gas emissions and employee data only. Exploration projects outside of Australia are not included in energy data as they contribute less than two percent of energy use. Safety data includes the Cambodian exploration project up until May 2012, when the exploration interests were sold to Renaissance Metals.

We report both employee and contractor data in relation to our safety performance. In the ‘Our People’ section, data relates to permanent full-time and part-time OZ Minerals employees only and are calculated using the head count methodology, unless specified. Our methodology used to calculate gender representation and employee turnover was revised during the year. Details can be found in the Global Reporting Initiative section. The 2011 figures have been recalculated to enable direct comparison with 2012.

OZ Minerals measures greenhouse gas emissions using the Australian Government National Greenhouse and Energy Reporting (Measurement) Amendment Determination 2008 as amended in 2011. Further information on our greenhouse gas emissions can be found in our public submission to the Carbon Disclosure Project available at www.cdproject.net.

All monetary amounts in this document are in Australian dollars unless otherwise stated.

Information contained in the Performance Summary 2012 table and the greenhouse gas and energy section of this report have been assured by Net Balance Management Group (Net Balance). An independent third party check has been conducted on the GRI indicator table and the GRI application level in the Global Reporting Initiative section.

OUR READERS

We believe this report may be of most interest to shareholders, the financial community, governments, non-government organisations and academics.

We also communicate our economic, social and environmental performance with our employees and local communities on an ongoing basis, as outlined in the stakeholder engagement section of this report.

While we have attempted to make this report as broadly relevant as possible, we recognise that this report may not meet the needs of all OZ Minerals’ stakeholders. If you require more information, please contact us at [email protected].



MATERIALITYOur Sustainability Report focuses on issues that we consider to be of material significance to our sustainability performance that are highly important to both internal and external stakeholders. We conduct an internal material assessment in line with GRI guidance on materiality and completeness.

We determine report content through consultation and feedback processes with interested stakeholders and surrounding communities at Prominent Hill and Carrapateena. More information on our consultation process with stakeholders can be found in the stakeholder engagement summary section within this report.

An internal group with specialists representing different stakeholders is used to evaluate whether items should be included in the report by rating issues and assessing materiality accordingly.

As detailed in our Sustainability Policy, the following details our key drivers of sustainability at OZ Minerals:

SOCIAL ENVIRONMENT GOVERNANCE

› Protecting the health, safety and wellbeing of our people.

› Minimising our impact on the environment through efficient use of resources.

› Maintaining transparency, fair dealing and protecting stakeholder interests.

› Promoting a diverse, local workforce through employment and development opportunities.

› Contributing to the sustainable development of our local communities.



CEO LETTER

In 2012, we moved from having an open cut

copper-gold mine at Prominent Hill to extending

the operation to encompass an underground mine.

The Ankata underground is now operating

at full mining rates and we have commenced

the development of a decline for the Malu underground

mine, also at Prominent Hill.

Terry Burgess Managing Director and Chief Executive Officer

We have also moved ahead with our Carrapateena project, with early project infrastructure and plans to build an exploration decline using a tunnel-boring machine.

In early 2013, we released our conceptual growth vision for OZ Minerals. It is important that all stakeholders can fully understand how we are planning for the future in regard to the life of Prominent Hill beyond the open pit and the development of the Carrapateena project. The outlook out to 2020 includes mining from the open pit, Ankata underground and development of the Malu underground with the view to achieving first stoping of ore during 2014. Thereafter, beyond 2020, we are indicating potential to 2030 at Prominent Hill from further underground operations.

This timeline is conceptual and provides a basis for us to plan the future development of OZ Minerals and its potential activities. As this looks forward over many years, this planning and the timeline are by necessity subject to many variables, including required regulatory and community approvals, successful resource drilling, suitable technical and cost outcomes, adequate funding and favourable economic and market conditions.

We continued our strong sustainability performance in 2012. In particular, I am pleased to be able to report consistent positive improvements in safety performance since 2010. We had a significant reduction in our overall Total Recordable Injury Frequency Rate (TRIFR) by 47 percent from the previous year. Although we did have six lost time injuries, there were no serious disabling injuries.

During the year, we placed significant focus on our safety leadership. Our goal is to align the safety cultures between OZ Minerals and all of our contractors working on our sites. This has been very effective and we have made great gains in encouraging our workforce to report incidents and work together to find solutions to issues as they arise.

We implemented a behavioural based safety program in 2012 that empowers our workforce to discuss safety in a constructive manner. Our Peer Observation Program provides an opportunity for our workforce to identify unsafe behaviours and workplace hazards without blame. In its first year, the program has demonstrated success with regards to employee awareness and identification of potential risk. This is an important initiative as it embraces everyone who works on an OZ Minerals’ site – employees and contractors alike. With over 100 active field observers, we have a vast team looking at what we are doing and seeing where improvements can be made.

Our successes as a company are driven by the high calibre of our employees and during 2012 we added more people to the team, particularly for Carrapateena. As our workforce increases, we are continuing to create and sustain a workforce where diversity is appreciated and expected.

We are continuing to focus on providing employment opportunities for local people. There are currently around 170 Aboriginal people working at Prominent Hill – one of the highest Aboriginal representations within Australian mining workforces. In 2012, we completed our eighth Pre-Employment Training Program, which continues to have success in enabling local people that do not have experience within the industry to enter our workforce. Nine people from the nearby towns of Coober Pedy and Oodnadatta graduated from the program this year and have taken up various positions at Prominent Hill, including with some of our major contractors. To date, 68 people have obtained permanent positions at Prominent Hill through this program, of which 70 percent are Aboriginal people. We have a number of support services in place to assist our Pre-Employment Training Program graduates as they enter the workforce, including a Language, Literacy and Numeracy program and an on-site Indigenous Mining Mentor.


OUR SUSTAINABILITY REPORT 2012 > CEO LETTER continued

Our industry has traditionally had lower representation of women than men. At present, females constitute 24 percent of OZ Minerals employees and 18 percent of our Prominent Hill workforce – both higher than the industry average. We have a clear vision for improving diversity within our company. We have set measurable targets to improve gender diversity and have incorporated them into company-wide key performance indicators.

We continued to work towards our diversity targets of achieving 25 percent female representation in each of our job bands, particularly in regards to our middle management group. It has become apparent to us that in order for women to move into higher decision making roles, they must be supported as they develop the skills and experience necessary to move forward in their careers.

In 2012, we implemented an initiative in collaboration with Beach Energy to provide an opportunity for our high-performing women to be mentored by senior executives. The feedback from the participants and mentors from the 2012 Leading My Career program was very positive and as a result we are planning to have another Leading My Career program in 2013 with a third company.

A focus in 2012 was engaging with the community close to our Carrapateena project, located a two-hour drive from Port Augusta in South Australia. We held a series of community information sessions in regards to current and proposed activities, as well as informing the community of the opportunities for employment and business contracts which exist now and those expected into the future. These sessions were well attended, and subsequently over 120 local businesses requested pre-qualification for contracts and services. To date, over 60 businesses have successfully pre-qualified and will be given priority consideration as opportunities become available.

This year, we implemented a range of initiatives with environmental benefits. After an investigation of low emission diesel fuel alternatives, we will move to a new lower emissions fuel in 2013.

I would like to take this opportunity to thank all our stakeholders for their support in 2012 and I look forward to working with them in the future.

I welcome any feedback on this report so that we can continue to improve both our reporting and our sustainability performance.

Terry Burgess Managing Director and Chief Executive Officer



2013 COMMITMENTSOZ Minerals’ commitments for 2013 include targets and initiatives that represent, or are designed to achieve, a significant improvement in sustainability performance. We will measure our performance against the following commitments in 2013:

SAFETY AND HEALTH ENVIRONMENT OUR PEOPLE COMMUNITY RELATIONS

› No fatalities or serious disabling injuries.

› No significant (level three or above) environmental incidents.

› Increase numbers of females in all bands that do not currently have a representation of at least 25%.

› Have no significant (level three or above) community incidents.

› Continuous improvement in our Total Recordable Injury Frequency Rate.

› Demonstrate assessment of energy and water efficiency initiatives.

› Develop a cross-cultural awareness program for the Carrapateena project.

› All significant occupational exposure risks monitored and action plans put in place.

› Continue to progress our culture development initiatives.



l Achieved l In progress l Not achieved

Commitment detail Performance 2012 Progress

Safety and health

A reduction in the Total Recordable Injury Frequency Rate (TRIFR) compared with 2011.

TRIFR of 10.49 (improvement of 47%) l

A reduction in the Lost Time Injury Frequency Rate (LTIFR), number of LTIs and duration rates compared with 2011.

LTIFR of 1.46 (marginal decrease compared with 2011) Six LTIs (compared with five in 2011)*

l

Train 10% of the workforce to be ‘observers’ as part of the OZ Minerals Peer Observation Program.

10% of the Prominent Hill workforce are trained as observers for the Peer Observation Program.

l

Roll-out of the Peer Observation Program to the Exploration group.

The Exploration group has trained observers for the Peer Observation Program.

l

Progress OZ Minerals cultural change initiatives. A Culture Development Strategy has been developed and the first phase has been implemented at Prominent Hill.

l

Significant Prominent Hill occupational hygiene exposures controlled with action plans.

All significant exposures are controlled with implemented actions and maintenance monitoring is ongoing to ensure the controls remain effective.

l

Environment

Pro-actively demonstrate resource efficiency initiatives in regard to water, energy and waste.

Waste facility completed enabling increased recovery of recyclables. Implementation of a more advanced process to effectively reuse water in the operation.Investigated opportunities for low emission and fuel saving diesel alternatives.

l

Have no environmental non-compliances or significant incidents.

No significant incidents. Four pastoralist bores have declined below agreed limits and this issue is being managed.**

l

Our people

Increase numbers of females in all bands that do not currently have a representation of at least 25%.

Bands A, B and E/F*** have a minimum of 25% female representation. Bands C and D have increased rates of female participation since 2011.

l

Mentor all ‘high-potential’ and ‘high-performing’ females in addition to existing programs.

The first Leading My Career program was conducted in 2012 to provide specialist mentoring and training for high-performing females.

l

Socio-economic contributions

Demonstrate creation of opportunities for local contractors and suppliers.

Over 60 local businesses have successfully pre-qualified for contracts at Carrapateena.

l

Continue to invest in employment training for local people with a particular focus in 2012 on Coober Pedy and nearby communities.

Nine graduates successfully completed the eighth Pre-Employment Training Program from Coober Pedy and Oodnadatta.

l

Community relations

Have no significant community incidents. No significant community incidents. l

Develop plans to address all significant community issues from the 2011 community baseline survey.

The eighth Pre-Employment Training Program was conducted in 2012. OZ Minerals has continued ongoing stakeholder engagement with local communities.

l

* Duration rates are in the process of being measured. ** For further information, see the water management section of this report. *** Job bands E/F are combined due to small numbers of employees.

PERFORMANCE SUMMARY 2012


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COMPANY OVERVIEWOZ Minerals is a modern mining company focussed on copper. We pursue projects that deliver attractive returns that add value for our shareholders.

We are well positioned for growth. Prominent Hill is a copper-gold mine with the Malu open pit, Ankata underground and the Malu underground development.

OZ Minerals also has the Carrapateena copper-gold exploration project and has recently provided a significant upgrade to this Mineral Resource and identified an exciting regional discovery close by to the Carrapateena deposit.

With an experienced team, a strong balance sheet and well performing assets, we are positioned for the future.

PROMINENT HILL

Prominent Hill

Product Copper concentrate (containing gold and silver)

Mining Method Open pit and underground mine

Processing Method Conventional crushing, grinding and flotation

2012 Production 101,737 tonnes contained copper; 140,746 ounces contained gold

2013 Production Guidance

90,000 – 95,000 tonnes copper; 130,000 – 150,000 ounces gold

Resources Copper-gold 264.8Mt @ 0.99% copper, 0.7 g/t gold (2,611kt copper, 5.8Moz gold) Gold only 54.4Mt @ 0.08% copper, 1.5g/t gold (42kt copper, 2.6Moz gold)*

Reserves 69.8Mt @ 1.1% copper, 0.6g/t gold (748kt copper, 1,329koz gold)*

Sales Prominent Hill concentrates are shipped to customers via the Adelaide railway to Port Adelaide and then by ship to customers in Asia and Europe.

Location 650km north west of Adelaide, 130km south east of the town of Coober Pedy

CASE STUDY > ANKATA UNDERGROUND OPENING

One of the most significant events that occurred in 2012 for OZ Minerals was the commencement of the Ankata underground mine at Prominent Hill.

The underground mine was officially opened by Premier Jay Weatherill in August 2012.

The $148 million mine was constructed over two years to target a high-grade deposit located 800 metres west of the existing Malu open pit.

The first ore from stoping was achieved in the first quarter 2012, and the full mining rate attained in the third quarter 2012.

Over the period of its mine life Ankata is expected to annually contribute approximately 1.2 million tonnes of high grade copper ore containing approximately 20,000 to 25,000 tonnes of copper. A targeted resource definition drilling program has resulted in a 2.9 million tonne increase in the Ankata Ore Reserves, extending the Ankata mine life by an additional two years.

The Ankata underground mine has added more than 150 employees to the Prominent Hill workforce.


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OUR SUSTAINABILITY REPORT 2012 > COMPANY OVERVIEW continued

Carrapateena

Project Carrapateena

Location Located in central South Australia on the eastern margin of the Gawler Craton. 130 kilometres from Port Augusta and 250 kilometres south east of Prominent Hill.

Deposit Iron oxide copper-gold deposit

Status Advanced exploration

Resources 292Mt @ 1.29% copper, 0.48g/t gold

Carrapateena is an important step in building a project pipeline for OZ Minerals. An iron oxide copper-gold deposit of a similar style to Prominent Hill, Carrapateena has potential for a significant mine life.

Located 250 kilometres south east of Prominent Hill, the Carrapateena project includes a tenement area consisting of over 1,070 square kilometres in a highly prospective region.

EXPLORATION

The key focus in 2012 included investigating underground options for extending the mine life of Prominent Hill beyond this current decade and significantly upgrading the resource estimate at Carrapateena. Both of these endeavours were successful.

In the Prominent Hill region, OZ Minerals has 4,000 square kilometres of tenements in its own right and access to 3,000 square kilometres of tenements through the joint venture with IMX Resources Limited (OZ Minerals 51 percent).

In January 2013, OZ Minerals announced a new mineral discovery at the Khamsin prospect, approximately 10 kilometres north west of the Carrapateena deposit as part of its regional exploration program. In 2013 future geophysics and drilling will be undertaken at the Khamsin prospect and other prospects in the region and will allow OZ Minerals to have a more targeted drilling campaign. For more information regarding the regional prospects around Carrapateena, see our website.

OZ Minerals completed the sale of its Cambodian exploration interests to Renaissance Minerals in May 2012.

EQUITY INTERESTS

OZ Minerals has strategic interests in a number of listed resource companies. Further information on our equity investments can be found on the OZ Minerals website, www.ozminerals.com.

INDUSTRY ASSOCIATIONS

OZ Minerals is a member of numerous organisations and associations. These include: – Aboriginal Enterprises in Mining, Exploration and Energy (AEMEE)

– Australian Investor Relations Association – Australian Mining and Petroleum Law Association – Australian Institute of Mining and Metallurgy (AusIMM) – The Australian Mines and Metals Association (AMMA) – Business Council of Australia – Copper Development Centre Australia – Minerals Council of Australia* – Mining Energy and Engineering Academy – Resources and Engineering Skills Alliance (RESA) – South Australian Arid Lands Natural Resource Management Board (SAALNRM)

– SAALNRM – Marla Oodnadatta Natural Resource Management Group

– SAALNRM – Kingoonya Natural Resource Management Group

– South Australian Chamber of Mines and Energy (SACOME)*

* OZ Minerals’ CEO and Managing Director is on the governance body of MCA and SACOME and is a Non-Executive Director of AMMA. OZ Minerals subscribes to the SACOME charter and the MCA charter, which is currently under review.

AWARDS

OZ Minerals was the recipient of the following awards in 2012:

Award Awarded By

Australian Women in Resource Alliance (AWRA) Award

Australian Mines and Metals Association (AMMA)

Excellence in Social Inclusion South Australian Premier’s Social Inclusion in Mining & Energy Award

CARRAPATEENA



INDEPENDENT ASSURANCE STATEMENT

To the Board of Directors, Management and stakeholders of OZ Minerals Limited:

OZ Minerals Limited (OZ Minerals) commissioned Net Balance Management Group Pty Ltd (Net Balance) to carry out a limited assurance engagement of the information contained in the 2012 Performance Summary table and the greenhouse gas emissions (the ‘performance data’) disclosed in the organisation’s 2012 Sustainability Report (Report). The Report presents OZ Minerals’ sustainability performance over the period 1 January 2012 to 31 December 2012.

Assurance Objectives

The objective of the assurance engagement was to state whether anything had come to our attention that would cause us to believe, based on our limited assurance procedures, that the selected performance data contained within the Report had not been prepared and presented, in all material respects, in accordance with criteria outlined below.

Responsibility

OZ Minerals’ management were responsible for the preparation and presentation of the Report. This statement represents the assurance provider’s independent opinion. Net Balance’s responsibility in performing its assurance activities was to the management of OZ Minerals alone

and in accordance with the terms of reference agreed with them. We disclaim any assumption of responsibility for reliance on this assurance statement or on the subject matter to which it relates, to any person other than the management of OZ Minerals, or for any purpose other than that for which it was prepared. Other stakeholders should perform their own due diligence before taking any action as a result of this statement.

Assurance Standard and Scope

The assurance engagement was conducted in accordance with Australian Standards on Assurance Engagements ASAE3000 Assurance Engagements other than Audits or Review of Historical Financial Information (“ASAE3000”) issued by the Australian Auditing and Assurance Standards Board.

The engagement covered the following in the Report: – Limited assurance of data and statements contained in the ‘Performance Summary 2012’ table.

– A review of scope 1 and scope 2 greenhouse gas emissions data disclosed in the ‘Energy consumption and greenhouse gas emissions’ section of the report.

– A Global Reporting Initiative (GRI) G3.1 Application Level Assessment.

The level of assurance provided was limited, as defined in the ASAE3000. The criteria for the assurance of the performance data are outlined in Table 1 below:

Table 1: OZ Minerals performance data for assurance, for the period 1 January 2012 to 31 December 2012

Sustainability indicator Description Relevant criteria

Safety and Health Foster a culture of continuous improvement to be reflected in a reduction in lost time injuries (LTIs) and duration rates and a reduction in the Total Recordable Injury Frequency Rate (TRIFR) compared with 2011.

As per OZ Minerals glossary and GRI G3.1 LA7

Train 10% of the workforce to be ‘observers’ as part of the OZ Minerals Peer Observation Program.

As per OZ Minerals glossary

Roll-out of the Peer Observation Program to the Exploration group. As above

Progress OZ Minerals’ cultural change program initiatives. As per OZ Minerals glossary

Control significant Prominent Hill occupational hygiene exposures with action plans. GRI G3.1 LA7

Environment Demonstrate resource efficiency initiatives in regard to water, energy and waste. GRI G3.1 EN6

Have no environmental non-compliances or significant incidents. GRI G3.1 EN28

Our People Increase numbers of females in all bands that do not currently have a representation of at least 25%.

GRI G3.1 LA2

Mentor all ‘high potential’ and ‘high performing’ females in addition to existing programs.


Socio-economic Contributions

Demonstrate creation of opportunities for local contractors and suppliers. GRI G3.1 EC6, SO1

Continue to invest in employment training for local people with a particular focus in 2012 on Coober Pedy and nearby communities.

GRI G3.1 EC7

Community Relations Have no significant community incidents. As per OZ Minerals glossary

Develop plans to address all significant community issues from the 2011 community baseline survey.


Greenhouse Gas Emissions

A review of greenhouse gas emissions data GRI G3.1 EN16, EN17, EN19, EN20


OUR SUSTAINABILITY REPORT 2012 > INDEPENDENT ASSURANCE STATEMENT continued

Inherent Limitations

Because of the inherent limitations of any internal control framework and underlying data, it is possible that fraud, error or non-compliance may occur and not be detected. A limited assurance engagement under ASAE3000 is restricted primarily to enquiries and analytical procedures and the work is substantially less detailed than undertaken for a reasonable assurance engagement. As such the level of assurance is lower than would be the case for a reasonable assurance engagement under ASAE3000. Accordingly, we have expressed our conclusion on the above basis.

Additionally, non-financial performance data may be subject to more inherent limitations than financial data, given both its nature and the methods used for determining, calculating and sampling or estimating such data.

Assurance Methodology

Net Balance’s assurance methodology consisted of evaluating the reliability of the selected performance data through the review of systems, processes, information and calculations used to support the data. The procedures selected depend on the assurance provider’s judgement, including assessment of the risks of material misstatement of the selected performance data prepared by OZ Minerals. In making judgements, consideration was given to the internal controls relevant to the calculation and collection of the selected performance data.

Evidence gathering for the evaluation of reliability and accuracy of performance data involved the following:

– Interviews with data owners to understand the performance data metric definitions, data sources, reliability of data, completeness of data and the basis for significant assumptions used in reporting of performance. Particular attention was paid to the consistency with recognised published standards and guidelines.

– Interviews with key personnel to obtain an understanding of the systems and the process used for recording, collation and retention of performance data.

– Review of internal and IT controls relevant to the calculation of the performance data.

– Re-performing calculations for a sample of metrics. – Collection and evaluation of supporting documentary evidence.

The assurance engagement was undertaken between January and March 2013 and the procedures took place at OZ Minerals’ head office in Melbourne and site office in Adelaide.

Our Independence

Net Balance has not had any part in collecting and calculating the performance data, or in drafting Report content. During the reporting period Net Balance also provided assurance over OZ Minerals’ National Greenhouse and Energy Reporting (NGER) submission. As these services were of an audit nature, they are complimentary to this engagement and do not impact upon Net Balance’s independence. Net Balance confirms that we are not aware of any issue that could impair our objectivity in relation to this assurance engagement. Further, in conducting this assurance engagement Net Balance has met the independence requirements of our Independence Policy (http://www.netbalance.com/services/assurance). The Net Balance assurance team has the required competencies and experience to conduct this engagement.

Limited Assurance Conclusion

Based on our limited assurance procedures, nothing has come to our attention that causes us to conclude that the performance data (as described in Table 1), has not been prepared, in all material respects, in accordance with the relevant legislation, internally developed criteria or GRI indicator protocols. Net Balance also confirms that the GRI Application Level check classified the Report as B+.

On behalf of the assurance team 5 March 2013 Melbourne, Australia

Kirsten Simpson Associate Director, Net Balance Lead CSAP


VALUES AND GOVERNANCE

VALUES AND ETHICS

We are committed to upholding our core values of Respect, Integrity,

Action and Results. These articulate our vision of sustainability and

how we translate it into practice.

We have developed codes and policies to help employees understand what is expected of them. These include the OZ Minerals Code of Conduct, Whistleblower Policy, Securities Trading Policy, Continuous Disclosure Policy, Shareholder Communication Policy and Risk Management Policy. These are made available to the OZ Minerals workforce via the intranet and are also available on the OZ Minerals website.

The Code of Conduct describes standards for appropriate ethical and professional behaviour for all directors, employees and contractors working for OZ Minerals. The Code provides policy on conflicts of interest, bribery and corruption, privacy and anticompetitive behaviour. Breaches of the Code are taken seriously by OZ Minerals and may be reported with the support of the Whistleblower Policy.

In January 2013, it was reported in the media that the Australian Federal Police had opened an earlier investigation into OZ Minerals acquisition in 2009 of the remaining holding in the Okvau joint venture in Cambodia. An October 2012 OECD report stated, without identifying the specific case by name, that the AFP received information from their overseas network that the transaction had been undertaken with due diligence and that all payments were made at the joint venture partner’s request. We maintain that we undertook this transaction in a normal commercial and appropriate manner.

RESPECT INTEGRITY ACTION RESULTS

› For the safety of everybody in our business

› Honest, courageous and open in our communication

› Being bold, decisive and agile

› Delivering on goals and objectives

› For each other as individuals › Honouring commitments › Being rigorous, responsible and accountable

› Meeting or exceeding expectations

› For communities, cultures and for diversity

› Consistently behaving in line with our values

› Continually improving › Aspiring for excellence

› For all our stakeholders › High standards of business ethics

› Innovating to add value › Creating sustainable value

› For the environment › Never compromising on health and safety


OZ MINERALS BOARD OF DIRECTORS

MANAGERCARRAPATEENA

PROJECT

HEAD OFINVESTOR RELATIONS

COMPANY SECRETARYAND GENERAL COUNSEL

HEAD OF BUSINESSDEVELOPMENT

MANAGING DIRECTOR AND CEO

CHIEF FINANCIALOFFICER

GENERAL MANAGERPROMINENT HILL

OPERATIONS

HEAD OF PUBLIC AFFAIRS AND

SUSTAINABILITY

HEAD OFEXPLORATION

Executive Committee

OZ MINERALS BOARD

BOARD SUSTAINABILITYCOMMITTEE

BOARD AUDITCOMMITTEE

NOMINATION ANDBOARD GOVERNANCE

COMMITTEE

REMUNERATIONCOMMITTEE

HEADS OF DISCIPLINES LINE MANAGERSSUSTAINABILITY NETWORKINCLUDING GROUP OFFICE

SUSTAINABILITY TEAM ANDOPERATIONAL SHEC* MANAGERS

MANAGING DIRECTOR AND CHIEF EXECUTIVE OFFICER

EMPLOYEES

*Safety, Health, Environment and Community

OUR SUSTAINABILITY REPORT 2012 VALUES AND GOVERNANCE > VALUES AND ETHICS continued

OZ Minerals is committed to ensuring concerns regarding illegal conduct or malpractice can be raised in good faith without being subject to victimisation harassment or discriminatory treatment, and to have the concerns properly investigated. The Whistleblower Policy provides a mechanism by which all employees can confidentially report improper or illegal conduct without fear or discrimination.

To safeguard against insider trading, OZ Minerals’ Securities Trading Policy prohibits directors and employees from trading OZ Minerals securities if they are aware of any information that would be expected to have a material effect on the price of Company securities. The policy also establishes ‘black out periods’, during which directors and employees must not trade OZ Minerals securities.

The Continuous Disclosure Policy outlines OZ Minerals’ procedure to comply with its continuous disclosure obligations under the listing rules of the Australian Securities Exchange (ASX) and the Corporations Act 2001.

Shareholder communications are at all times governed by OZ Minerals’ obligations under the Corporations Act and, in particular, the continuous disclosure provisions and ASX Listing Rules. The Shareholder Communication Policy outlines OZ Minerals’ commitment to provide timely, accurate and compliant information to shareholders about OZ Minerals to enable them to exercise their rights as shareholders in an informed manner. The purpose of this policy is to promote effective communication with shareholders by providing them with access to the latest information about OZ Minerals and to make it easier to participate in general meetings.

OZ Minerals is committed to effective risk management, which is central to our continued growth and success. Our aim is for risk management to become embedded into all our business systems, mining operations and exploration activities.

STRATEGIC APPROACH TO SUSTAINABILITYResponsibility for our strategic approach to sustainability lies with the OZ Minerals Board.

At the end of 2012, there were eight Directors, including one female Director. Apart from the Managing Director and CEO, all Directors are independent non-executives. Profiles of each Director, including their skills, experience, relevant expertise and special responsibilities are available in our Annual Report and on our website.

Responsibility for OZ Minerals’ business processes and sustainability performance lies with the Managing Director and CEO, supported by the Executive Committee and the executive management team.

The Managing Director and CEO’s performance is measured against detailed Key Performance Indicators (KPIs) relating to values and governance, economic and sustainability performance. This forms the basic remuneration and short-term incentives (STIs). The Managing Director and CEO’s KPIs cascade to all direct reports.

All OZ Minerals’ general managers are accountable for upholding OZ Minerals’ values and maintaining strong governance, economic and sustainability performance within their particular area of responsibility.

OZ Minerals’ Organisational and Management Structure

CORPORATE GOVERNANCE

OZ Minerals’ approach to corporate governance is to have a set of values and behaviours that ensure transparency and fair dealing and protect stakeholder interests.

The Board is committed to following the Corporate Governance Principles and Recommendations as set out by the ASX Corporate Governance Council. The Board and management regularly review OZ Minerals’ policies and practices to ensure that OZ Minerals continues to maintain and improve the OZ Minerals Governance Management Standard.

The specific aspects that support the implementation of this approach are described in our Annual Report in the Corporate Governance section in accordance with the ASX Recommendations. Details of the main policies of corporate governance adopted by OZ Minerals are also available on our website, www.ozminerals.com.

To facilitate the execution of its responsibilities, the Board’s Committees provide a forum for a more detailed analysis of key issues. The current Board Committees are the Sustainability Committee, the Audit Committee, the Nomination and Remuneration Committee, and the Board Governance Committee.

The Sustainability Committee’s role is to assist the Board in the effective oversight of responsibilities in relation to safety, health, environment and community issues across OZ Minerals and the management of risks relating to these issues.

OZ Minerals’ Sustainability Governance


OUR SUSTAINABILITY REPORT 2012 VALUES AND GOVERNANCE

SUSTAINABILITY MANAGEMENTOZ Minerals is exposed to numerous risks across our business, most of which are common to the mining industry. OZ Minerals’ commitment and approach to managing these risks is outlined in OZ Minerals’ Risk Management Policy and is available on our website.

OZ Minerals’ Risk Management Policy is aligned to the ISO Standard 31000 for risk management and is used as a common methodology to identify, assess, evaluate, treat, monitor and communicate risks for all aspects of OZ Minerals. A risk register is produced and the Executive Committee reviews the risks and the status of action items identified to mitigate the risks each quarter.

Both the Sustainability Committee and Audit Committee assist the Board in monitoring OZ Minerals’ risks. The Sustainability Committee monitors OZ Minerals’ non-financial risks as they relate to the environment, health, safety or community.

The Audit Committee reviews and assesses the adequacy of OZ Minerals’ internal control and financial management systems and accounting and business policies. The Audit Committee is given further assurance on OZ Minerals’ financial management systems through OZ Minerals’ internal audit function.

Senior management is responsible for risk management in their respective areas of accountability. They ensure that procedures exist to monitor risks and, through observation and audit, gain confidence that effective controls are implemented and consistently applied.

The OZ Minerals Risk and Opportunity Management Standard provides a common framework for systemic management of risks and opportunities to OZ Minerals in all areas, including health, safety, environment and community relations, as well as all other aspects of the business that involve an element of risk. The standard applies to all managed facilities (including contractor activities) and addresses the risk management process, including risk assessment and risk mitigation/control, action planning, training, audits and reviews.

The OZ Minerals Sustainability Policy details our commitments to sustainability management and responsible corporate governance.

The policy is supported by our core values that underpin the behaviour of all OZ Minerals’ employees and contractors. The policy describes our commitment to Zero Harm by Choice, which requires us to embed a culture that ensures the management of safety, health, environment and community comes naturally to our workforce and is a foremost consideration in every decision we make.

For a copy of the OZ Minerals Sustainability Policy, please refer to our website www.ozminerals.com.

OZ Minerals applies a comprehensive set of sustainability management standards to manage the safety, health, environmental and social aspects of our business. These standards apply to all phases of mine life and are subject to periodic review to ensure we continue to meet the needs of OZ Minerals, are aligned to relevant legislation and reflect industry best practice standards. For information on how our sustainability standards apply to our contractors, see the Supply Chain section of this report.

Our Sustainability Standards are divided into four sections;

– Integrated Management Systems Standards, that provide an overall management framework;

– Safety and Health Standards that detail our management of safety, health and security risks;

– Environmental Standards that detail our management of environmental risks; and

– Social Standards that detail our management of social risks.

A full list of our Sustainability Standards can be found on our website.

COMPLIANCEOZ Minerals regards compliance with all relevant regulations and legislation as the minimum performance standard for all operations and activities. No fines or non-monetary sanctions were imposed during the reporting period. For more information on compliance issues, including our actions to address impacts and prevent reoccurrence, see the environmental performance and social performance sections of this report.

RISK MANAGEMENT


OUR SUSTAINABILITY REPORT 2012 VALUES AND GOVERNANCE

AUDITSOZ Minerals conducts regular audits to systematically and objectively verify conformance with sustainability management standards and legal requirements, as well as to provide recommendations to improve safety, health, environment and social performance. The Audit and Assessment Management Standard addresses process requirements for internal and external auditing and assessment, including planning, training, methodology, schedules, follow-up and close-out of audit and assessment findings.

In 2012, OZ Minerals completed its fourth report under the National Greenhouse and Energy Report Act 2007 (NGER). Prior to the submission of the report, a comprehensive independent external audit was conducted on the processes that OZ Minerals has developed to meet the requirements of the NGER Act 2007.

TRANSPORT OF PROMINENT HILL CONCENTRATES

Copper-gold concentrates produced at Prominent Hill are transported by road to a rail siding and then by rail to Port Adelaide. The concentrate is then shipped to customers in Asia and Europe.

There were no reported incidents of non-compliance with regulations or voluntary codes related to the safety and health impacts of our products, information and labelling, breaches of customer privacy, losses of customer data or marketing communications during the reporting period.

All sale contracts for OZ Minerals’ products contain pre-agreed chemical specification ranges. Monitoring and testing regimes are maintained to ensure adherence to all of these contractual commitments. This process of consultation and contracting assists in prevention of issues in downstream smelting or refining of OZ Minerals’ products.

All customers and transport providers are supplied with a Material Safety Data Sheet that describes the handling requirements associated with our product.

OZ Minerals uses specially designed containers to transport copper concentrate from Prominent Hill to Port Adelaide. The containers are offloaded using the rotainer system, by rotating the container to release the concentrate directly into the hold of the ship. This system enables OZ Minerals to bypass a concentrates shed and traditional loading facilities, maintaining a high environmental standard during ship loading.

Edith River incident

On the 27 December 2011, a Genesee & Wyoming Australia (GWA) mixed goods train travelling north to Darwin derailed in bad weather near Edith River, Northern Territory. The incident resulted in approximately 1,200 tonnes of OZ Minerals’ copper concentrate entering the flooded Edith River.

OZ Minerals initiated a recovery program for the spilled concentrate, returning the recovered concentrates together with any associated materials to Prominent Hill, and conducted regular environmental monitoring of the Edith River derailment site.

Water quality tests were conducted by the regulator, the Department of Lands, Planning and Environment (DLPE) (formerly Department of Natural Resources, Environment, the Arts and Sport, NRETAS) from 28 December 2011 until 17 July 2012.

In December 2012, the environmental regulator in the Northern Territory published its findings into the Edith River incident and determined that no further action was required by OZ Minerals. This was the last of the various findings into the incident by the different regulatory bodies, including NT WorkSafe and the Australian Safety Transport Board.

The Environment Protection Agency (EPA) of the Department of Lands, Planning and the Environment completed its investigation in December 2012 and released a public report on the Agency’s website. The investigation found that there was no actual environmental harm attributable to the train derailment and determined that further action is not warranted.

SUPPLY CHAINOur greatest supply impact is through the contracting of mining and other services. Our largest material inputs include diesel fuel, explosives, grinding media used in our processing plant, and cement, for use within our underground mine. The majority of these materials are sourced from large, reputable organisations with operations within Australia.

Our Procurement Policy outlines a consistent approach to procuring goods and services.

We support economic development in the communities in which we operate by seeking to buy locally first and then regionally, within the state, nationally or internationally where local procurement is not available, or is not competitive.

All of our contractors are subject to a pre-qualification process. Each business is comprehensively evaluated against criteria including safety, health, environment and community aspects and management of risk, internal auditing processes and employee management. Our contractors are also measured on their processes for evaluating potential third party contract services. Minimum performance criteria are required to be met to attain contracts with OZ Minerals, corresponding to the risks associated with the contracts.


OUR SUSTAINABILITY REPORT 2012 VALUES AND GOVERNANCE > SUPPLY CHAIN continued

Our major contractors have requirements in their contracts consistent with the OZ Minerals Code of Conduct and Safety, Health, Environment and Community Management Standards. Our contractors are required to undertake a comprehensive program of Company and work site inductions to develop a clear understanding of the requirements of working at our sites. All high value and high risk contracts are required to submit a Safety, Health, Environment and Community Management Plan that describes the operational controls that are to be implemented to manage significant risks. We require our contractors to adhere to our values of Respect, Integrity, Action and Results, and maintain behaviour that ensures the safety of our workforce.

Our contractors working at our sites have an OZ Minerals representative managing their contract. This provides us with a direct opportunity to maintain ongoing engagement with regards to sustainability management.

CLOSURE PLANNINGClosure planning is a consideration during all stages of operations. It is OZ Minerals’ intention that through careful and proactive planning the social and environmental impacts of eventual mine closure are mitigated. Our Social Closure Standard in addition to our Environmental Rehabilitation and Closure Standard aim to ensure that the potential closure and post-closure risks and opportunities are effectively identified and managed throughout the mining life cycle.

The potential impacts of closure are an ongoing consideration in our engagement with governments and local communities and our support for community development activities, including development of local businesses not related to mining activities.

The Prominent Hill operation has developed a Life of Mine Working Closure Plan as well as a Mining and Rehabilitation Program (MARP), which outlines closure planning for the site. The Closure Plan is reviewed annually and independently audited every second year in accordance with our internal accounting policy.

Provisions are made for the estimated cost of rehabilitation, decommissioning and restoration relating to areas disturbed during the mine’s operations. Further details on provisions, including labour transitions, amount and type of financial provision and stakeholder engagement processes, are available in the 2012 Annual Report.


ECONOMIC PERFORMANCE

OPERATING AND FINANCIAL PERFORMANCE

This year saw many significant milestones achieved, with production and

cost guidance met at Prominent Hill and an annual dividend payment to our

shareholders again at the top of the payout ratio range; with the final dividend

double that of the interim dividend.

Successful drilling programs across the group during 2012 have led to the 2.9 million tonne increase in Ore Reserves at the Prominent Hill Ankata underground mine – effectively increasing its life by approximately two years. A focused infill exploration drilling program at Carrapateena during 2012 has led to a 43 percent increase in Mineral Resources and has provided OZ Minerals with the confidence to fast track these exploration activities through the construction of an exploration decline to allow further geotechnical testing of this deposit.

We announced a regional discovery at the Khamsin prospect approximately 10 kilometres north west of the Carrapateena deposit. In 2013, we will focus on resource drilling in the Malu underground and drill testing of targets at Carrapateena.

2013 is a transitional year for OZ Minerals, as we build a foundation for future production from Prominent Hill, with the peak year of waste removal from the Malu open pit and the development of the Malu underground mine set with the objective of first stoping ore in 2014.

With a strong balance sheet and no debt, OZ Minerals is in an excellent position to capitalise on growth from within our own portfolio and to continue our disciplined evaluation of further value-adding opportunities in copper.


FOREIGN EXCHANGERESERVES

MACROECONOMIC BENEFITS

BENEFITS

FOREIGN DIRECTINVESTMENTGDP EXPORTS

DIRECT BENEFITS

PAYE TAXESROYALTIESCOMPANY TAX TENEMENT RENTAL

COMMUNITYDEVELOPMENT

ASSOCIATEDEMPLOYMENT

TECHNOLOGYTRANSFERINFRASTRUCTURE BUSINESS

DEVELOPMENT

MULTIPLIEREFFECT

SAFETY AND HEALTH

EDUCATIONAND TRAINING

EXPENDITURE –GOODS AND SERVICESEMPLOYMENT

INDIRECT BENEFITS


HIGHLIGHTS

– Significant improvement in safety performance at Prominent Hill during 2012.

– Final unfranked dividend of 20 cents per share resolved to be paid – double the interim dividend. Total dividend with respect to 2012 earnings of 30 cents per share representing a payout ratio of 60% of net profit after tax from normal operations which is at the top of the dividend payout range.

– Prominent Hill production and costs were within OZ Minerals’ stated guidance.

– Development of Ankata underground completed for $148 million within original budget. Underground operations commenced during the year with mining of high grade copper ore.

– Resource drilling during 2012 led to a 2.9Mt in the Ore Reserves of the Ankata underground, which represents about two additional years of mining.

– The infill exploration program at Carrapateena provided some excellent drilling results during 2012 along with a new 2012 Mineral Resource estimate – 292Mt @ 1.29% Cu (at a 0.7% copper cut-off) representing a 43% increase over the 2011 Mineral Resource estimate.

– Acquisition of a Tunnel Boring Machine to accelerate the development of the exploration decline at Carrapateena.

– An exciting new regional discovery made at the Khamsin prospect approximately 10 kilometres north west of Carrapateena.

– Prominent Hill delivered another consistent performance for 2012 resulting in Group: – Revenue of $985.7 million; – Underlying EBITDA of $334.1 million; and – Net profit after tax of $152.0 million.

– Net cash inflows from operating activities of $318.8 million, with cash balance at 31 December 2012 of $659.0 million.

– On-market share buyback of $200 million completed, with $100 million of shares bought back in the first half of 2012.

SOCIO-ECONOMIC CONTRIBUTIONSOZ Minerals makes significant contributions to local, regional and national economies directly through the payment of taxes and royalties to governments, as well as payments to our workforce and suppliers. Our operations also add significant value through indirect employment and investments in community development initiatives and programs. The benefits from investments made by OZ Minerals include improvements in infrastructure, health, safety awareness, education and training, and local business development. These direct and indirect benefits are illustrated in the OZ Minerals benefits model below.

OZ Minerals’ benefits model


Breakdown of 2012 Expenditure By origin

Total

National suppliers A$677.9m> Prominent Hill A$649.2m> Carrapateena A$28.7m

South Australian suppliers A$165.7m> Prominent Hill A$146.5m> Carrapateena A$19.2m

International suppliers A$19.0m> Prominent Hill A$18.4m> Carrapateena A$648,000

Regional suppliers A$12.6m> Prominent Hill A$7.4m> Carrapateena A$5.2m

Local suppliers A$11.3m> Prominent Hill A$10.5m> Carrapateena A$850,000


OZ Minerals actively seeks to provide employment and business opportunities for people from local communities, including Aboriginal people, to generate long-term and sustainable benefits for the local region. The term local is defined as the areas close to the operation from which employees and suppliers may be drawn.

Total significant financial assistance received from the Australian Government was a total of $135,723, including subsidies and financial incentives.

OZ Minerals’ operations preferentially purchase goods and services locally wherever feasible. Our Prominent Hill operation and Carrapateena project made significant contributions to local and regional economies during the 2012 reporting period, totalling $165.7 million to South Australian suppliers and contractors.

From activities based at our Prominent Hill operation, a total of approximately $146.5 million was spent on goods and services in South Australia in 2012, with approximately $10.5 million spent locally in the Coober Pedy region and approximately $7.4 million spent regionally in the Upper Spencer Gulf.

Our Carrapateena project spent a total of $19.2 million on goods and services in South Australia, with approximately $850,000 spent locally in the Port Augusta region and approximately $5.2 million in the Upper Spencer Gulf region.

These figures do not include wages and salaries paid to our major contractors or expenditure by our contractors, such as our catering contractor, who predominately source food from South Australia.

The breakdown of 2012 expenditure by origin is provided in the chart on the right of this page. For more information on local employment, local businesses, community investment and training, see the ‘Our people’ section of this report.

CONTRIBUTIONS TO LOCAL ECONOMIES


ECONOMIC PERFORMANCE > CONTRIBUTIONS TO LOCAL ECONOMIES continued

ECONOMIC VALUE GENERATED AND DISTRIBUTED for year ended 31 December 2012 (for continuing operations) All amounts in A$ millions

Payments to providers of capital

Payments to the government

Region

Revenue, other

income and financing

incomeA$m(b)

Operating expenses

A$m(c)

Employee benefit

expenses A$m(d)

Shareholders A$m(e)

Providers of funds

A$m(f)

Income taxes paid

A$m(g)

Royalties A$m(h)

Community investments

A$m(i)

Economic value

retainedA$m

South Australia(a) 987.3 (486.4) (59.1) 0.0 (1.3) 0.0 (14.8) (0.5) 425.2

Victoria(a) 29.8 (97.2) (20.1) (225.7) (2.3) (6.5) 0.0 (0.2) (322.2)

Total Australia 1,017.1 (583.6) (79.2) (225.7) (3.6) (6.5) (14.8) (0.7) 103.0

Cambodia 18.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 18.8

Other 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Total Overseas 18.8 0.0 0.0 0.0 0.0 0.0 0.0 0.0 18.8

Total OZ Minerals 1,035.9 (583.6) (79.2) (225.7) (3.6) (6.5) (14.8) (0.7) 121.8

Notes(a) Amounts are divided into the regions identified below based on where the segment is located (i.e. Prominent Hill is located in South Australia).

The regions include the following entities: Victoria All Corporate Office entities South Australia Prominent Hill Mine, Carrapateena The entities located outside Australia are not defined as operating segments of OZ Minerals.(b) Revenue includes sales adjusted for discounts, treatment charges, refining and distribution costs, other income and financing income as disclosed

in the income statement in the OZ Minerals audited financial statements for the year ended 31 December 2012, as reconciled below. $m Revenue 985.7 Other income 7.9 Income from sale of assets in Cambodia 18.8 Financing income 23.5 Total 1,035.9(c) Operating expenses include changes in inventories, raw materials, consumables and other direct costs, contracting and consulting expenses, freight

expenses, community investment and other expenses as disclosed in the income statement of the OZ Minerals audited financial statements for the year ended 31 December 2012.

$m Changes inventories (36.7) Raw materials (319.2) Exploration and evaluation (114.1) Freight expenses (47.4) Net foreign exchange loss (11.3) Other expenses* (55.6) Total (584.3)

*Included in other expenses are Toro loss, intersegment income/expense and other operating expenses such as general administration.(d) Employee benefit expenses of $79.2 million are as per the consolidated income statement of the OZ Minerals audited financial statements

for the year ended 31 December 2012.(e) Payments to shareholders relates to dividend payments of $124.6 million, share buyback of $100.1 million and acquisition of treasury share

of $1.0 million.(f) Payments to providers of funds relates to financing expenses of $3.6 million as per the income statement in the OZ Minerals audited financial

statements for the year ended 31 December 2012.(g) OZ Minerals recouped tax losses, recognised deferred tax liabilities and paid tax of $6.5 million in 2012.(h) Royalty expenses of $14.8 million as per the income statement in the OZ Minerals audited financial statements for the year ended 31 December 2012.(i) Community investments of $0.7 million includes voluntary contributions, sponsorships, donations, education and training.


SOCIAL

Our achievements and future are driven by our ability

to attract and retain the highest calibre people. We encourage

all of our employees to continually build on their skills and

knowledge to help them perform to the best of their ability.

OUR PEOPLE

We believe the skills, knowledge and continued engagement of our employees and contractors are essential to OZ Minerals.

In 2012, we continued our commitment of employing locally and providing employment opportunities for people in our local communities. Around 80 percent of our employees live in South Australia.

At the close of 2012, our workforce including contractors was approximately 1,700, with approximately 1,500 based at Prominent Hill. Our Carrapateena project team expanded to around 150 people, including contractors during 2012. OZ Minerals directly employs approximately 460 people, with the majority based at Prominent Hill. We have a corporate office in Melbourne and an office that supports Prominent Hill in Adelaide.

WORKFORCE PROFILE AND DIVERSITY

OZ Minerals is committed to sustaining an organisational culture in which diversity is both appreciated and expected by all of our employees. We strongly believe that fostering a diverse workforce results in a better workplace for our employees and leads to a better company overall. There are around 170 Aboriginal employees at our Prominent Hill operation.

Women comprise approximately 24 percent of the workforce directly employed by OZ Minerals and 18 percent of employees at the Prominent Hill mine site. We are continuing to encourage greater female representation; however, this compares well to the industry average of 14 percent and a lower percentage based at mine sites. Our gender representation across each of our job bands is presented in the figure below.

We recognise that an important aspect of promoting gender diversity is to provide opportunities for women to move into key decision-making roles within the business. We have implemented training and development programs targeted for our high-performing women, particularly those within our middle management group, which has the lowest female representation. For more information, see the ‘Leading My Career’ case study.


100

90

80

70

60

50

40

30

20

10

0

100

90

80

70

60

50

40

30

20

10

0

JOB B

AND A

(indivi

dual co

ntributo

rs)

JOB B

AND B

(terti

ary/s

upervis

ors)

JOB B

AND C

(super

inte

ndents/

senio

r spec

ialist

s)

JOB B

AND D

(dep

artm

enta

l man

ager

s)

JOB B

AND E/F

(functi

onal lea

dersh

ip)

JOB B

AND A

(indivi

dual co

ntributo

rs)

JOB B

AND B

(terti

ary/s

upervis

ors)

JOB B

AND C

(super

inte

ndents/

senio

r spec

ialist

s)

JOB B

AND D

(dep

artm

enta

l man

ager

s)

JOB B

AND E/F

(functi

onal lea

dersh

ip)

* 2011 statistics have been restated in line with new methodology. For more information, see the GRI index under disclosure ‘Report Parameters 3.10’.

Gender Representation across Job Bands

%2011*

Male

Female%2012

7624

6931

8614

8515

6040

7525

7426 84

16

8020

6733

SOCIAL > OUR PEOPLE continued

Cross cultural awareness

OZ Minerals runs a two-day cross cultural awareness program for all Prominent Hill employees, including contractors. The program is run by traditional owners of the land, the Antakarinja Aboriginal group. It focuses on educating people about Aboriginal culture, particularly Antakarinja culture, including their beliefs, connection to the land and areas of cultural significance, as well as looking at Aboriginal ways of life and challenges that persist. The program has been an important part of creating an inclusive, supportive culture at Prominent Hill.

We are seeking to establish a similar program with the native title claimant group at Carrapateena.


OZ Minerals Turnover Rate

2011

*20

12*

Leaving employment (%)

Females leaving

Females retained Males retained

Males leaving

100

90

80

70

60

50

40

30

20

10

091.78.3

86.513.5 91.3

8.793.26.8

* 2011 statistics have been restated in line with new methodology. For more information, see the GRI index under disclosure ‘Report Parameters 3.10’.


ATTRACTION, RETENTION AND ENGAGEMENT

Attraction, retention and engagement of our employees are essential for OZ Minerals’ growth strategy.

A number of new roles have developed with the commencement of drilling at Carrapateena and the continued development of our underground mine at Prominent Hill. These developments have provided new opportunities for existing employees, including opportunities in both underground and open pit mining.

We have a strong focus on employing graduates and attracting the best and the brightest into the business. We maintain positive relationships with tertiary institutions, particularly those in South Australia. In 2012, 13 university graduates and vacation students began their careers at OZ Minerals.

We offer services and benefits to all permanent full-time and part-time employees. These benefits include market competitive remuneration, performance related rights and short-term incentives, salary sacrifice superannuation, novated leases, paid parental leave and family site visits. We also, where possible, accommodate flexible working hours, part-time work and telecommuting.

OZ Minerals offers equal remuneration for all our employees, commensurate with an individual’s role, responsibilities and level of experience, and we review this annually across OZ Minerals. We conduct annual internal reviews to provide assurance that our employees’ remuneration remains equitable and in line with market data trends.

OZ Minerals conducts exit interviews with all outgoing staff to understand the reasons that people choose to leave and to help formulate our retention initiatives.

TRAINING AND DEVELOPMENT

OZ Minerals offers a wide spectrum of development opportunities, including formal programs, technical and compliance training, online learning and mentoring.

The types of training and development opportunities that we offer are linked to yearly personal development plans created for each employee. Our formal programs are designed to address key skills gaps and invest in the long-term development of our greatest talent.

In 2012, we implemented a diverse array of professional development courses offered to all of our employees. These courses were tailored to address the most common needs of our employees, including ‘soft’ and technical skills, and were conducted by leading training providers in these areas. The Professional Development Program provides OZ Minerals employees with the opportunity to further develop in their role. Over half of OZ Minerals’ employees participated in one or more of the 24 programs that were held during the year.

OZ Minerals recognises that the impact of leadership on employee engagement and retention is not just at our senior management level, but also at our supervisor and superintendent levels. As such, we have developed a program at Prominent Hill specifically targeting these levels. Employees can gain formal accreditation for a Certificate IV in Frontline Management.

OZ Minerals was awarded the 2012 South Australian Premier’s Social Inclusion Award in recognition of our commitment to providing training and support services to socially and economically disadvantaged members of South Australia.

CASE STUDY > ‘LEADING MY CAREER’

In 2012, OZ Minerals implemented a career development program for high-performing females entitled ‘Leading My Career’ in partnership with Beach Energy Limited, an Adelaide-based oil and gas company.

Leading My Career focuses on providing strategic training and development opportunities to assist female employees to articulate and achieve their career goals.

A key aspect of Leading My Career involves forming mentoring partnerships between participants and senior executives from the reciprocal organisation. Mentors of the program included OZ Minerals’ Directors and Beach Energy’s Chief Financial Officer and Company Secretary. The mentoring partnerships allowed participants to seek advice and guidance from experienced professionals as well as extend their professional networks.

Leading My Career has assisted OZ Minerals in working towards achieving its diversity goals of increasing female representation across all levels of the organisation by increasing the profile of women within both organisations and providing a platform for women to openly discuss their career goals with their managers.

A total of 14 participants across both organisations participated in the Leading My Career program. It is anticipated that Leading My Career will continue in 2013 with a new cohort of participants with participation from a third company.



CASE STUDY > PRE-EMPLOYMENT TRAINING PROGRAM

OZ Minerals is committed to ensuring local people are able to gain access to employment opportunities. One way of achieving this is through the innovative Pre-Employment Training Program.

The Pre-Employment Training Program provides an opportunity for local and Aboriginal people to gain work experience, a nationally recognised Certificate II in Surface Extraction and guaranteed employment at the Prominent Hill operation.

The eighth Pre-Employment Training Program was undertaken in 2012, with nine local people from Coober Pedy and Oodnadatta successfully graduating the program.

Students completed 17 weeks of training through the Coober Pedy campus of TAFE South Australia, covering general topics, including occupational health and safety, computer skills and first aid, as well as more specific training, such as light vehicle operation and working at heights. To supplement this learning, students also participated in a series of work experience placements at Prominent Hill.

Graduates have now moved into the OZ Minerals Pathways into Mining Program, where they undertake a series of three-month rotations across the Prominent Hill operation as part of transitioning to a permanent position. Job rotations are based across a number of OZ Minerals’ departments, as well as with major contractors.

The Pre-Employment Training Program is designed and supported by ongoing partnerships with government and non-government providers.

Since the launch of the Program in 2006, eight groups of trainees, including 68 successful graduates, have successfully completed the program and taken up permanent roles at Prominent Hill. The graduates come from the local towns of Coober Pedy, Port Augusta, Oodnadatta, Port Pirie and the APY Lands.

CASE STUDY > LANGUAGE, LITERACY AND NUMERACY PROGRAM

OZ Minerals runs an ongoing Language, Literacy and Numeracy (LLN) Program to assist skill development for employees with low levels of literacy and numeracy.

The program involves one on one coaching, and the learning outcomes are individually tailored to meet personal requirements. A core focus is building on existing skills to achieve short and long-term goals, including both professional and personal objectives. This program has had great success in assisting people to effectively plan for their lives, such as saving for a home and putting aside money for the education of children.

By enabling employees to improve their literacy and numeracy skills, OZ Minerals is ensuring workers have transferable skills that will enhance their employability and assist the long-term sustainability of local communities.

Approximately 50 employees were enrolled in the program in 2012.

CASE STUDY > MINING ENGINEERING STUDENT VISIT

During September 2012, OZ Minerals hosted two field trips for 120 first-year mining engineering and geology students from the University of Adelaide.

For most students, this marked their first visit to a mine site, presenting an ideal introduction to an operating mine site at the beginning of their career.

Each field trip consists of a three-day visit to the Prominent Hill copper gold mine, where students were able to gain a greater understanding of the mining industry by living and working on a remote mine site.

During the visit, students toured the operation and participated in presentations on technical mining aspects covering the main areas of exploration, mining and processing. A key aspect of the experience was the ability for students to ask questions to senior mining professionals.

As the Prominent Hill operation consists of both an open pit and underground mine, students were able to compare and contrast the techniques particular to two major types of mining operations at a single location.

OZ Minerals hosts university field trips to assist in promoting mining to a new generation of talent. By providing a hands-on experience, students are able to gain an insight into the opportunities that are available for their future careers.



LABOUR RELATIONS AND HUMAN RIGHTS

OZ Minerals has a strong record in labour relations and continually acts to maintain harmonious relations with all employees, contractors and their representatives. Our labour relations are in line with relevant employment legislation.

We have established forums and communication processes that facilitate effective communication and have developed strong relationships with relevant unions and external parties. During 2012, OZ Minerals had no incidents of industrial unrest, strikes or lockouts.

OZ Minerals’ employees are on a mix of collective and individual employment arrangements. Our Harassment, Discrimination and Bullying Policy recognises that whatever arrangement an employee has, we recognise the right of our employees to freely associate and join trade unions. In 2012, approximately 42 percent of our eligible workforce was covered by a collective agreement. This agreement was renegotiated for the period between 2011 and 2015.

OZ Minerals’ Harassment, Discrimination and Bullying Policy outlines our process for reporting of discrimination incidents. OZ Minerals takes reports of discrimination seriously. OZ Minerals aims to provide opportunity and equality for all employees and a workplace that is free from harassment and unlawful discrimination.

OZ Minerals’ human rights standard is in place at OZ Minerals managed facilities, across all phases of the mine life cycle, ensuring that we have processes for raising human rights awareness, including identification of human rights issues and impacts. OZ Minerals upholds, understands and promotes fundamental human rights within our sphere of influence.

OZ Minerals does not employ forced, bonded or child labour, and supports the elimination of child and forced and compulsory labour. A minimum age of 18 is a requirement of obtaining full-time work at OZ Minerals and 16 for part-time or casual work. Exceptions are made for apprentices or trainees under regulated raining schemes.

EMPLOYEE COMMUNICATION AND FEEDBACK

We believe that it is essential that we continue to engage with our employees by ensuring they receive frequent information regarding the activities of OZ Minerals. We use a range of formal communication methods, including daily pre-shift briefings, weekly CEO letters, CEO briefings, monthly newsletters, staff gatherings, group emails, regular communication forums and an intranet.

We use formal communication tools such as post-recruitment surveys, development plans, performance reviews and exit interviews.

We also encourage our employees to provide open and honest feedback, both formally and informally.

In 2012, OZ Minerals completed an Employee Opinion Survey across employees and contractors. For more information, see the case study ‘Employee Opinion Survey’.

CASE STUDY > EMPLOYEE OPINION SURVEY

In 2012, OZ Minerals conducted an Employee Opinion Survey to gain a better understanding of what aspects are working well and what areas we can improve across OZ Minerals.

The survey had a very high response rate, with 71 percent of employees and 37 percent of contractors completing the survey.

The survey results were very positive and consistently in line with the best practice range for organisations.

OZ Minerals’ employees and contractors had very similar responses to the survey, which shows that we are on the right track in creating and sustaining the right sort of ‘one site’ culture.

Our most positive results highlighted our strong safety culture and the commitment of our employees to the success of OZ Minerals.


SOCIAL

Our first priority at OZ Minerals is to ensure the health, safety and wellbeing of our workforce. We are committed to achieving Zero Harm by Choice, which requires us to adopt operational targets of zero for injuries and incidents.

We have achieved sustained positive improvements in our safety performance through our holistic approach to health and safety management. We actively embed a strong safety culture across all of our operations so that all of our employees and contractors are empowered to take control of their own safety, as well as that of their colleagues. Our health and safety management is complemented with a number of initiatives to improve safety awareness and behaviour across our workforce.

SAFETY PERFORMANCE AND MANAGEMENT

We report safety statistics for our entire workforce, including all contractors operating on OZ Minerals controlled sites. We believe this is an important part of instilling a strong ‘one site’ culture, which encourages positive safety behaviour.

In 2012, we continued to achieve a significant improvement in safety performance. Our Total Recordable Injury Frequency Rate (TRIFR) per million hours worked was 10.49, compared with 19.73 in 2011. The 2012 Lost Time Injury Frequency Rate (LTIFR) was 1.46, compared with 1.50 in 2011. We have targets to drive continuous improvement in our safety performance.

We believe that it is better to encourage people to report incidents and get medical treatment than to leave incidents unreported. Strains and sprains make up a significant proportion of our recordable injuries. We had no major disabling injuries in 2012.

We analyse all of our safety risks with the priority of eliminating them or controlling them as best as reasonably practical. Any incidents that do occur are thoroughly investigated so that we understand the root cause and other contributing factors so that we can prevent them from reoccurring.

As a proactive management strategy, we monitor lead indicators to reduce workplace hazards and injuries. Each area of the operation has its own set of lead indicators that are measured monthly. Potential and actual significant safety incidents are thoroughly investigated using the Incident Cause Analysis Method. We regularly review our incidents to ensure we learn from these events and implement additional controls where necessary.

SAFETY AND HEALTH

19.73

1.50

10.49

1.46

OZ Minerals Lost Time and Total Recordable Injury Frequency Rate Per million hours worked

2011

2012

Frequency Rate

25

20

15

10

5

013.5

TRIFR

LTIFR

HEALTH PERFORMANCE AND MANAGEMENT

We endeavour to control occupational exposures to levels that minimise occupational disease and health risk. Exposure to dust, noise and heat are the greatest risks to the health and wellbeing of our employees at Prominent Hill, Carrapateena and our exploration projects.

To reduce occupational hazards to an acceptable level, control measures are used in all areas where occupational exposures are likely to be at or above guideline levels. Our priority is to eliminate, isolate or engineer our hazards. An additional control is the mandatory use of Personal Protective Equipment (PPE).

We conduct an extensive formal monitoring program across Prominent Hill for occupational exposures, including noise, dust, silica, copper, mineral fibres, radiation and lead in every area of the operation that has a potential for exposure. Lead is used as part of a laboratory process to determine the quantity of copper in our concentrate. The laboratory is the only area of the operation where there is exposure to lead.

In 2012, the World Health Organization stated that diesel particulates are considered to be carcinogenic. Diesel particulates have been incorporated into our occupational hygiene monitoring across our underground operation and workshops across the site. We use a conservative approach to the acceptable level of diesel emissions and ensure control measures are in place to prevent exposure.


SOCIAL > SAFETY AND HEALTH continued

HEALTH PERFORMANCE AND MANAGEMENT continued

In 2012, we completed a 15-month personal monitoring program as an extension to our routine static occupational hygiene monitoring program. This has enabled us to gather detailed information of actual worker exposure to airborne contaminants among different workgroups and determine the average worker exposure over the working period.

We commenced a second baseline personal monitoring strategy in October 2012, which incorporates monitoring for diesel particulate in the underground operations and workshops across Prominent Hill.

We implement control measures in all areas where occupational exposures are likely to be at or above guideline levels, including the mandatory use of PPE, water suppression, good housekeeping and hygiene practices, and maintenance of vehicle cabin seals.

We report any exceedances above regulatory limits and ensure controls are in place to reduce the exposure of the workforce to acceptable limits.

A hygiene monitoring program has been established at Carrapateena tailored to relevant occupational exposures.

There were no cases of occupational disease at our operations in 2012.

SAFETY AND HEALTH COMMUNICATION

Each OZ Minerals operation has a safety and health committee to ensure safety and health matters remain a priority. The committee is composed of elected members and nominated management representatives, and represents all sections of the workforce. Committee meetings are held regularly and are attended by contractors and OZ Minerals personnel. The committees’ functions include the provision of safety and health leadership, hazard and risk identification, inspections, and suggestions for amendments to standards and improvement issues.

Each department at Prominent Hill engages the workforce in daily Pre-Start Information (PSI) meetings. These meetings provide an opportunity to discuss safety related information from the previous shift, along with upcoming safety information. A daily PSI newsletter is produced detailing all hazards and events recorded in the past 24 hours. Other reports of events and hazards are generated on a daily, weekly and monthly basis.

Regular safety and health meetings are held at OZ Minerals’ operations to discuss relevant safety and health topics, such as heat stress, occupational disease risk, hazard awareness identification and fire safety awareness. Issues raised from site management meetings are cascaded down to be discussed at weekly meetings, and issues raised by the workforce cascade back to management.

CASE STUDY > PEER OBSERVATION PROGRAM

In 2011, OZ Minerals commenced a behavioural based safety program to improve safety behaviour. Our Peer Observation Program provides our workforce with the tools to approach each other in a constructive way, to have a conversation about the task that the person is performing and to identify ways to make it safer. These are known as safety observations.

While the program is supported by management, the program’s strength lies in its ability to empower the workforce to take proactive steps to drive positive safety behaviour.

Approximately 10 percent of the Prominent Hill workforce, including contractors, are trained as employee Peer Observers. The Peer Observation Program has been successful in eliminating at-risk behaviours that have previously caused injuries and incidents. In its first year, the program has facilitated 1,350 observations, leading to the identification and removal of 76 barriers to safe work.



CASE STUDY > CULTURE DEVELOPMENT STRATEGY

OZ Minerals developed and implemented a Culture Development Strategy in collaboration with our contracting partners across the Prominent Hill operation.

The Culture Development Strategy enables management to improve safety performance in a sustainable manner across Prominent Hill’s work areas, departments and organisations. The strategy was developed in recognition that consistent positive safety performance is achieved through a variety of organisational factors in addition to direct safety management.

A self-analysis tool is used to assess performance across eight key focus areas, including Critical Risk Management, People Development, Employee Leader Engagement, Peer Observation Program, Fair Culture, Roles and Accountabilities, Incident Management and Business Improvement. These represent the major components that are required to build and maintain an effective organisational culture at Prominent Hill. The strategy promotes a ‘one site’ culture by providing key milestones in developing consistent safety management, leadership, individual behaviour and safe workplaces.

A framework is provided to allow employee and contractor management to understand their organisation’s culture in detail and implement definitive plans to develop weaker aspects. Following the first phase implementation of the strategy through the baseline assessment, implementation will be managed through quarterly tracking. The progress of the strategy will form a standing item in our monthly management meetings with our contracting partners.

OUR OVERALL GOAL: SUPERIOR SAFETY PERFORMANCE

ZERO HARM BY CHOICE

SAFE BEHAVIOURS SAFE WORKPLACE RISK MANAGEMENT LEADERSHIP

RESPECT INTEGRITY ACTION RESULTS

PEOPLEDEVELOPMENT

ROLES ANDACCOUNTABILITIES

CRITICAL RISK MANAGEMENT

EMPLOYEE LEADERENGAGEMENT

PEER OBSERVATIONPROGRAM

INCIDENTMANAGEMENT

FAIRCULTURE

BUSINESSIMPROVEMENT



CRISIS MANAGEMENT

A crisis is defined as an event that seriously threatens OZ Minerals’ people, operations, assets, environment or long-term prospects and reputation.

Our crisis management plan outlines the roles, responsibilities and processes that the corporate Crisis Management Team would follow in the event of a crisis occurring. The team includes representatives covering operations, legal, commercial, safety, environment, community, media, investors and government relations.

Emergency Response Team

The Emergency Response Team (ERT) at Prominent Hill is equipped to successfully respond to all emergency incidents.

The ERT members are trained to respond to a number of incidents, including injuries, fires, mass casualty, heights rescue and vehicle rescue. They are also able to respond to incidents in the local community as far away as Coober Pedy.

In 2012, the ERT comprised 40 people, including employees from the OZ Minerals and contractor workforce. The ERT consists of one permanent Emergency Response Coordinator, four full-time Emergency Service Officers, two full-time registered nurses and a crew of trained volunteer Emergency Officers that cover all shifts. The ERT members volunteer their own time for training and practice and are also on standby while they are on site.

The team responded to 117 incidents this year. The involvement of the ERT greatly contributed to the successful resolution of the incidents, including stabilising and treating injured persons prior to evacuation.

A two-day Emergency Response exercise was conducted at Prominent Hill involving a combination of scenarios and workshop exercises. Twenty people were involved in the training and the event was facilitated by external crisis management specialists.

The major scenario involved a vehicle fire in the decline of the Ankata Mine and three missing people. The leaders of the Emergency Management Team during the scenario were those in second-in-charge positions to provide experience to those that would form the EMT in the event managers are not on site during a crisis.

The first emergency response exercise was conducted at Carrapateena in 2012. The emergency response arrangements will expand as required in line with the size of the workforce and infrastructure development.


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STAKEHOLDER ENGAGEMENTStakeholder engagement summary

We aim to build trusting relationships by engaging clearly, openly and honestly with our host communities and other key stakeholders.

The way we approach and communicate with our stakeholders is detailed in the OZ Minerals External Stakeholder Engagement and Reporting Standard, which details how we identify stakeholders and proactively engage with them.

OZ Minerals’ stakeholders include a wide range of individuals and groups that directly or indirectly support, influence or are impacted by our activities. Key stakeholders include contractors, customers, employees, financial institutions, governments, local communities, shareholders and suppliers.

The stakeholder engagement summary details our key stakeholders, provides an overview of their interests and concerns, and describes how OZ Minerals engages with them.

Stakeholder group Stakeholders Interests and concerns Engagement

Business partners Joint venture partners. Exploration projects, business development, financial returns, growth, governance, risk management, political and socio-economic risk.

Regular update meetings with joint venture partners.

Customers Smelters, refiners and downstream copper products fabricators.

Product quality, price, reliability of supply, timely delivery of monthly orders.

Regular formal and informal communication with marketing department staff. Personal visits by marketing department and process management staff. Site visits to customers’ plants and customers’ representatives encouraged to visit OZ Minerals’ operations.

Employees Employees. A wide variety of interests and concerns.

Regular communication with staff through presentations and discussions, an intranet, email alerts, hard copy newsletters and ‘noticeboard items’.

Governments Local, provincial/state and national regulators, government agencies and diplomatic corps.

Regulatory compliance, land use, ESIAs, access permits, mining leases, licences, closure provisions and plans, product stewardship, environmental performance, community relations, socio-economic benefits.

Regular formal and informal communications with external relations, operational senior management and staff through site visits, meetings, events and reporting (including Annual and Sustainability Reports).

Industry associations Mining and minerals industry, commodity specific, national and international.

Representation of industry interests.

Representative on boards and committees, engagement on specific projects.

Investment community Mainstream brokers, financial analysts and fund managers, sustainability and ethical investment analysts, retail investment advisors, existing and potential shareholders, both domestically and internationally.

Financial returns, growth, governance, risk management.

Annual General Meeting, Annual and Sustainability Reports, Quarterly Report and shareholder summary, website where all releases and other information on OZ Minerals is maintained, direct phone contact with investor relations, presentations at industry conferences, briefings and site visits.

Local communities Individuals and groups local to our operations, including traditional landowners, local Aboriginal groups, agriculturalists/pastoralists, development groups, local businesses.

Employment, business development, infrastructure, land access, cultural heritage, sponsorship and donations, environmental performance, transparency.

Location-specific community relations plans, community meetings and groups, newsletters and targeted communications, Sustainability report and surveys.


SOCIAL > STAKEHOLDER ENGAGEMENT continued

Stakeholder group Stakeholders Interests and concerns Engagement

Media Print, radio, TV and interactive.

Financial and operational related queries.

Dedicated media relations function. Regular engagement with business and regional media through six teleconferences a year, regular ad-hoc one-on-one discussion, interviews and site visits.

Non-government organisations

Local, regional and international environmental, human rights, development, corporate social responsibility and sustainability organisations.

Governance, risk management, socio-economic contributions, human rights, environmental performance, compliance.

Liaise directly with operational management, environment and community relations departments on specific issues. Annual and Sustainability Reports, media releases, Sustainability Group and External Relations attendance at forums and policy discussions.

Shareholders Retail and Institutional shareholders.

Financial returns, growth, governance, risk management.

Annual General Meeting, Annual and Sustainability reports, quarterly report and shareholder summary, website, where all releases and other information on OZ Minerals is maintained and regularly updated, direct phone contact with investor relations.

Suppliers Local businesses to large international organisations.

Supply agreements, reliable payment processes, social and environmental requirements.

Regular meetings with commercial staff.

Other mining companies and academics

Other mining companies, mining regulators, industry associations and minerals industry academics.

Company updates, project information.

Papers and presentations given by executives at various industry related conferences.


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SOCIAL PERFORMANCE

COMMUNITY ENGAGEMENT

Our community engagement programs are centred close to our operations. As our main operating site, Prominent Hill has our most extensive engagement program.

Prominent Hill is located in a very isolated region in northern South Australia. Our closest town is Coober Pedy, located 130 kilometres away, and pastoralists located on nearby pastoralist stations.

We regularly engage with the pastoralist community, particularly in regard to water use. For more information, see Water Management in the Environment section of this report.

OZ Minerals is an active participant in two of the South Australian Arid Lands and Natural Resources Board district groups. The Board, working in partnership with local landholders, industry, government agencies and environmental and community interest groups, aims to facilitate an integrated approach to sustainable management of natural resources.

Representatives from the Prominent Hill community relations team present to the Coober Pedy Council each quarter and regularly meet with the Coober Pedy Area School. OZ Minerals held a series of meetings across our local communities in relation to the outcomes of our community Social Impact Assessment (SIA) conducted in 2011. Attendees included local pastoralists, local community members and relevant government representatives. These meetings provide the attendees with an opportunity to discuss areas of concern and common interest, and provide an opportunity for OZ Minerals to provide the community with an update on the Prominent Hill operation and exploration activities.

All identified activities through the SIA were completed. A key focus was ensuring that people from Coober Pedy and Oodnadatta were able to access employment opportunities. As part of this, we targeted our Pre-Employment Training Program to these communities to assist people without formal qualifications and work experience to gain entry into the mining industry. We continued our stakeholder engagement to discuss further opportunities for the community and OZ Minerals. We also contributed to the Coober Pedy Strategic Plan to enable us to work in partnership for our mutual goals.

As the Carrapateena exploration project develops, we are continuing to increase our engagement with the local community. In 2012, we held a series of community information sessions regarding the progress of the project and the types of opportunities that exist for local contracts and employment. Sessions were held in Port Augusta, Port Pirie, Woomera, Andamooka and Roxby Downs, as well as with local pastoralists. The sessions were well attended and there was a high sense of enthusiasm by the local community. We also held contractor workshops in Port Pirie and Port Augusta to provide information about the pre-qualification process for businesses. At the end of 2012, over 120 local businesses had requested pre-qualification and over 60 had successfully pre-qualified for contracts and services.

In 2012, we had no significant community incidents.

CULTURAL HERITAGE AND TRADITIONAL RIGHTS

OZ Minerals adheres to all relevant Australian Acts and regulations regarding local communities land and customary rights, including those of Aboriginal people. Native Title rights for the Antakarinja Aboriginal group were identified through the Native Title Agreement Act. Other pertinent legislation includes the Pastoral Land Act and the Mining Act. In 2012, there were no incidents or violations involving rights of Aboriginal people.

Any disturbances around culturally significant areas are reported internally and significant disturbances, such as unintended land clearances, are reported to the relevant authorities. In 2012, we were able to report no breaches in regard to disturbances of culturally significant areas.

Our Prominent Hill mine site is on the traditional lands of the Antakarinja Aboriginal community. An Antakarinja Matu-Yankunytjatjarra Aboriginal Corporation (AMYAC) ANZ Bank Trust fund has been developed to assist in the sustainable use of production payments. The trust includes an advisory council made up of representatives from the Antakarinja traditional owners. We regularly meet with representatives of this group in relation to the OZ Minerals funded Antakarinja Scholarship Disbursement Fund. This fund is ongoing and is opened twice a year to students for funds to assist them with their studies. Typically, funds are used to purchase books, laptops, uniforms, fees and for other educational expenses.

Production payments from Prominent Hill are paid into the fund and distributed into the community in areas such as education and cultural and community development. On an annual basis, we currently disperse a scholarship payment of $200,000 for a variety of educational expenses. This is administered by the scholarship sub-committee, on which OZ Minerals is represented. We have also contributed to an Accumulation Trust, of which an annual payment of $100,000 is held in trust for ten years. The interest component may be accessed after that period for ongoing education purposes. This is designed so OZ Minerals can continue to support future generations of the AMYAC Aboriginal community.

In early 2013, OZ Minerals entered into a Native Title Agreement with the Kokatha Uwankara people in respect to the Carrapateena retention lease.


SOCIAL > SOCIAL PERFORMANCE continued

COMMUNITY INVESTMENT, SPONSORSHIPS AND DONATIONS

One of our key sustainability objectives is to ensure that he communities in which we operate receive real benefit from our activities.

Our sponsorship guidelines were developed to prioritise sustainable projects. Our preference is for local organised initiatives that provide ongoing skill development and services, as well as projects that provide benefit for our local communities.

OZ Minerals has been a proud and ‘major’ partner of the Royal Flying Doctor Service since 2007 when the Prominent Hill mine was still in construction. As part of its ongoing partnership, OZ Minerals has provided an additional $300,000 over three years. The RFDS uses funds to purchase new aircraft and medical equipment. In recognition of its significant past and future financial support, the RFDS has badged one of its new flying intensive care units with the OZ Minerals logo, unveiled at Prominent Hill in March 2012. The RFDS conducts over 200 landings, an average of four times a week, in the remote communities surrounding Prominent Hill.

We provided funding to the School of the Air (SOTA) to support school camps for students. The School of the Air program provides education for remote and isolated students throughout South Australia, including children from our neighbouring pastoral stations. As their ‘classrooms’ cover vast distances, school camps are an important opportunity to allow students to meet each other face to face and enable them to participate in activities that metropolitan students regularly undertake.

OZ Minerals has an ongoing sponsorship of the Remote and Isolated Children’s Exercise Inc. (RICE), a community managed organisation that assists the health, welfare and education of outback families with young children. We have a sponsorship of $20,000 per year for three years, enabling RICE to confidently deliver programs that increase community connection. Our sponsorship has enabled RICE to almost double the amount of children’s activity fun days they hold during the year.

In March 2012, 140 family members of the Prominent Hill workforce travelled to the mine site for Family Day. Family members came from Adelaide and Port Augusta for the opportunity to share the experience of life on a mine site and participate in a tour of the processing plant and of the open pit. Entertainment was provided by

Adelaide based singer and songwriter Louis Fuller and guests were able to use some of the recreational facilities at the Prominent Hill village.

OZ Minerals sponsors a range of local events, including gymkhanas, sporting teams, school programs, industry evenings and conferences around the Prominent Hill region. In 2012, we supported the third annual OZ Minerals Copper Sculpture Award as part of the South Australian Living Arts (SALA) Festival.

Our total sponsorship of local organisations and programs for 2012 was approximately $280,000.

CASE STUDY > OZ MINERALS COPPER SCULPTURE AWARD

OZ Minerals continued its partnership with the South Australian Living Arts (SALA) Festival with the third OZ Minerals Copper Sculpture Award. The award enables local artists to create art with copper and build on their skills and reputation as an artist.

The award is similar to a commission. South Australian artists are given the opportunity to submit a proposal of their idea and apply for financial assistance for material and production costs to create an original artwork out of copper. Artists are then able to sell their works after the SALA Festival.

The 2011 recipient for the OZ Minerals Copper Sculpture Award is Adelaide based artist Mei Sheong Wong.

Inspired by a previous opportunity to tour a South Australian mine, Mei created a series of etchings onto copper sheets that detailed aspects of OZ Minerals’ Prominent Hill operation, including personnel, infrastructure, equipment and the surrounding desert landscape.

Mei had the unique opportunity to spend a week as an ‘artist in residence’ at Prominent Hill in December 2011, enabling her to experience first-hand life at a working mine site. Mei spoke to employees at Prominent Hill about their experiences before sketching their portraits and surrounding environments.

This year’s winner of the OZ Minerals Copper Sculpture Award is Nicholas Uhlmann. Nicholas has proposed to create a large-scale mobile sculpture using perforated copper sheet – a contemporary design that will use copper to display a range of textures and reflections of circular shell-like shapes. Nicholas will have until the start of the 2013 SALA Festival in which to complete his artwork.


SOCIAL > SOCIAL PERFORMANCE continued

CASE STUDY > SOUTH AUSTRALIAN SCIENCE TEACHERS VISIT PROMINENT HILL

In November 2012, OZ Minerals hosted a group of eighteen South Australian secondary school science teachers at the Prominent Hill operation.

The teachers experienced what life on a working mine site is really like. During their time on site, teachers ate in the communal dining hall, explored the village accommodation and sporting facilities, toured the open pit and processing plant – while getting a better understanding of how a working mine makes something valuable from digging rock out of the ground.

The focus of the visit was to give the teachers the opportunity to learn more about earth and environmental science and how science is applied in the industry. These subjects form an important part of the new Australian science curriculum and are typically harder to teach for those who have not previously studied them in detail.

By seeing the operation and talking to experts, the teachers are then better equipped to go back to the classroom and describe to students real applications of what they teach.

The visit was part of an in-kind sponsorship with TESEP, the Teacher Earth Science Education Programme. TESEP offers a range of resources, workshops and initiatives to science teachers to enable more effective teaching of earth and environmental science.

LOCAL BUSINESS SUPPORT

OZ Minerals supports development of local businesses directly through contracts for mine-related services, mentoring and training initiatives. Indirectly, our operations support local businesses through preferential purchase of local goods and services.

We ensure that our pre-selection processes in selecting local vendors are transparent, and we conduct awareness programs with small, local suppliers to highlight opportunities. These proactive steps are detailed in our Local Employment and Procurement Social Standard. We regularly assess progress in this area.

In 2012, over 20 local businesses were employed at Prominent Hill or provided goods and services. An additional 20 local businesses have benefited from activities conducted for our Carrapateena project.


ENVIRONMENTAL PERFORMANCE

OZ Minerals remains committed to minimising our impact on

the environment by using natural resources efficiently. We maintained

effective environmental management during 2012.

ENVIRONMENTAL PERFORMANCEA number of projects progressed in 2012 targeting our energy and water use efficiency, which are a part of our participation in the Energy Efficiency Opportunities (EEO) Program. Further details can be found in the Energy Consumption and Greenhouse section of this report.

All environmental incidents and near misses are reported through our incident reporting systems. Investigations are then undertaken to determine the underlying cause in order to eliminate the potential for future failures and to apply effective controls company-wide. Significant environmental incidents are defined as any occurrence within OZ Minerals’ operational control that has resulted in, or had the potential to cause, at least moderate environmental impact. This year, there were no significant environmental incidents.

In late December 2011, a Genesee & Wyoming Australia (GWA) owned and operated train derailed near Edith River while carrying OZ Minerals’ copper concentrate. For more information, see the Transport of Prominent Hill Concentrates section of this report.

ENVIRONMENTAL PERFORMANCE SUMMARY

Indicator Performance1

Significant (Level 3 or 4) or reportable environmental incidents2

0

Spills or discharges3 0

Regulatory environmental non-compliances4 15

Fines and prosecutions – environment 0

Energy use (2012) in gigajoules 3,661,636

Total greenhouse gas emissions (2012) (CO2 equivalent emissions)

375,802

Water input (megalitres) 6,566

Water discharged off site (megalitres) 0

Waste rock mined (tonnes) 87,803,022

Tailings produced (tonnes) 9,445,970

Hazardous waste generated (tonnes) 675

Total land holding (hectares) 700,000

Footprint (hectares) 3,556

Land disturbance (hectares) 18

Land rehabilitation (hectares) 50

1 Covers an overall ‘reporting period’ that includes Prominent Hill and Carrapateena from 1 January to 31 December.

2 Level 3 and 4 significant incidents are internally classified as those that cause or have the potential to cause moderate to major environmental impact within OZ Minerals’ operational control.

3 Incidents that typically involve the loss from containment of poor quality mine water or a hazardous chemical or fuel, internally classified as a level 3 or 4 significant incident.

4 Incidents that, among other consequences, also result in a legal requirement to report to a regulatory authority.

5 As detailed in our annual compliance report for Prominent Hill, four pastoral wells have declined below agreed limits. Investigations have begun to understand the compliance exceedance, and discussions with the affected pastoral leaseholder are continuing to agree upon a long-term water management strategy. There has been a limited effect on the regional groundwater and there has been no recordable effect on the Great Artesian Basin.



We actively monitor and analyse our energy consumption and greenhouse gas emissions, which are independently verified and publicly reported. We are participants in the Australian Government National Greenhouse and Energy Reporting Scheme (NGERS), the Energy Efficiencies Opportunities (EEO) Program and the Carbon Disclosure Program. Public reports covering these programs are publically available through the corresponding websites.

The majority of OZ Minerals’ energy use occurs at our Prominent Hill operation. Our two main areas of energy consumption are our plant, which utilises electricity from the main grid, and the diesel that we use to operate mining vehicles. In line with our mine plan for Prominent Hill, our activities increased during 2012, leading to a corresponding increase in energy use and greenhouse gas emissions.

In 2012, we generated approximately 375,000 tonnes of carbon dioxide equivalent emissions, predominantly at Prominent Hill. While the majority of our energy is sourced from diesel, most greenhouse gas emissions are derived from electricity use. This is due to the higher emissions intensity of electricity compared with diesel.

Total energy consumption January – December 2012 (GJ)

Energy (GJ) Prominent Hill Carrapateena

Group Office Total

On-site consumption of fuels 2,585,137 38,422 0 2,623,559

Purchased electricity 1,037,046 0 1,031 1,038,077

Total 3,622,183 38,422 1,031 3,661,636

Total direct and indirect greenhouse gas emissions January – December 2012 (CO2-e t)

Greenhouse gas emissions (CO2-e t) Prominent Hill Carrapateena

Group Office Total

Scope 11 178,637 5,346 0 183,983

Scope 22 191,473 0 3463 191,819

Total 370,110 5,346 346 375,802

1 Scope 1 refers to direct emissions resulting from the on-site combustion of fuels and explosives.

2 Scope 2 refers to indirect emissions resulting from the import of electricity from external parties; commonly the electricity grid.

3 Group office emissions has increased as office utilisation has increased.

ENERGY CONSUMPTION AND GREENHOUSE GAS EMISSIONS

CASE STUDY > LOW EMISSION DIESEL FUEL ALTERNATIVE

OZ Minerals is planning to implement low emission diesel fuel alternatives at the Prominent Hill operation in 2013.

In 2012, preliminary discussions and workshops were held with our diesel supplier to procure a diesel product that can deliver a fuel savings of up to three percent.

As diesel forms one of our largest energy sources, this poses a significant opportunity for energy efficiencies, a reduction in carbon dioxide emissions and associated cost savings.

The fuel type has a unique combination of additives that maintains engine performance and protects engines against corrosion.

As part of our strategy to increase fuel efficiency, OZ Minerals will undertake a comprehensive baseline assessment of our fuel consumption at the Prominent Hill operation in 2013.



AIR QUALITY MANAGEMENT WATER MANAGEMENT

Outside of greenhouse gas emissions, the main emission relevant to our operations is dust, generated by stockpiling, moving materials and from vehicles driving on unsealed surfaces. We use a range of control measures to reduce the amount of dust generated through our activities, including undertaking regular road maintenance and implementing speed restrictions. Recycled water is applied on frequently used roads to reduce dust creation.

We undertake systematic sampling of air quality in and around the Prominent Hill operation to understand our impacts on the environment. We measure the quantity of total suspended particulates and particles less than 10 parts per million, which is used as a leading indicator measure for occupational hygiene monitoring and control. From our comprehensive four years of sampling, we are able to verify that our air quality management is effective in preventing impact from the operation.

In 2012, an air quality baseline was established at Carrapateena. This involved undertaking monitoring from around the project area to as far away as the Sturt Highway and Woomera. A range of techniques were used, including real time dust tracking and passive deposition gauges, to establish detailed knowledge of the existing air quality prior to the potential development of the project.

Air quality is affected by the generation of sulphur and nitrogen oxides through the burning of fuels. Data for key air emissions from stationary and mobile sources are reported annually to the Australian Government’s National Pollutant Inventory (NPI) and are available for public viewing at www.npi.gov.au.

There are no ozone-depleting substances, persistent organic pollutants (POPs) or hazardous air pollutants (HAPs) produced at our sole operation, Prominent Hill. Air emissions by type and weight for Prominent Hill are provided in the table below.

Type1 NOx2 SOx

Volatile organic compounds (VOC)

Particulate matter

Stack and fugitive emissions

Tonnes 1,003 0.899 73.26 4,581.7 6,233.7

1 Data sourced from 2011–2012 NPI report.2 Calculation based on default data.

Water is used in most aspects of OZ Minerals’ operations, including exploration, mining and processing. The efficiency of water extraction and the containment of waste water are key aspects of operational performance.

Prominent Hill’s total water use during the reporting period was approximately 6,516 megalitres, sourced entirely from groundwater bores. Water is reused in several different stages during processing and is eventually discharged to the tailings storage facility. No water is discharged off site.

In 2012, the Prominent Hill numerical groundwater model was updated to include data collected throughout the year to provide greater confidence in future model predictions.

Situated in a location with a relatively low average annual rainfall of approximately 160 millimetres, Prominent Hill is dependent on the supply of groundwater to sustain its operation. Prominent Hill draws water from the Boorthanna Formation geological unit of the Arckaringa Basin. This groundwater system is separated from the Great Artesian Basin aquifer system that feeds the Great Artesian Basin springs, and no influence on these springs is expected. The operation well field is located approximately 20 to 40 kilometres south east of the mine and is operated under a miscellaneous purpose licence.

Our water management plan incorporates standard groundwater monitoring, as well as opportunistic sampling.

A key focus for OZ Minerals is our relationships with pastoralists, with respect to water use. Our operational well fields are located on nearby pastoral stations. In the majority of cases, the pastoralists draw water from a different, shallower aquifer than that used by the mine well field. We have a water sampling program to monitor water levels and quality in previously agreed pastoral bores on neighbouring stations. We continue to closely monitor the surrounding groundwater sources and report on our results to relevant stakeholders.

We have a limited effect on the regional groundwater from water extraction for our operation. There has been no recordable effect on the Great Artesian Basin. We have had ongoing concerns that one area of our well fields, also utilised by neighbouring pastoralists, is experiencing a reduction in water depth below specified limits. We are maintaining ongoing discussions with the pastoralist to determine a long-term water management strategy and undertaking investigations to better understand the hydrology of the specific area.

Parameter Prominent Hill1 Carrapateena2 Total

Water input 6,516ML 60ML 6,576ML

Water discharge off site 0 0 0

1 All water used at Prominent Hill is sourced from groundwater.2 Water at Carrapateena is sourced from dams, groundwater

and water cartage.



WASTE MANAGEMENTAll mineral and non-mineral wastes and waste water are managed in compliance with applicable laws and regulations, as well as in accordance with the OZ Minerals Sustainability Standards.

Non-mineral waste

The waste recycling station that was built in 2011 at the Prominent Hill operation became fully operational during 2012. This has enabled us to significantly reduce the amount of waste sent to landfill, as well as recycling stockpiled steel, cans, bottles and other materials on site.

We recycled approximately 300 tonnes of waste at Prominent Hill during the year. An additional 680 tonnes of waste, including oil, grease and vehicle batteries, were transported off site. Approximately 2,000 tonnes of non-hazardous waste was generated during the year, comprising mainly general waste, paper and timber.

All non-mineral waste generated at Carrapateena is transported off site.

Mineral waste

The largest forms of waste in mining operations are waste rock and tailings. At the Prominent Hill operation, waste is managed on site in disposal facilities in accordance with the OZ Minerals Waste Rock Management and Tailings management standards. These standards define the requirements for the management of waste rock and tailings to prevent environmental impacts, promote beneficial post-mining land uses and reduce post-mining rehabilitation and closure liability.

To prevent or minimise the potential environmental impacts associated with waste rock and tailings disposal, a range of strategies is implemented during project development and operations, including: – Geochemical characterisation of acid-generating materials. – Resource modelling. – Disposal of tailings into specially designed and engineered facilities.

– Linking operational planning to long-term closure management.

– The containment and treatment of mine waters to meet regulatory discharge criteria.

Over the reporting period, Prominent Hill produced approximately 87.8 million tonnes of waste rock, with approximately 27.6 million tonnes considered to be potentially acid forming.

Most of the waste rock generated is placed in rock dumps within the mining areas with a proportion of non-acid forming rock used for the construction of mine infrastructure, such as the tailings storage facility and roads.

We encapsulate potentially acid forming rock within the integrated waste landform stockpiles and prevent surface water runoff using physical control measures to prevent impact to the environment. To ensure our control measures are effective, we conduct ongoing monitoring of surface water to detect any potential changes in downstream surface water quality from baseline values, including metal concentrations and acidity.

In 2012, approximately 9.4 million tonnes of tailings were produced. All tailings are contained within the tailings storage facility.

Water sampling is conducted after heavy rainfall events at sites around the tailings storage facility and surrounding waste rock to ensure there is proper containment of heavy metals and acid generating rock material.

CASE STUDY > WASTE EFFICIENCY IN THE UNDERGROUND OPERATION

With the commencement of the Ankata underground mine at Prominent Hill, OZ Minerals has initiated a process to improve waste efficiency through the commencement of a paste backfill plant.

This plant produces a mixture of stabilised tailings, cement and sand to fill in mined areas, known as stopes, within the Ankata underground mine. The mixture is delivered into the stope where it hardens and sets to support the rock above and also to support itself when the adjoining stope is mined out.

This process increases the stability of the underground mine as new areas of the mine come into production. This process enables us to reduce the amount of tailings within the tailings storage facility, reducing the size of the walls and the cost of processing the underground ore.



LAND MANAGEMENT AND BIODIVERSITY

At Prominent Hill, we have a mining lease and exploration tenements. The total tenement area owned by OZ Minerals is 400,000 hectares (4,000 square kilometres), which includes a mine footprint of 3,556 hectares. In 2012, 18 hectares were disturbed for mining and excavation purposes, while 50 hectares were rehabilitated.

The area surrounding Prominent Hill is comprised of an arid lands ecosystem, primarily consisting of low lying saltbush vegetation. Prominent Hill experiences extreme temperatures and periodic rainfall. Common wildlife seen in the region around the mine includes kangaroos, snakes, lizards, birds of prey, as well as small mammal and bird species.

Flora and fauna monitoring is undertaken twice a year by external specialists to examine potential changes to the environment as a result of mining operations. The monitoring results continue to indicate mining activities have a minimal effect on the surrounding natural environment.

The Significant Environmental Benefit (SEB) offset area involves the ongoing protection of land within the Mount Eba Pastoral Lease. Through management of the SEB offset area, OZ Minerals aims to protect and enhance habitat for two bird species, the chestnut-breasted whiteface and the thick-billed grasswren (eastern subspecies). Both of these species are listed on the International Union for Conservation of Nature’s (IUCN) Red List of Threatened Species.

OZ Minerals uses a Biodiversity Management Plan (BMP) to effectively manage biodiversity and minimise adverse effects on flora and fauna throughout the mine life cycle. Our BMP details our strategy for effectively managing the local environment, including our commitments to improving local biodiversity through fox baiting and cat trapping, and ensuring any land clearance is effectively rehabilitated.

As part of our preparations for eventual mine closure, Prominent Hill has continued rehabilitation trials to determine the most suitable method of site rehabilitation.

A Biodiversity Management Plan has been developed for Carrapateena. This process identified local species of significance, including migratory bird species and the plains rat that have potential to be impacted by our activities. Our management plan describes the strategies we have put in place to minimise our impacts on these species and has been submitted with our Retention Lease application to the state government.


APPENDICES

GLOBAL REPORTING INITIATIVE

Our Sustainability Report focuses on issues that we consider to be of material significance to our sustainability performance. We have referred to the Global Reporting Initiative (GRI) G3.1 Reporting Guidelines as the main framework for our report preparation.

OZ Minerals elects to report against the GRI as a way for stakeholders to measure our organisational sustainability performance, covering environmental, human rights, labour practices, society, product responsibility and economic topics. The GRI provides stakeholders a universally applicable and comparable framework from which to understand disclosed information.

The OZ Minerals Sustainability Report is written to a ‘B+’ Application Level, which requires a minimum of 20 indicators to be addressed, as well as external verification of the disclosures. We have focused on the core indicators and have reported against additional indicators that are of particular relevance to our business, including those from the Mining and Mineral’s Industry Supplement. The GRI indicators are listed below, including where they are disclosed in the report and an explanation of their reported level – reported, partially reported, not reported or not material. Independent assurance is provided for key disclosures, including greenhouse and energy, safety and health and performance summary sections.

For more information, please see the Materiality section of this report.

Fully reported Partially reported Not reported Not applicable or material to our business

STANDARD DISCLOSURES PART I: Profile Disclosures

Indicator Reporting requirement Report location and linksLevel of reporting

1. Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organisation. CEO Letter

1.2 Description of key impacts, risks and opportunities. Materiality, Commitments 2013, CEO Letter, Audits, Risk Management

2. Organisational Profile

2.1 Name of the organisation. About this report

2.2 Primary brands, products and/or services. Company overview

2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries and joint ventures.

Equity Interests, OZ Minerals’ organisational and management structure

2.4 Location of organisation’s headquarters. Report scope, boundary and data collection

2.5 Number of countries where the organisation operates and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.

Company overview

2.6 Nature of ownership and legal form. http://www.ozminerals.com/Investor-Information/Company-Summary.html

2.7 Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries).

Company overview

2.8 Scale of the reporting organisation. Prominent Hill, Our People, Economic value generated table

2.9 Significant changes during the reporting period regarding size, structure or ownership.

Company overview

2.10 Awards received in the reporting period. Awards


APPENDICES > GLOBAL REPORTING INITIATIVE continued


STANDARD DISCLOSURES PART I: Profile Disclosures continued


3. Report Parameters

3.1 Reporting period (e.g. fiscal/calendar year) for information provided. Report scope, boundary and data collection

3.2 Date of most recent previous report (if any). Report scope, boundary and data collection

3.3 Reporting cycle (annual, biennial, etc.). Report scope, boundary and data collection

3.4 Contact point for questions regarding the report or its contents. Our Readers and Feedback

3.5 Process for defining report content. Materiality and Our Readers

3.6 Boundary of the report (e.g. countries, divisions, subsidiaries, leased facilities, joint ventures, suppliers). See GRI Boundary Protocol for further guidance.

Report scope, boundary and data collection

3.7 State any specific limitations on the scope or boundary of the report (see completeness principle for explanation of scope).


3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities that can significantly affect comparability from period to period and/or between organisations.


3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report. Explain any decisions not to apply, or to substantially diverge from, the GRI Indicator Protocols.


3.10 Explanation of the effect of any re-statements of information provided in earlier reports and the reasons for such re-statement e.g. mergers/acquisitions, change of base years/periods, nature of business, measurement methods).

Gender representation – calculation has been revised to head count methodology for permanent full- and part-time employees only. Job bands E and F have been combined due to low numbers of employees within senior management positions. 2011 figures have been restated using this methodology. Employee turnover – calculation has been revised to total permanent employee exits as a percentage of the average OZ Minerals workforce for 2012. 2011 figures have been restated using this methodology.

3.11 Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report.

Energy consumption and greenhouse gas emissions, Health performance

3.12 Table identifying the location of the Standard Disclosures in the report. Global Reporting Initiative

3.13 Policy and current practice with regard to seeking external assurance for the report.


4. Governance, Commitments and Engagement

4.1 Governance structure of the organisation, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organisational oversight.

OZ Minerals’ organisational and management structure, OZ Minerals’ Sustainability Governance, Board and Committees

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

http://www.ozminerals.com/About- OZ-Minerals/Board-Of-Directors.html, Corporate Governance

4.3 For organisations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.

Strategic Approach to Sustainability

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Annual General Meeting

4.5 Linkage between compensation for members of the highest governance body, senior managers and executives (including departure arrangements) and the organisation’s performance (including social and environmental performance).

Corporate Governance

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Values and ethics




STANDARD DISCLOSURES PART I: Profile Disclosures continued


4. Governance, Commitments and Engagement continued

4.7 Process for determining the qualifications and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

http://www.ozminerals.com/About- OZ-Minerals/Corporate-Governance.html

4.8 Internally developed statements of mission or values, codes of conduct and principles relevant to economic, environmental and social performance and the status of their implementation.

Values and ethics

4.9 Procedures of the highest governance body for overseeing the organisation’s identification and management of economic, environmental and social performance, including relevant risks and opportunities and adherence or compliance with internationally agreed standards, codes of conduct and principles.

Risk Management,Corporate Governance

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental and social performance.

http://www.ozminerals.com/About- OZ-Minerals/Corporate-Governance.html

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation.

The precautionary approach is applied to the management of greenhouse gas emissions

4.12 Externally developed economic, environmental and social charters, principles or other initiatives to which the organisation subscribes or endorses.

Labour relations and human rights

4.13 Memberships in associations (such as industry associations) and/or national/international advocacy organisations in which the organisation:– Has positions in governance bodies;– Participates in projects or committees;– Provides substantive funding beyond routine membership dues; or– Views membership as strategic.

Industry Associations

4.14 List of stakeholder groups engaged by the organisation. Stakeholder engagement

4.15 Basis for identification and selection of stakeholders with whom to engage.

Stakeholder engagement

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.


4.17 Key topics and concerns that have been raised through stakeholder engagement and how the organisation has responded to those key topics and concerns, including through its reporting.


STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

G3 DMA Reporting requirement Report location and linksLevel of reporting

DMA EC Disclosure on Management Approach – Economic

Aspects Economic performance Operating and financial performance

Market presence Our people and Company overview

Indirect economic impacts Contributions to local economies

DMA EN Disclosure on Management Approach – Environmental

Aspects Materials Energy and Water conservation

Energy Energy consumption and greenhouse gas emissions

Water Water management

Biodiversity Land management and biodiversity

Emissions, effluents and waste Waste management

Products and services Environmental Performance

Compliance Sustainability management

Transport Transport of Prominent Hill concentrates

Overall Sustainability management




STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs) continued

G3 DMA Reporting requirement Report location and linksLevel of reporting

DMA LA Disclosure on Management Approach – Labour Practices and Decent Work

Aspects Employment Our people

Labour/management relations Labour relations and human rights

Occupational health and safety Safety and Health

Training and education Training and Development

Diversity and equal opportunity Workforce Profile and Diversity

Equal remuneration for women and men Attraction, retention and engagement

DMA HR Disclosure on Management Approach – Human Rights

Aspects Investment and procurement practices Local business support

Non-discrimination Labour relations and human rights

Freedom of association and collective bargaining Labour relations and human rights

Child labour Labour relations and human rights

Prevention of forced and compulsory labour Labour relations and human rights

Security practices Labour relations and human rights

Indigenous rights Cultural Heritage and Traditional Rights

Assessment

Remediation

DMA SO Disclosure on Management Approach – Social

Aspects Community Community Engagement

Artisanal and small-scale mining

Resettlement See our social standards via our website.

Closure planning Closure planning

Grievance mechanisms and procedures Community Engagement

Emergency Preparedness Crisis Management, Emergency Response Team

Corruption http://www.ozminerals.com/About- OZ-Minerals/Corporate-Governance.html

Public policy http://www.ozminerals.com/About- OZ-Minerals/Corporate-Governance.html

Anti-competitive behaviour http://www.ozminerals.com/About- OZ-Minerals/Corporate-Governance.html

Compliance Compliance

DMA PR Disclosure on Management Approach – Product Responsibility

Aspects Materials stewardship

Customer health and safety Transport of Prominent Hill concentrates

Product and service labelling Transport of Prominent Hill concentrates

Marketing communications

Customer privacy Transport of Prominent Hill concentrates

Compliance Transport of Prominent Hill concentrates




STANDARD DISCLOSURES PART III: Performance Indicators


Economic

Economic performance

EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other community investments, retained earnings and payments to capital providers and governments.

Economic value generated and distributed table

EC2 Financial implications and other risks and opportunities for the organisation’s activities due to climate change.

Proposed Carbon Price

EC3 Coverage of the organisation’s defined benefit plan obligations. OZ Minerals’ benefits model

EC4 Significant financial assistance received from government. Contributions to local economies

Market presence

EC6 Policy, practices and proportion of spending on locally based suppliers at significant locations of operation.

Contributions to local economies and local business support

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Contributions to local economies, Our people

Indirect economic impacts

EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind or pro bono engagement.

Socio-economic contributions

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Local business support

Environmental

Energy

EN3 Direct energy consumption by primary energy source. Energy consumption and greenhouse gas emissions

EN4 Indirect energy consumption by primary source. Energy consumption and greenhouse gas emissions

EN6 Initiatives to provide energy-efficient or renewable energy based products and services and reductions in energy requirements as a result of these initiatives.

Energy consumption and greenhouse gas emissions

EN7 Initiatives to reduce indirect energy consumption and reductions achieved.

Energy consumption and greenhouse gas emissions

Water

EN8 Total water withdrawal by source. Water management

EN9 Water sources significantly affected by withdrawal of water. Water management

Biodiversity

EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.

Land management and biodiversity

EN12 Description of significant impacts of activities, products and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.


MM1 Amount of land (owned or leased and managed for production activities or extractive use) disturbed or rehabilitated.


EN13 Habitats protected or restored. Land management and biodiversity

EN14 Strategies, current actions and future plans for managing impacts on biodiversity.


MM2 The number and percentage of total sites identified as requiring biodiversity management plans according to stated criteria and the number (percentage) of those sites with plans in place.


EN15 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.





STANDARD DISCLOSURES PART III: Performance Indicators continued


Environmental continued

Emissions, effluents and waste

EN16 Total direct and indirect greenhouse gas emissions by weight. Energy consumption and greenhouse gas emissions.

EN17 Other relevant indirect greenhouse gas emissions by weight. Energy consumption and greenhouse gas emissions.

EN19 Emissions of ozone-depleting substances by weight. There are no ozone-depleting substances produced at Prominent Hill

EN20 NOx, SOx, and other significant air emissions by type and weight. Air quality management

EN21 Total water discharge by quality and destination. Water management

EN22 Total weight of waste by type and disposal method. Waste management, Hazardous and Non-Hazardous Waste

MM3 Total amounts of overburden, rock, tailings and sludges and their associated risks.

Waste Rock and Tailings

EN23 Total number and volume of significant spills. Environmental Performance

Products and services

EN26 Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation.

Environmental Performance

EN27 Percentage of products sold and their packaging materials that are reclaimed by category.

Compliance

EN28 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations.

Environmental Performance

Transport

EN29 Significant environmental impacts of transporting products and other goods and materials used for the organisation’s operations and transporting members of the workforce.

Transport of Prominent Hill concentrates

Social: Labour Practices and Decent Work

Employment

LA2 Total number and rate of new employee hires and employee turnover by age group, gender and region.

Workforce Profile and Diversity

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Attraction, retention and engagement

Labour/management relations

LA4 Percentage of employees covered by collective bargaining agreements. Labour relations and human rights

MM4 Number of strikes and lock-outs exceeding one week’s duration, by country.


Occupational health and safety

LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.

Safety and Health Communication

LA7 Rates of injury, occupational diseases, lost days and absenteeism and number of work-related fatalities by region and gender.

Safety Performance

Safety and Health Monitoring

LA8 Education, training, counselling, prevention and risk-control programs in place to assist workforce members, their families or community members regarding serious diseases.

Safety and Health Communication






Social: Labour Practices and Decent Work continued

Training and education

LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.

Workforce Profile and Diversity, Case Study – Language, Literacy and Numeracy Program

LA12 Percentage of employees receiving regular performance and career development reviews, by gender.

Training and Development

Diversity and equal opportunity

LA14 Ratio of basic salary of men to women by employee category by significant locations of the operation.

Attraction, retention and engagement

Social: Human Rights

Child labour

HR6 Operations identified as having significant risk for incidents of child labour and measures taken to contribute to the elimination of child labour.


Forced and compulsory labour

HR7 Operations identified as having significant risk for incidents of forced or compulsory labour and measures to contribute to the effective abolition of child labour.


Security practices

HR8 Percentage of security personnel trained in the organisation’s policies or procedures concerning aspects of human rights that are relevant to operations.


Indigenous rights

MM5 Total number of operations taking place in or adjacent to Indigenous Peoples’ territories, and number and percentage of operations or sites where there are formal agreements with Indigenous Peoples’ communities.

Community Engagement

Social: Society

Local Communities

SO1 Percentage of operations with implemented local community engagement, impact assessments and development programs.

Community Engagement, Mining Technicians Course, Cross Cultural Awareness Program

Artisanal and small-scale mining

MM8 Number (and percentage) or company operating sites where artisanal and small-scale mining (ASM) takes place on, or adjacent to, the site; the associated risks and the actions taken to manage and mitigate these risks.

Land management and biodiversity – Cambodia exploration

Closure planning

MM10 Number and percentage of operations with closure plans. Closure planning

Public policy

SO5 Public policy positions and participation in public policy development and lobbying.

Industry Associations

Compliance

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Compliance






Social: Product Responsibility

Customer health and safety

PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement and percentage of significant products and services categories subject to such procedures.


PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.


Product and service labelling

PR3 Type of product and service information required by procedures and percentage of significant products and services subject to such information requirements.


Compliance

PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services.



APPENDICES

GLOSSARYacid rock drainage (ARD)When rock surfaces are exposed to air and rain, a reaction can occur with the elements in the rock which results in a change in the characteristics of the water that drains off. If the rock contains sulphides, oxidation processes can acidify the water. This process is known as acid rock drainage (ARD).

biodiversityBiodiversity is the variety of plants, animals and micro-organisms, their genetic variation and the different ecosystems of which they inhabit.

carbon dioxide equivalent (CO2-e)Carbon dioxide equivalent is a standard measurement used to indicate the impact of various greenhouse gas emissions on global warming relative to the same amount of carbon dioxide (CO2).

copper concentrateThe Prominent Hill operation produces copper concentrate. This is a fine grained material that contains a percentage of copper, gold and other minerals which has been concentrated to increase its copper content through the removal of waste materials. Copper concentrate is used by smelters to produce copper in its metal form.

cultural change programsInitiatives implemented by OZ Minerals to improve side-wide safety culture, including the Peer Observation Program and the Site Culture Development Strategy.

‘high-potential’ and ‘high-performing’ femalesFemale employees that have been identified as having a high potential to move into management roles in the next five years and are performing in their roles above expectations.

footprintThe area covered by OZ Minerals’ operations and activities.

Global Reporting Initiative (GRI)An international multi-stakeholder process aimed at producing and disseminating globally applicable sustainability reporting guidelines. These guidelines are for voluntary use by organisations for reporting on the economic, environmental and social dimensions of their activities, products and services. For more information, see www.globalreporting.org.

greenhouse gases (GHG)Gases in the earth’s atmosphere that absorb and re-emit infrared radiation, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs) and sulphur hexafluoride (SF6).

human rightsBasic standards of treatment to which all people are entitled, regardless of nationality, gender, race, economic status or religion.

IUCN Red ListThe International Union for Conservation of Nature’s (IUCN) Red List provides information about the characteristics, conservation status and distribution of flora and fauna species facing the risk of global extinction.

KPIKey Performance Indicator.

kilolitre (kL)One kilolitre is equal to one thousand litres.

Leading My CareerA training and mentoring program for high-performing females, run collaboratively between OZ Minerals and Beach Energy, an Adelaide-based oil and gas company.

Lost Time Injury Frequency Rate (LTIFR)A Lost Time Injury is a work-related injury or illness resulting in an absence from rostered work of at least one full day or shift anytime after the day or shift on which the injury occurred. The LTIFR is the number of LTIs per million hours worked.

megalitre (ML)One megalitre is equal to one million litres.

Peer Observation ProgramA behavioural based safety program that involves employees observing colleagues while they undertake job tasks to identify possible risks and hazards.

petajoule (PJ)One petajoule is equal to 1,015 joules.

significant community incidentsLevel 3 and 4 significant incidents are internally classified as those that cause or have the potential to cause moderate to major community and/or external impact within OZ Minerals’ operational control.

significant community issuesKey concerns raised by local community stakeholders that are a result of or strongly influenced by OZ Minerals’ activities within operational control.

Site Culture Development StrategyA Prominent Hill initiative that enables employee and contractor management to define, assess and improve key areas to improve the overall safety culture.

stakeholdersAny person, group or interested party that may be impacted by OZ Minerals’ operations, activities or performance.

tailingsFinely ground materials from which valuable minerals have been largely extracted.

tailings storage facilityFacility designed for the storage of tailings material produced during ore processing.

Total Recordable Injury Frequency Rate (TRIFR)TRIFR is the total number of recordable injuries per million working hours. ‘Recordable Injuries’ include those that result in lost time, medical treatment and restricted work injuries. First aid injuries are not included.

waste rockMaterial such as soils, barren or uneconomic mineralised rock that surrounds a mineral orebody and must be removed in order to mine the ore.


APPENDICES

FEEDBACKOZ Minerals Limited

ABN 40 005 482 824

Corporate Office

Level 10, 31 Queen Street Melbourne Victoria 3000 Australia Telephone: (61 3) 9288 0333 Facsimile: (61 3) 9288 0300 [email protected]

Share Registry

Link Market Services Limited Level 1, 333 Collins Street Melbourne Victoria 3000 Australia Telephone: 1300 306 089 International: (61 2) 8280 7763 Facsimile: (61 2) 9287 0303 www.linkmarketservices.com.au

Sustainability and media enquiries

Rachel Eaves Head of Public Affairs and Sustainability Telephone: (61 3) 9288 0333 [email protected]

Investor enquiries

Natalie Worley Head of Investor Relations Telephone: (61 3) 9288 0333 [email protected]

Careers at OZ Minerals

[email protected]

Annual General Meeting

2.00 pm (Melbourne time) Tuesday, 28 May 2013 Melbourne Exhibition Centre Auditorium Level 2, Clarendon Street Southbank, Melbourne

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