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Sustainability Report 2014

Newcrest Mining Limited

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In this Sustainability Report

A Letter from Newcrest’s CEO 1

About this Report 2Restatements 3Forward Looking Statements 4Ore Reserves and Mineral Resources Reporting Requirements 4

International Council on Mining and Metals Sustainable Development Principles 5

About Newcrest Mining 7

Recognition 9Living Our Values Awards 9Golden Gecko Awards for Environmental Excellence – Finalist 9Australia Day Award 9

Our Stakeholder Engagement 10

Our Materiality Approach 12

Sustainability Governance 13

Our Economic Responsibilities 16Sustainable benefits for local communities 16

Our Environmental Responsibilities 20Managing our environmental impacts 21Water 21Mine closure 22Rehabilitation 23

Our Social Responsibilities 25Social and economic development 26Respecting human rights 28

Our Employee Responsibilities 31Health and safety where we work 31

Operations 35Cadia Valley 36Telfer 38Lihir 40Hidden Valley 42Gosowong 44Bonikro 46

Projects 48Wafi-Golpu 48Namosi 49

Exploration 50

Assurance Statement 51

Corporate Directory IBC

Front cover: Local Indigenous boy at Telfer, Western Australia. Inside front cover: Chris Tiemann, Environment Superintendent at Telfer, Western Australia.

Sandeep Biswas

A Letter from Newcrest’s CEO

Looking to the year ahead, the Company remains focused on the key priorities of operating discipline and safety, cash generation and profitable growth, underpinned by a culture of accountability and personal ownership.

NEWCREST MINING SUSTAINABILITY REPORT 2014 1

I am pleased to present our 2014 Sustainability Report.

FY2014 was a year of both change and progress at Newcrest.

We transitioned to a new Chief Executive and new Chairman. Peter Hay took over from Don Mercer, who retired as Chairman of the Board of Directors at the end of December 2013. I joined Newcrest in January 2014 as Chief Operating Officer and became Managing Director and Chief Executive Officer in July 2014, succeeding Greg Robinson.

During the year, in the face of further falls in the gold price, we continued our focus on removing costs from the business. We simplified some of our more complex sites and completed the consolidation of our head office functions, which resulted in a number of employees departing the business. By the year-end, positive progress was evident, with lower All-In Sustaining Costs and an increase in gold production over the prior year.

The reinvigoration of our safety approach, with a primary focus on eliminating major safety and environmental hazards, particularly at our sites, was my first initiative as Chief Operating Officer. Following a detailed assessment of our operations and organisational health, I also initiated a comprehensive, Company-wide improvement program called ‘Edge’, which targets safety, operating discipline and free cash flow along with profitable growth. It is underpinned by a culture of personal ownership and accountability. Through this program, we are embedding a strong performance improvement mindset at the Company. This rigorous program identifies, executes and accounts for specific improvement initiatives.

The safety of our people and the prevention of fatalities is our first priority above all else. Sadly, a contractor was fatally injured in December 2013 while undertaking civil works at the tailings storage facility at our Telfer mine in Western Australia. A fatal incident also occurred in December 2014 at our Morobe Mining Joint Venture (MMJV) Hidden Valley operation. Although outside the reporting period, this significant incident has been included for the information of our stakeholders. Newcrest expresses its sincere condolences to family, friends and colleagues of the deceased employees. These tragic accidents are unacceptable and have overshadowed our safety performance and decline in injury rates.

We recognise that our success is strongly linked to our ability to contribute to economic growth and social development in the countries and communities where we operate. The division and destination of mine-derived funds is an area of interest to many of our host communities and governments. We contribute taxes and royalties, direct and indirect employment, and vital infrastructure such as health and education facilities. We facilitate non-mine dependent business development and, wherever possible, seek to create business opportunities for our host communities.

The economic contribution of mining and the benefits of positive community relationships were well articulated by the participants in the official opening of the Cadia East mine near Orange, in New South Wales, in May 2014. The official opening was conducted by the Premier of New South Wales, who acknowledged the positive relationship that Cadia Valley has developed with its near neighbours and the local Orange community. Cadia East will be one of the largest metalliferous underground mines in the world and we thank the local community for their ongoing support for the Cadia Valley mining operations.

During the year, we became a member of the Extractive Industries Transparency Initiative, or EITI. In support of the Papua New Guinea (PNG) Government’s candidate membership of the EITI, we are an active member of the multi-stakeholder group of corporate, government, civil sector and non-government organisation (NGO) representatives that are supporting the PNG government in the development of its reporting framework.

Also in the area of ethical business conduct, we applied to become a member of the Voluntary Principles on Security and Human Rights, with our membership application being accepted in August 2014. During the following year, we will be further developing our pathway to embedding the Voluntary Principles within our operational framework.

Minimising our impact on the environment is important to Newcrest, our host communities, employees and other stakeholders. It also makes sound business sense. During the year, we continued to focus on water management and energy reduction, through a range of activities and projects that carried over from the previous year and by others that were introduced through the Edge improvement program.

Over the coming years, Newcrest aims to remain focused on our key priorities of safety and operating discipline, cash generation and profitable growth within a culture of accountability and personal ownership. For sustainability, this means maintaining a strong focus on the safety and health of our employees; regularly engaging with our stakeholders, including neighbouring communities, to maintain our social licence to operate; applying robust environmental management through application of our policies and standards to meet regulatory requirements and manage risks; and managing all-in sustaining costs of the business to be able to respond to changes in market conditions and progress growth opportunities.

I thank our workforce, suppliers, and host communities and governments for their support and recognise their contribution to the Company’s progress.

Sandeep Biswas Managing Director and Chief Executive Officer

2 NEWCREST MINING SUSTAINABILITY REPORT 2014

Through this Report, we strive to inform our stakeholders of our environmental, social and financial management and performance, enabling a public review of our performance.

This Report covers all of Newcrest’s and its subsidiaries operations globally, including joint venture projects, for the period 1 July 2013 to 30 June 2014. References in this Report to Newcrest are to Newcrest Mining Limited and/or its subsidiaries.

We annually report against all core and material GRI indicators and this information is available in our GRI G3 Content Index, which is an accompanying document to the 2014 Sustainability Report, located on the Newcrest website at http://www.newcrest.com.au/sustainability/current-sustainability-report. Also on our website, we offer our Disclosures on Management Approaches, which describe our approaches to managing different aspects of our business. These documents may be accessed via the quick response (QR) code provided below.

As Newcrest prepares its transition to the GRI G4 framework in FY2015, we continue to focus on issues most material to our business. These material issues help set out the structure of this Report, including examples of how these material issues impact our operating sites and exploration projects. These are:

Australia – Telfer, comprising Telfer Open Pit and Telfer Underground (Western Australia); and – Cadia Valley, comprising Ridgeway Underground and Cadia East Underground mines (New South Wales).

Papua New Guinea (PNG) – Lihir (New Ireland Province); and – Hidden Valley (HV) (Morobe Province).1

Indonesia – Gosowong, comprising Kencana Underground and Toguraci Underground mines (Halmahera Island, North Maluku).2

Côte d’Ivoire

– Bonikro Open Pit (Central Southern Province).3

About this Report

Newcrest Mining Limited is proud to present its latest Sustainability Report, now in its thirteenth consecutive year and its eleventh year using the Global Reporting Initiative (GRI) framework.

Note: – All sites are 100 percent Newcrest-owned unless otherwise specified.

1 Owned by the Hidden Valley joint venture (HVJV), one of three unincorporated joint ventures in the Morobe Province of Papua New Guinea between subsidiaries of Newcrest (50 percent) and Harmony Gold Mining Company Limited of South Africa (50 percent), collectively described as the Morobe Mining Joint Ventures (MMJV).

2 Owned and operated by PT Nusa Halmahera Minerals (an incorporated joint venture company between Newcrest (75 percent) and PT Aneka Tambang (25 percent)).

3 89.89 percent Newcrest (with the State holding 10 percent and the residual interest held by a minority shareholder).

http://www.newcrest.com.au/sustainability/current-sustainability-report

G3 profile disclosures

G3 management approach disclosures

G3 performance indicators and sector supplement performance indicators

Output

Output

Output

Report application level C C+ B B+ A A+St

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Report on: 1.1 2.1–2.10 3.1–3.8, 3.10–3.12 4.1–4.4, 4.14–4.15

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Report on all criteria listed for level C plus: 1.2 3.9, 3.13 4.5–4.13, 4.16–4.17

Repo

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Same as requirement for level B

Repo

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Not required Management approach disclosures for each indicator category

Management approach disclosures for each indicator category

Report on a minimum of 10 performance indicators, including at least one from each of: Economic, Social and Environmental

Report on a minimum of 20 performance at least one from each of Economic, Environmental, Human Rights, Labor, Society, Product Responsibility

Report of each core G3 and sector supplement indicator with due regard to the materiality principle by either: a) reporting on the indicator or b) explaining the reason for its omission


In addition, this Report covers Newcrest’s major advanced exploration activities, including:

Exploration Projects

– Wafi-Golpu (Papua New Guinea);4 and – Namosi (Fiji).5

Newcrest also maintains a strong pipeline of brownfields and greenfields exploration projects in Australia, Papua New Guinea, Indonesia, Fiji and Côte d’Ivoire. Data from brownfields exploration is included in this Report (see Exploration section). We have not included greenfields exploration data (as there are many projects in many locations) other than for designated exploration projects, such as Wafi-Golpu and Namosi.

Currency figures are reported in Australian dollars unless otherwise stated. Where appropriate, the equivalent in US dollars (USD), Papua New Guinea Kina (PGK), Indonesian Rupiah (IDR), Côte d’Ivoire Francs (CFA) and Fijian Dollars (FJD) are provided. The basis for currency conversion in this Report is A$1 = 0.9420 USD, A$1 = 2.28641 PGK, A$1 = 11,177 IDR, A$1 = 453.00 CFA and A$1 = 1.70822 FJD.

We have engaged Ernst and Young to conduct independent limited assurance of our reporting of material issues, specified data and related performance disclosures and the requirements of the GRI Application Level A+, as outlined in the table above. Please refer to Ernst and Young’s assurance statement on page 51 and 52 of this report.

For any comments or enquiries about this Report or our sustainability reporting process, please email sustainability [email protected] or complete the feedback form on our website (http://www.newcrest.com.au).

RestatementsMinor changes have been made to data that was reported in last year’s Sustainability Report. These include:

– the total area of land disturbed at Gosowong, which was incorrectly reported in FY2013 as 29,495 hectares and has been revised as 360 hectares. Consequently, the total area of land disturbed for the Company in FY2013 has been revised as 7,939 hectares;

– the total amount of waste tyres at Telfer, which was incorrectly reported in FY2013 as 718,701 tonnes and has been revised as 754 tonnes, with the total non-process solid waste revised as 5,766 tonnes. Consequently, the total amount of waste tyres for the Company in FY2013 has been revised as 1,872 tonnes, with the total non-process solid wastes revised as 22,296 tonnes;

– FY2013 operating costs, employee salaries and wages, and superannuation where indicated, due to alignment with all-in sustaining costs; and – FY2012 and FY2013 employee turnover numbers by gender and age group where indicated, due to revised methodology consistent with FY2014 that is based on total site employees instead of total Company employees.

4 Owned by Wafi-Golpu joint venture (WGJV), one of three unincorporated joint ventures in the Morobe Province of Papua New Guinea between subsidiaries of Newcrest (50 percent) and Harmony Gold Mining Company Limited of South Africa (50 percent), collectively described as the Morobe Mining Joint Ventures (MMJV).

5 Operated by Newcrest and owned by an unincorporated joint venture between Newcrest (69.94 percent) and Nittetsu Mining Company Limited and Mitsubishi Materials Corporation of Japan.

Figure 1: GRI G3 application level criteria


Forward Looking StatementsThis Report includes various forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘continue’, and ‘guidance’, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

Ore Reserves and Mineral Resources Reporting RequirementsAs an Australian company with securities listed on the Australian Securities Exchange (‘ASX’), Newcrest is subject to Australian disclosure requirements and standards, including the requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia comply with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) and that Newcrest’s ore reserve and mineral resource estimates comply with the JORC Code. On 28 November 2014, Newcrest ceased to be a reporting issuer in Canada.

About this Report continued


Enduring Value adopts the International Council on Mining and Metals (ICMM) Framework for Sustainable Development and provides implementation guidance in an Australian and international context.

Newcrest’s commitment to Enduring Value brings with it the following obligations:

– progressive implementation of the ICMM principles and Elements; – public reporting of site-level performance at least once a year, with reporting metrics self-selected from the Global Reporting Initiative (GRI), the GRI Mining and Metals Sector Supplement or self-developed; and – assessment of the systems used to manage key operational risks.

Newcrest continues to align its sustainability approach to the ICMM principles. The ICMM principles are also subject to periodic review and updating.

International Council on Mining and Metals Sustainable Development Principles

Newcrest is a member of the Minerals Council of Australia (MCA) and in May 2005 became a signatory to ‘Enduring Value – the Australian Mining Industry Framework for Sustainable Development’.


The following table provides an update of Newcrest’s sustainable development approach.

Table 1: Newcrest’s Alignment to the ICMM Principles for FY2014

ICMM Principle Current Newcrest Alignment

1. Implement and maintain ethical business practices and sound systems of corporate governance.

Ethical business practice is a key part of Newcrest’s policies and practices. During the reporting period, we finalised the revision of the Code of Conduct and commenced training to roll out the updated Code of Conduct to all Newcrest employees and business partners. The Code of Conduct is binding for all Newcrest employees. The Newcrest Code of Conduct training is now implemented as a normal part of the site training programs. Details of Newcrest’s corporate governance statement and structure are provided in our 2014 Annual Report.

2. Integrate sustainable development considerations within the corporate decision-making process.

Sustainable development considerations are integrated as part of the Company’s decision-making processes for project studies and investment decisions. While the Newcrest Board has ultimate accountability for our sustainability agenda, sustainable development matters are considered by a sub-set of the Newcrest Board, our Safety and Sustainability Committee. Our investment and project management decision making tollgates all include detailed consideration of sustainable development aspects.

3. Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities.

Our commitment to this principle is reflected in our policies for Human Rights and Security, and the amendment of our existing Communities Policy. These policies have been endorsed by the Newcrest Board. As these polices are implemented, other existing policies will also be regularly reviewed to ensure that there is consistency across our policies and clear understanding of our commitment and compliance requirements.

4. Implement risk management strategies based on valid data and sound science.

Our Risk Management Framework is used to identify and evaluate risk events and establish controls and mitigation strategies. Risks considered in the process include strategic, corporate and commercial, major hazards (including operational, health and safety, and environmental) and project management risks (see our 2014 Annual Report). Risk management strategies are developed based on assessments of control effectiveness, availability of data and consultation with stakeholders.

5. Seek continual improvement of our health and safety performance.

Our Health and Safety Policy includes a commitment to continual improvement. This year, we have worked on improving our group-wide management system and standards, and continued improvements within CHESS (Community, Health, Environment and Safety System). These guide our practice through consistent standards across the organisation and enables reporting and monitoring of performance and trends. Detailed investigations and reviews of incidents are undertaken in order to identify and address the root causes of incidents to prevent reoccurrence.

6. Seek continual improvement of our environmental performance.

Our commitment to continual improvement is embedded in our Environmental Policy. In the reporting period, we reviewed our environmental standards, worked on the implementation of our integrated CHESS system and developed a program to improve our monitoring of new and existing internal and external commitments and legal requirements (Integrated Planning and Permitting project). Lihir Gold Mine maintained compliance with ISO14001.

7. Contribute to conservation of biodiversity and integrated approaches to land use planning.

Our Environmental Policy includes a commitment to the conservation of biodiversity and integrated approaches to land use planning. We implement mitigation and management measures to protect flora and fauna of high biodiversity value at our operations and advanced exploration projects. We remain members of the Business and Biodiversity Offsets Programme and actively participate in the Minerals Council of Australia Land Working Group to improve industry performance in land use planning and biodiversity management.

8. Facilitate and encourage responsible product design, use, re-use, recycling and disposal of our products.

As our products are not directly sold on the retail market, our approach is primarily around managing potential impacts on the environment throughout the life cycle of our mining operations. Certification to the International Cyanide Management Code at the Gosowong and Hidden Valley mines is an illustration of our approach to product stewardship. Newcrest is a member of the Minerals Council of Australia Product Stewardship Committee. During the year, changes to the International Maritime Organization Solid Bulk Cargoes Code were assessed.

9. Contribute to the social, economic and institutional development of the communities in which we operate.

We make significant 6 contributions for the social and economic development in the areas we operate. Our approach to managing our social responsibilities is expressed in our corporate framework, specifically our Community Policy and Community Standards. Increasingly, our focus is on working with communities to prepare them for the post-mining scenario by facilitating the establishment of non-mine dependent economic activities.

10. Implement effective and transparent engagement, communication and independently verified reporting arrangements with our stakeholders.

Our engagement with stakeholders is driven at the highest level by two of Newcrest’s core company values: Working Together and Caring About People. As we have grown from a largely Australian-based business to an international, culturally diverse and highly visible company, we have expanded the range and depth of stakeholders we need to communicate with. Depending on the circumstances, our relationships are managed by individual Newcrest personnel, teams or departments, with methods of engagement differing from formal to informal processes as appropriate (see Our Stakeholder Engagement).

International Council on Mining and Metals Sustainable Development Principles continued

6 Significant contributions include activities or monetary contributions that provide a demonstrable and recognisable benefit to our neighbouring communities and local and regional governments, e.g. medical services, community housing programs, royalties and taxes.

Cadia Valley 100 percent NewcrestOperating mine

Telfer100 percent NewcrestOperating mine and growth opportunity

Lihir100 percent NewcrestOperating mine and growth opportunity

Gosowong75 percent NewcrestOperating mine

Wafi-Golpu 50 percent NewcrestGrowth opportunity

Hidden Valley50 percent NewcrestOperating mine

Bonikro89.89 percent NewcrestOperating mine

Namosi69.94 percent NewcrestGrowth opportunity

1

2

3

4

5

6

7

8

Australia

Indonesia

Papua New Guinea

Fiji 8

1

2

356

4

Africa

7


About Newcrest Mining

Newcrest is one of the world’s largest gold mining companies and currently operates mines in four countries. With a near-term focus on fully realising the potential of each asset in the portfolio, the Company’s key priorities are operating discipline (including safety), cash generation and profitable growth.

6operating mines in the Asia Pacific region and West Africa

4growth opportunities

Newcrest’s strategy is to build a portfolio of predominantly long-life, low-cost gold assets that can remain profitable through various stages of the gold price cycle. The Company is an unhedged gold producer and seeks to maintain a conservative balance sheet.

The Company took decisive action in response to the significant fall in the gold price in April 2013, and over the past 18 months has made steady progress in improving productivity and reducing costs and capital expenditure. Newcrest continues to have a strong focus on improving the operating and financial performance across the business.

Newcrest has strong technical capabilities in exploration, deep underground block caving, shallow targeted underground mines, large open pits and a variety of metallurgical processing skills. The Company is committed to maintaining a safe environment for our people, operating and developing mines in line with good environmental practices and building lasting relationships with the communities in which we operate.

Headquartered in Melbourne, Australia, Newcrest is among the top 50 companies listed on the Australian Securities Exchange and is also listed on the Port Moresby Stock Exchange.

As at 30 June 2014, Newcrest had a market capitalisation of A$8.084 billion and had a workforce of over 10,000 people across Australia, the Pacific region, Asia and Africa.


Table 2: Newcrest’s FY2014 Sustainability Performance Targets and Progress as at 30 June 2014

Area Target Progress Comment

Environment Newcrest environmental standards revised and supporting guidelines developed.

A gap analysis of the updated Standards commenced to identify focus areas.

Update the Mine Closure Standard. The Mine Closure Standard was reviewed, updated and released in January 2014.

Cyanide Code certification program implementation to continue.

As a signatory to the Cyanide Code Newcrest remains committed to progressive certification of our sites. An interim recertification review was conducted at Gosowong and Hidden Valley achieved certification during the year.

Total Recordable Environmental Incident Frequency Rate (TREIFR) <0.91.

The TREIFR decreased from 1.0 in FY2013 to 0.5 in FY2014. Newcrest continues to focus its efforts on recording and reporting environmental incidents to learn from events and improve its environmental performance.

Safety and Health

Total Recordable Injury Frequency Rate (TRIFR) <3.3. The TRIFR decreased from 3.6 in FY2013 to 3.1 in FY2014, a positive result in comparison to the target for the year. Newcrest continues to focus on improving the health and safety of its employees and contractors.

Completion of risk reduction actions >95 percent. Completion of actions related to Major Hazards Risk and Assurance activities, and arising from Significant Potential Incidents, was 99.5 percent.

Major Hazard Standards implemented to schedule, including assurance activities.

In FY2014, Major Hazard Standards for safety and health were implemented in a staged approach. The implementation was followed by assurance activities (both site self-assurance and independent assurance), to confirm compliance.

Malaria management program developed and implemented to schedule.

Through the partnership with Medicines for Malaria Venture, a significant reduction in malaria cases was recorded during FY2014.

Social and Community

Major Community Benefits Agreements progressed. There are two community agreement review/negotiation processes currently underway. The first is the Lihir Integrated Benefits Package (IBP) review with the people of Lihir and the second is the development of a comprehensive Indigenous Land Use Agreement (ILUA) with the Martu peoples of the western desert in Western Australia. Solid progress has been made with the ILUA and this process is in the final stages of negotiation. Good progress was made with the Lihir review through until the end of the current reporting period. 7

Employees and Diversity

To increase the proportion of women selected for the graduate program from 25 percent as of 31 December 2010 to 33.3 percent as at 31 December 2013.

Target achieved in December 2013.

That 33.3 percent of succession plans for all Level 2–5 roles will have at least one female included by 31 December 2013.

Target achieved in April 2013.

Increase the proportion of women in management Levels 2–4 by 15 percent by 31 December 2013.

Target achieved in December 2013.

Reached In progress Not reached

To further embed the progress Newcrest made in respect to diversity measures outlined in Table 2 above, Newcrest has selected three measures for the forthcoming reporting period 2014–16.

New diversity measures were approved by the Newcrest Board in early 2014 and replaced those outlined in Table 2. The new measures are intended to deliver a larger pool of women from which Newcrest can identify and develop future leaders.

The new measures are as follows:1. Increase the representation of women in management

Levels 2–4 to a minimum of 16 percent by 31 December 2016.

2. Increase the proportion of women accessing programs aimed at accelerating development, by a minimum of 20 percent by 31 December 2016.

3. Increase the representation of women selected for the graduate program to a minimum of 40 percent by 31 December 2016.

The key priorities for Newcrest over the next twelve months will be focused on strengthening the capability of people leaders to create a motivating work environment for their people, which is characterised by an inclusive leadership style. Continued focus will be on lifting the diversity of Newcrest’s workforce, with a particular focus on gender and nationalisation whilst continuing to strengthen Newcrest’s tools, resources and systems to promote work flexibility.

About Newcrest Mining continued

7 Subsequent to the reporting period, the Lihir land owner representatives broke off the discussions at the beginning of FY2015; both parties are now reformulating their strategies with a view to eventual resumption of the process. Despite this breakdown, relationships on a day-to-day basis remain sound.


Recognition

In line with Newcrest’s values, we seek high performance in ourselves and others. We encourage ambition, and continue to recognise and celebrate the success of our people.

Living Our Values AwardsNewcrest’s Living Our Values Awards are awarded annually to individuals or teams who demonstrate outstanding commitment to Newcrest’s values. Awards are given for each of the five values:

– We care about people – We work together – We value innovation and problem solving – We seek high performance in ourselves and others – We act with integrity and honesty.

The 2014 Living Our Values Awards winners were: – Grace Kakisina (Gosowong) – We care about people – Margaret Yanda, John Sardo, Marslyn Saun (Lihir) – We work together – Chris Hamilton (Cadia Valley) – We value innovation and problem solving – Anthony Brown, Tim Cock, Ben Garrett, Michael Gough, Bradley Penna (Telfer) – We seek high performance in ourselves and others – Peter Simmons (Melbourne) – We act with integrity and honesty.

Golden Gecko Awards for Environmental Excellence – FinalistAt Newcrest, valuing innovation and problem solving is often instrumental in improving the environment where we work. At Telfer, this has been exemplified by the construction of a copper concentrate storage facility, as pictured above.

Although initially driven by compliance, Telfer completed the construction of a copper concentrate storage facility to prevent the migration of copper concentrate from the existing facility. This construction far exceeded its initial regulatory requirement and as such, was recognised as setting a new industry benchmark in mine storage facilities, achieving ‘Finalist’ in the 2014 Golden Gecko Awards for Environmental Excellence, issued by the Government of Western Australia.

Telfer, situated in Western Australia, is susceptible to high-wind conditions, which at times lifts copper concentrate from the storage pad into the surrounding environment. Through extensive predictive modelling of dust generation and dispersion using historical wind speed data and copper concentrate production and storage data, a porous wall

enclosure was found to be most effective in reducing dust generation; this includes during periods of high winds generated by tropical storm events. The final structure resulted in an 11-metre high wall enclosure with a reticulated dust suppression system, and an automated truck wheel wash (to remove copper concentrate from transportation vehicles while inside the load-out area), with consideration to the following:

– adequate storage to accommodate excess concentrate caused by transport or shipping delays; – suitable levels of dust suppression; – appropriate sumps to capture concentrate from washed stockpiles, wheel washes, and rain events; – adequate sizing of all entrances and exits with automated opening and closing ability; – removal of any mechanical exhaust/ventilation system, or excess power requirements; – improvement of lighting; and – potential for upgrade of facility to accommodate a roof if required.

Australia Day Award During 2014, Cadia Valley was recognised for its contribution to the local Blayney Shire community through its participation in the Blayney Festival and Cadia Valley Open Day by receiving an Australia Day Award from the Blayney Shire Council.

This year, Cadia Valley hosted more than 2,000 visitors at its regular open day. Open days are an important demonstration of our transparency and support for local communities, and provide an opportunity to showcase the talent and professionalism of our people, and to show appreciation for their effort. During late 2013, Cadia Valley’s Open Day was held in conjunction with the inaugural Blayney Festival, an initiative of the Blayney community, incorporating local art, music and community activities.


Our Stakeholder Engagement

We seek active, inclusive engagement with our stakeholders, but also respect their wish to engage with us on their terms.

Depending on the circumstances, our relationships are managed by individual Newcrest personnel, teams or departments, with methods of engagement differing as appropriate from one stakeholder group to the next. Formal and informal processes are employed to maintain relationships, to keep stakeholders informed of relevant business activities and to stay abreast of stakeholder issues and concerns. Serious matters are brought back to our executive committee and/or management team through internal communication paths. In certain instances, we have established or engaged independent advisory panels or experts to assist with complex stakeholder matters.

An illustration of our stakeholder groups, examples of key stakeholders and our stakeholder engagement processes are shown on page 11.

Newcrest is committed to working with governments, industries and other stakeholders to achieve appropriate and effective public policy, laws, regulations and procedures that facilitate the mining sector’s contribution to sustainable development. To achieve these objectives, we work through a number of peak industry bodies in the jurisdictions in which we operate.

As at 30 June 2014, Newcrest is affiliated with or a member of the following organisations:

– Australia Fiji Business Council; – Australia Papua New Guinea Business Council; – Australian Investor Relations Association; – Australian Mines and Metals Association; – Australian Safety and Compensation Council; – Bulolo Chamber of Commerce;

– Business and Biodiversity Offsets Programme (BBOP); – Business Council of Australia (BCA); – Chamber of Commerce and Industry of Côte d’Ivoire; – Chamber of Commerce of France in Côte d’Ivoire; – Chamber of Minerals and Energy of Western Australia; – Corporate Tax Association of Australia; – Employers Federation of Papua New Guinea; – Fiji Australia Business Council; – Fiji Commerce and Employers Federation (FCEF) – International Copper Association, Australia; – International Cyanide Management Code; – International Network for Acid Prevention (INAP); – International Tungsten Industry Association (pending); – Lae Chamber of Commerce; – Major Employers Association – Confédération Géneralé des Enterprises de Côte d’Ivoire (CGECI); – Minerals Council of Australia (MCA); – Mining Association – Groupement des Professionels Miniers de Côte d’Ivoire (GPMCI); – Mining and Quarrying Council; – New South Wales Minerals Council; – Papua New Guinea Chamber of Mines and Petroleum; – Sustainable Minerals Institute (SMI) – University of Queensland; – Suva Chamber of Commerce; – World Gold Council*; and – Western Australian Chamber of Mines.

*On 23 April 2015 Newcrest will terminate its membership to the World Gold Council.


Figure 2: Our engagement with stakeholders

Stakeholder group Example of stakeholders Examples of stakeholder approach

n Shareholders n Analysts

n Annual reports, quarterly production reports, half-yearly financial reporting

n Website and email, investor briefings, one-on-one discussions n Investor days n Conference calls n Market announcements n Annual General Meeting (also webcast)

n Executive Committee n Site management teams n Employees n Contractors

n Employee briefings n Intranet, email, newsletters, social events, notice boards, departmental site and toolbox meetings, internal audits and inspections, performance reviews

n Site General Manager town hall meetings n Speak-out service n Site-localised media stories n Direct engagement between people leaders and their teams

n Local residents n Indigenous communities n Landowners

n Community relations team visits n Resident and community meetings n Site visits n Regular communication with leaders and community generally, providing feedback forums

n Complaints and grievance mechanisms n Sponsorships and partnerships n Collaborative agreements n Engagement of external, independent experts n Media engagement on localised initiatives n Community newsletters n Websites

n Local suppliers n Non-local suppliers

n Collaborative guidelines n Out to market approaches n Open and collaborative face-to-face engagement and discussions n Regular performance meetings n Contractual agreements

n Australian federal, state and local government n Papua New Guinea governments – national, provincial, local

n Côte d’Ivoire Government n Indonesian Government n Fijian Government n Department of Foreign Affairs and Trade n WorkSafe n Government departments, as appropriate in each jurisdiction

n Open and collaborative face-to-face engagement n Quarterly updates in Asia and Pacific regions n Annual reports, website and email, compliance audits and inspections n Direct engagement on matters of local importance n Industry body involvement n Media engagement on localised initiatives

n Mining and metals industry n Non-mining and metals industry n Business, professional associations n Local country and regional business associations

n Meetings, reports and discussions around the specific considerations of mining and considerations for policy

n Reports, face-to-face discussions, presentations, collaborative agreements

n Environmental n Community n Mining

n Meetings, reports, face-to-face discussions n Site visits n Exploring collaborative opportunities

n Research institutions n Tertiary and vocational institutions

n Involvement on advisory boards n Conference attendance n Meetings, reports, face-to-face discussions

n National business media n Localised media (site and country)

n Conference calls n Day-to-day queries n Site visits n News stories and press releases n Newcrest website

n General public n Newcrest website n Reports n Feedback tools

n Smelters n Refineries

n Meetings n Reports n Face-to-face discussions n Site visits

Shareholders

Employees & contractors

Local communities

Suppliers

Government & regulators

Industry

Non-government organisations (NGOs)

Education & research

Media

Civil society

Customers

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Our Materiality Approach

Our Sustainability Report focuses on the issues that were most material to our business during the year.

We conduct a materiality process to help define these issues and aim to make this process more meaningful each year. As we transition to the new GRI G4 framework in FY2015, Newcrest will seek continual improvement of the processes that underlie our materiality approach, increasing the value of what and how we report to our stakeholders each year.

For our materiality approach in FY2014, we expanded on the previous year’s approach to include more direct correspondence with our sites. Over two Group-wide sessions, leaders and representatives from key functions within the Company joined site General Managers and Health, Safety, Environment and Community leaders to provide input on the key issues affecting their function, operation or project

during the reporting period. Similarly to FY2013, personnel represented the interests of social responsibility, health, safety, environment, finance, external affairs, procurement, security, human resources, risk and assurance, and corporate governance. An initial list of issues was reviewed against the material issues reported for FY2013, followed by an in-depth assessment of new and emerging issues that occurred during FY2014. These issues were then prioritised and debated, and grouped by relevance to our stakeholders, the business, or both. The final list of our most material issues, as it appears in Table 3, below, was provided to our Safety and Sustainability Committee for review and endorsement.

Table 3: Our material issues

Material issue Report section Page

Increasing focus of governments on the resources industry Sustainability Governance 14

Sustainable benefits for local communities Our Economic Responsibilities 16

Managing our environmental impacts Our Environmental Responsibilities 21

Social and economic development Our Social Responsibilities 26

Respecting human rights Our Social Responsibilities 28

Health and safety where we work Our Employee Responsibilities 31


Sustainability Governance

Our new Chief Executive and his team are fully engaged in implementing his priorities for improving performance and realising potential.

Adherence by the Company and its people to the highest standard of corporate governance is critical in order to achieve our vision to be the Miner of choice™. The Company regularly reviews its governance and compliance practices, taking into account the recommendations in the Corporate Governance Principles and Recommendations of the Australian Securities Exchange (ASX) Corporate Governance Council.

The Board of Directors sets the Company’s strategic goals and objectives and oversees management and the performance of the Company’s businesses on behalf of shareholders. This includes the responsibility of sustainability, which in turn is devolved to senior key people and, ultimately, their teams.

The Board undertakes an annual review of its performance, its committees and individual directors. This process, led by the Chairman and based on formal questionnaires and evaluations provided by Board members and senior managers, allows for regular improvements to be made to the functionality and performance of the Board and its associated committees. External affairs is a standing agenda item at each Board meeting.

At 30 June 2014, the Newcrest Board comprised 11 directors. This included three Executive Directors, Greg Robinson, Managing Director and Chief Executive Officer, Gerard Bond, Finance Director and Chief Financial Officer, and Sandeep Biswas, who joined Newcrest as Chief Operating Officer and Executive Director on 1 January 2014. Subsequent to the reporting period, Sandeep Biswas succeeded Greg Robinson as Managing Director and Chief Executive Officer on 4 July 2014 and Greg Robinson ceased employment with the Company.

The remaining eight Board members, including the Chairman, are Non-Executive Directors. They are considered independent in accordance with the Board’s Independence Policy. Each director’s skills, experience and relevant qualifications and expertise, as well as the term of office held as at 30 June 2014, are set out in the Newcrest 2014 Annual Report (pages 8–9), an interactive copy of which is available at Newcrest’s website (www.newcrest.com.au).

Don Mercer retired as Chairman of the Board on 31 December 2013 and was succeeded by Peter Hay, who was appointed as a Non-Executive Director on 8 August 2013. The functions of the Board are set out in its Board Charter. The roles and responsibilities of the Board committees are also set out in charters which are regularly reviewed and revised as appropriate.

The Board operates four standing committees (Audit and Risk, Human Resources and Remuneration, Safety and Sustainability, and Nominations), which each provide a forum for more detailed analysis of key issues. Each committee comprises a minimum of three Non-Executive Directors of the Newcrest Board. All directors receive meeting papers for each Committee and non-member directors are invited to attend Committee meetings. Details of Committee Charters, functions and membership can be found on the Company’s website.

Details on Newcrest Board and Executive performance evaluations are set out in the 2014 Annual Report.

On 18 June 2014, Newcrest announced that it had reached a settlement with the Australian Securities and Investments Commission (ASIC) following the conclusion of ASIC’s investigation into Newcrest’s conduct leading up to its ASX announcement on 7 June 2013. Further information about the settlement is available on the Newcrest website.

In March 2012, Newcrest became a member of the World Gold Council. Newcrest will publish its FY2014 Conflict-Free Gold Report in line with the financial year reporting cycle and will seek the required external assurance of this Report in FY2015.8

8 Newcrest published its Conflict-Free Gold Report on 28 October 2014 for the FY2014 reporting period. The Report, together with its Independent Assurance Report, can be located on our website at http://www.newcrest.com.au.

Our focus areas

1 Material Issue: Increasing focus of governments on the resources industry

2 Case Study: Lihir agreements and partnerships back anti-corruption and transparency

3 Case Study: Working with all levels of government for community benefit


Board of Directors

Board Committees

Executive Committee (ExCo)

Managing Director and Chief Executive Officer

Safety, Risk and Security

Health and Environment

Social Responsibility

Corporate Affairs

Human Resources

Training

Operations, Projects and Exploration

People and Communication

Sustainability and External Affairs

Site-based Health and Safety, Security, Environment

and Community personnel

Figure 3: Sustainability governance within Newcrest as at 30 June 201410

Other commitments and initiatives that demonstrate Newcrest’s commitment to sustainability include:

– Improving transparency and consistency in reporting financial costs. – The adoption of reporting the World Gold Council-led ‘All-In Sustaining Costs’, which discloses our production costs to our stakeholders, including governments, investors and local communities. – Becoming a ‘supporting company’ of the Extractive Industries Transparency Initiative (EITI). – Building and maintaining enduring relationships based on the recognition and respect for human rights. Newcrest has adopted Security and Human Rights policies

and applied for membership to the Voluntary Principles on Security and Human Rights during FY2014.9

– Operating in line with leading environmental practices. Newcrest is a signatory to the International Cyanide Management Code for the Management, Transport and Use of Cyanide in the Production of Gold. – Operating in a manner consistent with international leading practices and norms. Aligning key business areas (including environmental, social and safety) with the International Council on Mining and Metals (ICMM) Sustainable Development Principles (pages 5–6).

The diagram below illustrates how sustainability is governed at key levels within our business as at 30 June 2014.

Increasing focus of governments on the resources industryGovernments are increasingly interested in the resources industry as a source of revenue through increased taxes and royalties, changes to legislation governing mining activities or taking more direct control of mining assets.

In this environment, effective engagement with governments and other stakeholders is critical to develop a broad understanding of the impacts and consequences of adverse regulatory and fiscal change.

Mining is a long-term business with considerable investment risk. Substantial investments are made with no guarantee of discovery, development or operational success. If there is discovery success, then the time between discovery and production can be up to two decades.

Prices and costs can change in this period, which dramatically alters the economic returns to the company making that investment.

Therefore, fiscal and regulatory stability and certainty of the host country are critical factors for resource companies in assessing whether or not to make such long-term, large capital value investments.

Long-standing established relationships, responsible operation, host community support and effective industry bodies all help the industry to explain the importance of certainty and the potential impacts of regulatory and fiscal change.

Newcrest strives to build relationships with our stakeholders (such as host communities and governments, investors and shareholders), including by improving our transparency within adopted governance rules.

In this regard, Newcrest became a supporting member of the Extractive Industries Transparency Initiative (EITI) on 23 September 2013. EITI member countries where we operate are Indonesia, CÔte d’Ivoire and, now, Papua New Guinea.

Newcrest also seeks to have input into the development of relevant government policy mainly via membership of industry bodies in the various jurisdictions in which we operate. From time to time, Newcrest will also make submissions and representations in its own right.

9 Subsequent to the reporting period, Newcrest became a member of the Voluntary Principles on Security and Human Rights in August 2014.

10 Subsequent to the reporting period, the following changes occurred at Newcrest’s senior level: n On 18 August 2014, Philip Stephenson joined Newcrest as General Manager Health, Safety, Environment and Security, reporting directly to the Managing Director

and Chief Executive Officer. Geoff Day, EGM Sustainability & External Affairs, departed Newcrest on 12 September 2014. n EGM Human Resources and Communities, Jane Thomas, joined Newcrest on 5 January 2015. Debra Sterling, previously EGM People and Communications,

left the Company on 4 July 2014.

Sustainability Governance continued

CASE STUDY

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CASE STUDY

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Lihir agreements and partnerships back anti-corruption and transparency

Working with all levels of government for community benefit

The Namosi Joint Venture partners with government to deliver meaningful sustainable projects that are improving the local standard of living.

The Namosi Joint Venture (NJV), as part of its commitment to engaging with local communities in the district of Namosi and Waidina, provides assistance and support to sustainable projects that improve the local standard of living. In most of these projects, NJV works with the relevant government departments as joint partners or advisors.

NJV regularly speaks with all levels of government, from central to provincial level, as well as with the villages, to ascertain what plans the government has, what the villagers want, and how NJV can best complement or assist relevant projects.

Community infrastructure projects, including the Namosi District Electrification scheme which has brought electricity to an area previously reliant on generators for power, are made possible by financial support from NJV to the local villages. The financial support allows the villages to pay their five percent community contribution required by the Government for the various projects to proceed.

NJV also works with the government on capacity building and livelihood projects, such as the joint initiative to work with the Namosi Farmers Group to raise farming

Newcrest is committed to supporting the Papua New Guinea Government to improve transparency and accountability at all levels of the community.

Newcrest acts with integrity and honesty when conducting business, in a manner that promotes transparency in business dealings. In September 2013, Newcrest became a Supporting Member of the Extractive Industries Transparency Initiative (EITI), a global coalition of governments, companies and civil society working together to improve openness and accountable management of revenues from natural resources. Newcrest is committed to supporting the efforts of the Papua New Guinea Government to improve transparency in the flow of revenues and benefits generated from the resource sector to government. The Papua New Guinea Government is also a stakeholder of EITI and was admitted as a Candidate Country in March 2014.

The Newcrest Country Manager in Port Moresby is a member of the Papua New Guinea EITI Multi-Stakeholder Group (MSG), further demonstrating the alignment between Newcrest and the government’s efforts.

The implementation of the EITI principles and standards in Papua New Guinea will be developed and monitored through the MSG, who will be encouraged to explore innovative approaches to increase the comprehensiveness of EITI reporting and public understanding of revenues, and to encourage high standards of transparency and accountability in public life, government operations and in business.

In June 2014, Newcrest supported employees and community members on Lihir Island to participate in the Sir Anthony Siaguru Walk Against Corruption, an annual event held to support the anti-corruption work of Transparency International Papua New Guinea.

Newcrest partnered with Transparency International and the Lihir Youth Sports Association to plan, organise and stage the walk, under the theme of ‘Zero Corruption – 100% Development’.

Newcrest is pleased to support events such as these, aimed at fighting corruption through promoting greater transparency at all levels of the community.

The event also strengthened the existing partnership between Newcrest and the PNG Chapter of Transparency International, a globally recognised organisation aimed at stopping corruption and promoting transparency, accountability and integrity. Transparency International is also a member of the EITI MSG in Papua New Guinea.

standards from subsistence to semi-commercial levels. The Department of Agriculture worked with the group of local farmers via extensive classroom and field training, and NJV provided funding assistance towards farming implements and agricultural inputs such as fertiliser. As well as capacity building within the local community, the program aims to boost crop production to address food security and to provide a sustainable source of income, improving living standards and well-being.

These projects are tangible examples of the government and NJV combining forces to deliver a meaningful difference to people’s lives.

In FY2014, NJV provided USD97,000 in support to the local communities via these types of projects, across education, agriculture, infrastructure, training and empowerment, and capital projects.

NJV’s proven ability to work with both the community and government has facilitated the completion of projects in a way that hasn’t been achieved in the community previously, increasing the integrity of NJV and strengthening the relationships between the parties.

The approach is in line with Newcrest’s policy of developing long-term relationships with host communities and governments, with the aim of mutual understanding, acceptance and trust.


Our Economic Responsibilities

Newcrest is committed to supporting positive economic and social outcomes in the regions where we operate.

Sustainable benefits for local communitiesNewcrest’s strategic framework focuses on the creation of shareholder value to ensure an economically sustainable business. This means that in order for our stakeholders to benefit, our operations must be profitable in order to provide stability for our employees, stakeholders and our business. Our strategy to build a portfolio of predominantly long-life, low-cost assets that can remain profitable through various stages of the gold life cycle assists our longevity in our host communities, enabling opportunities to provide long-term community benefits.

Being profitable is important to our ability to contribute to economic growth and human development in the communities in which we operate through generating employment and contributing to physical infrastructure, for example health and education facilities.

Despite challenges during the reporting period, Newcrest was able to deliver a range of direct and indirect economic benefits to local, state and national governments through the payment of taxes, royalties and rates. Payment to governments in the form of corporate income tax, dividend withholding tax and royalties for the reporting period were approximately A$248.4 million as illustrated by site in Graph 1.

Our focus areas

1 Material Issue: Sustainable benefits for local communities

2 Case Study: Working together towards long-term partnerships, progress and agreements at Telfer

3 Case Study: Creating a self-reliant community

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Graph 1: Payments to governments (non-recoverable only)* (A$M)FY2014

*Values quoted are on a cash payments basis.


Newcrest employees are paid well above the minimum wage in their country of operation. This is not only to attract and retain employees within a competitive market, but to also help strengthen local economies on top of direct government and community payments. Graph 2 below shows the average entry level wage expressed as a percentage of the local minimum wage. A total of A$575.8 million in employee salaries and wages was paid during the reporting period.

In addition to these payments to governments, we also provide a range of direct benefits to communities which, as presented in Graph 3, amounted to approximately A$97.3 million in the reporting period. This expenditure includes payments made under land owner and land use agreements, direct investment to local communities, donations made to charities and our costs in running our community relations departments. The FY2014 level of expenditure was slightly lower than FY2012. FY2013 expenditure included several non-recurring payments in the context of long-term arrangements with Lihir landowners.

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Graph 3: Total community expenditure (A$M)FY2011 – FY2014

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Graph 2: Average entry level wage of local minimum wage (%)FY2014

CASE STUDY

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Telfer General Manager Steve Cowle with long-time Telfer Community Relations team member.

Telfer is located in the Western Desert of Australia, home to the traditional land owners, the Martu, a community of some 2,500 people spread across thousands of kilometres of land surrounding Telfer.

In September 2002, the Martu people were granted Native Title to 136,000km2 of the Western Desert region. Specifically, the Federal Court determined that the Martu hold Native Title rights and interests, including, among other things, the right to control access to, and activities conducted by others on, the land and waters of the determination area. Importantly from Newcrest’s perspective, the Federal Court determined that Native Title did not exist in respect of most of the land leased by the state to Newcrest prior to 1994.

In 2003, Newcrest signed three formal agreements – a ‘Community Benefits Agreement’, an associated ‘Infrastructure Corridor Agreement’ and a ‘Memorandum of Understanding’ – with the Martu, committing to provide a range of benefits, including training, employment and business development opportunities; community development initiatives for the Martu communities in the Telfer region; financial and other benefits to the Martu communities; and a process for allocating funds towards community development projects.

Beyond satisfying the formal requirements of these agreements, Newcrest wanted its initiatives to help individuals within neighbouring communities be healthier, better educated and meaningfully occupied.

Over the past 12 years, Newcrest has invested significant money, as well as resources, intellectual ‘know-how’, administrative support and services to deliver on the commitments made to the Martu.

Some of the highlights in FY2014 include: – An increase in employment of Indigenous people at Telfer over the period, with approximately 40 Indigenous employees during FY2014. – Development and delivery of the Western Desert’s first community-driven regional sport and recreation program, with many programs, clinics and sport and music festivals delivered in seven remote Indigenous communities.

Since 2003, Newcrest has delivered on long-standing commitments to traditional land owners, the Martu, providing benefits, including training, employment and community development.

Working together towards long-term partnerships, progress and agreements at Telfer

– Ongoing employment of local Indigenous Sports Development Officers and Martu Community Recreation Officers. – Monthly administration and negotiation funding provided to the Western Desert Lands Aboriginal Corporation (WDLAC). – Support of a fresh fruit and vegetable supply program, providing a monthly provision of fruit and vegetables to the Punmu, Kunawarritji and Parngurr communities and the RAWA School. – Redevelopment and reimplementation of an extensive Cultural Awareness program for Telfer employees and contractors. – Ongoing support through infrastructure projects, education and scholarships, and funding and logistical support for events, celebrations, funerals and capacity-building opportunities for community members. – Facilitation of many community and regional meetings in Telfer relating to consultation, education, sport, music and training.

Further to the 2003 Agreements, Newcrest and WDLAC have sought to conclude a comprehensive land use agreement, now known formally as an Indigenous Land Use Agreement (ILUA). An ILUA is a voluntary agreement between a Native Title group and others about the use and management of land and waters that allows people to negotiate flexible, pragmatic agreements to suit their particular circumstances.

During FY2014, progress was made on the negotiations, and Newcrest remains committed to working with WDLAC to ensure an ILUA that is acceptable to all stakeholders is ultimately signed.

Our Economic Responsibilities continued

CASE STUDY

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PTNHM’s CSR team works closely with the community.

PT Nusa Halmahera Minerals (PTNHM) is committed to working with the communities close to Gosowong to plan for mine closure in line with government regulatory standards, and above and beyond those requirements to set the local community up for self-sufficiency, regardless of the mine’s future.

The Gosowong gold mine currently encompasses the Kencana and Toguraci underground mines. Based on existing reserves, it is estimated that mining at Gosowong will continue for several years, subject to a variety of economic and operational factors. Exploration continues to identify more gold deposits to extend the mine life.

While it is possible that the mine could be operational for years into the future, PTNHM is committed to working with the community to plan for eventual mine closure in line with government regulatory standards, with a key aim being to assist the local community build self-sufficiency regardless of the mine’s future.

PTNHM has a mine closure plan covering safety, rehabilitation, employees, hazards, environmental engineering, equipment and post-mine land use. During FY2014, PTNHM met with community members, governments and other stakeholders to consult on the mine closure plan.

Since 2007, one percent of PTNHM’s annual gross revenue is allocated to its Corporate Social Responsibility (CSR) program. In FY2014, this equated to USD4.44 million.

A proportion of this money is directed towards a socio-cultural development program of education, health, infrastructure and social activity projects, with each of the 84 villages in the five sub-districts surrounding the operation receiving a per capita allocation.

PTNHM’s CSR team works with each of the villages and the subdistrict head to ensure the projects will not overlap with government projects. The CSR team and the villages prioritise their projects, calculate budgets, scope out works and set up contracts where necessary. This form of capacity building, whereby each village is empowered to select and manage their own projects, has resulted in a high rate of project completion, with highlights including education support, provision of school equipment, capacity building for teachers, free medication, village sanitation facilities, clean water, installation of electricity, village development, housing improvements, low income housing and road access.

Creating a self-reliant community

A component of the money is used specifically towards education support, with 2,225 university places funded each year to eligible students from the 84 villages.

Under direction of the community leaders, a target has been set for a proportion of the CSR budget to be directed towards the Sustainable Economic Development (SED) program, which aims to increase sustainable economic activities and create entrepreneurs within the local communities. In FY2014, 26 percent of the CSR budget was expended on various SED initiatives. Community members are supported to run their own businesses and are given the opportunity to increase their business knowledge, expertise and standard of living.

From 2010 to 2013, the SED program focused on planning, engaging the community, and production and agricultural processing. During FY2014, the SED program developed a system and process to increase self-sufficient sustainable economy; assisted with the establishment of community businesses; improved infrastructure to support the community business process; and built a business centre, which will be expanded to include an education and learning centre in the future.

While the SED program commenced with development of a range of business initiatives in agriculture, fishery and cattle breeding projects, it has become apparent that due to factors such as ease of growth and processing and favourable domestic market conditions, the production of cassava will be a priority business. You can read more about this success story on page 27.

Looking to the future PTNHM will be aiming to further increase the independence, local control and sustainability of the SED program community businesses and to expand the opportunity for other potential business opportunities, all with the ultimate aim of assisting the community in improving the local quality of life and for preparing for independence beyond, and regardless of, the life of the Gosowong mine.


Our Environmental Responsibilities

Newcrest aims to achieve an excellent standard of environmental performance in all its business activities in accordance with the Newcrest Environmental Policy.

Newcrest’s environmental strategy and performance are overseen by our Board’s Safety and Sustainability Committee.

Newcrest’s Environmental Policy underpins our commitment to sustainable environmental management and defines our approach to inform and consult with local communities, comply with applicable environmental laws and regulations as a minimum standard and integrate environmental management into all levels of the business. Our Environment Policy can be found on our website at www.newcrest.com.au.

Newcrest manages biodiversity aspects in accordance with our Environmental Policy and standards. For each site, we review protected areas and species within the region and develop management plans to mitigate potential impacts. Surveys are undertaken prior to land disturbance for protected species or habitats. Where identified, these are managed appropriately in accordance with site-specific plans.

At a regional level, Newcrest actively participates in industry forums and engages with regulators to review emerging environmental policies and legislation to provide feedback that can improve industry performance (e.g. through the Minerals Council of Australia and Papua New Guinea Chamber of Mines and Petroleum). Newcrest is also a member of the Business and Biodiversity Offsets Program and International Network for Acid Prevention.

By promoting the sustainable and efficient supply and consumption of energy at our mine sites, we make a positive contribution to the environment. Efficient energy management leads to a reduction in overall emissions intensity while improving the economic sustainability of our operations. As part of Project ‘Edge’11, a number of new initiatives were introduced during the reporting period, focusing on improving energy use across the Company.

11 Project ‘Edge’ was introduced during the reporting period to improve business efficiency and operational discipline. Edge also promotes bottom-up innovation so as to generate valuable new ideas across the business. Validated ideas are centrally tracked and regularly reviewed by a steering committee (‘EdgeCo’) to ensure commitment to delivery for optimal business value.

Our focus areas

1 Material Issue: Managing our environmental impacts (water, mine closure, rehabilitation)

2 Case Study: Long-term focus delivering leading practice rehabilitation

3 Case Study: Telfer progresses to mesa landform rehabilitation


Some of these initiatives include the following: – increasing fuel efficiency through replacing fluorescent, tower light, Fontana light and high bay light fittings with LED lighting; – trialling coarser grind sizes in the processing plant, reducing the energy demand per tonne treated; and – expert energy audits across all sites, including a specific geothermal review at Lihir and an energy efficiency review at Cadia Valley. Further efficiency reviews are being scheduled for the Lihir and Telfer mines.

In addition to these business improvement ideas, Newcrest continues to operate efficiently. At our Telfer mine, power is generated from low emission gas turbines. The Lihir mine operates a geothermal power plant to offset energy requirements, and electricity for the Hidden Valley and Bonikro mines are purchased from hydro-power sources.

All Newcrest operating sites other than Cadia Valley use cyanide as a reagent. In recognition of this, Newcrest is a signatory to the International Cyanide Management Code for the Manufacture, Transport and Use of Cyanide in the Production of Gold (ICMC or ‘the Code’), which was developed by a multi-stakeholder steering committee under the guidance of the United Nations Environmental Program and the International Council on Metals and the Environment. The objective of the Code is to improve the management of cyanide used in gold mining and assist in the protection of human health and the reduction of environmental impacts. Newcrest actively manages risks associated with transport, handling and use of cyanide at our sites. Ongoing progressive implementation of the ICMC is intended that on a risk based approach, the ICMC can add value to our existing management systems. Gosowong, Telfer and the Lihir transport chain are certified to the Cyanide Code. During the reporting period, Hidden Valley achieved formal external certification to the Cyanide Code. To support implementation of the Cyanide Code at Lihir, an ecological and biological risk assessment for the Deep Sea Tailings Placement system was conducted that was peer reviewed and approved by an independent panel. Further engineering works have been identified by Lihir to meet elements of the Cyanide Code and the International Cyanide Management Institute governing body has been notified of progress. The Bonikro Mine supply chain has been internally assessed against the Cyanide Code and the site considers elements of the Code during progressive improvement projects.

Waste rock and tailings are our two largest waste streams and ongoing management is required to ensure long-term geochemical and physical stability. Other waste streams include tyres, batteries, scrap steel, sewage sludge, medical waste and waste oil.

Waste rock is barren (non-mineralised) rock that is too low in grade to be mined and milled economically. Waste rock is stored in engineered structures or may be used in mine construction activities (e.g. at Lihir waste rock forms part of a harbour-side platform).

A waste related challenge for the mining industry is Acid and Metalliferous Drainage (AMD). AMD can result from oxidation of sulphide minerals which occur naturally in the rock. AMD is particularly relevant for our sites in high rainfall areas with sulphide bearing mineralogy. A key component of our AMD management system is the requirement for site-specific AMD Management Plans. We participate in the International Network for Acid Prevention (INAP), an industry association that aims to reduce the risks associated with AMD through information sharing, collaboration, research and technology transfer.

Tailings are the waste material from ore after the economically recoverable metals and minerals have been extracted. At Hidden Valley, Bonikro, Gosowong and our Australian sites tailings are stored in engineered tailings storage facilities (TSF). The TSF at Hidden Valley is the first to contain all tailings for a major open pit mining operation in PNG. At Lihir disposal of tailings is undertaken via deep sea tailings placement (DSTP).

In FY2014, the total amount of waste rock was 62,058 kt and the amount of tailings was 57,596 kt.

Managing our environmental impactsNewcrest recognises that environmental performance is a critical component of our business. Newcrest’s commitment is to not only maintain but enhance our ‘licence to operate’ and our goal is to go beyond compliance and adopt a leading practice approach. Newcrest is committed to monitoring and managing the environmental impacts of our activities to secure a sustainable environmental future for communities surrounding our sites, even after our operations cease.

WaterWater management has potential social, economic and environmental impacts and ongoing management of water use is vital to maintain our license to operate. Water used at Newcrest’s sites is extracted from different sources dependent on availability, climatic conditions and environmental sensitivities.

Under our environmental management program, water supply, quantity used and quality are monitored by our sites and plans are developed for stormwater management and recovery from extreme events. Water monitoring programs extend to local catchments, including downstream creeks or streams. Mitigation of potential impacts on water quality, such as sediment load, salinity, metals and hydrocarbons are addressed via control measures at the source, including engineered controls and application of handling procedures.

During the reporting period, as a part of the project extensions to the Cadia Valley under the Cadia East mine, Newcrest has upgraded and augmented Cadia Valley’s water management and supply system, and constructed a new dewatering facility.

During FY2014, Newcrest extracted a total of 325,351 megalitres (ML) for use at its operations. This includes groundwater, surface water from adjacent rivers or creeks (while maintaining environmental flows), and recycled waste water from nearby towns. In addition to this, 226,929 ML of seawater was extracted at Lihir.


Following a comprehensive risk assessment of social, environmental and safety aspects, Deep Sea Tailings Placement was chosen as the preferred tailings management method for Lihir. The PNG Government approved DSTP as the most appropriate method of disposal and set stringent compliance requirements to manage potential impacts on the surrounding environment. Regular monitoring is undertaken by the mine (validated through independent external studies) to verify the operational performance of the system.

Our operations recycle a component of the daily volume extracted to reduce overall water consumption. Waste water is generally recycled for use within process plants, by mining equipment or for dust control. The ability to recycle process water is subject to a number of operating constraints. For example, at Lihir, recycling process water is limited due to the process plant’s sensitivity to chloride (salt). Water extraction and discharge is monitored and reported for each site.

The total volume of water discharged from sites (excluding exploration) was measured at 291,415 ML over the reporting period, which includes water use and rain water that has been in contact with the site. Some 90 percent (262,359 ML) of the discharge volume was associated with the discharge of return seawater, which is used for cooling the power station and oxygen plants at Lihir. Each year, further opportunities or improved water use efficiency are identified.

As a member of the Minerals Council of Australia (MCA), Newcrest has endorsed the adoption of the MCA’s Water Accounting Framework for the Minerals Industry. The framework provides a consistent methodology for communication on how an operational facility utilises water.

Mine closureMine closure planning presents a key social, environmental and financial risk to the business and requires integration with mine planning, tailings management and mitigation of potential AMD impacts to reduce the possibility of legacy issues at eventual closure. Closure plans have been developed by sites to meet regulatory, corporate and financial reporting requirements. The Newcrest Closure Standard was reviewed and updated in January 2014 to align with international guidelines for good practice.

Ongoing challenges for the Group in relation to closure planning include progressive rehabilitation to reduce the scope of activities at eventual closure; improving the level of understanding on stakeholder expectations for closure through timely consultation; and adapting closure plans to changes in mine plans. Annual reviews of cost estimates and provisions and regular full updates of plans in accordance with the requirements of the Closure Standard assist to mitigate these risks.

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Graph 6: Total water discharged (ML)FY2011 – FY2014

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Our Environmental Responsibilities continued

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Comprehensive planning, experience and research combine to ensure Cadia Valley’s long-term rehabilitation projects are a success.

Significant progress was made on the rehabilitation of Cadia Valley’s South West Rock Dump in FY2014.

At Newcrest’s Cadia Valley, a long-term focus on mine closure and risk mitigation drives leading practice in the rehabilitation of potentially acid forming waste rock stockpiles.

In FY2014, significant progress was made on the rehabilitation of the South West Rock Dump (SWRD), with the three-year project to rehabilitate the 146-hectare area due for completion in June 2015.

A ‘store and release cover system’, used successfully in the completed rehabilitation of Cadia Valley’s North West Rock Dump, is being utilised for the rehabilitation of SWRD. The cover system was designed by Cadia Valley to minimise the infiltration of rain water into the potentially acid forming material and to meet the established leachate water quality targets based on the Australian and New Zealand Guidelines for Fresh and Marine Water Quality.

In line with Cadia Valley’s long-term and comprehensive approach, planning for the rehabilitation of the SWRD commenced in 2010, with the cover system design drawing on data from site-based physical and geochemical waste rock assessments, waste rock dump monitoring results, an extensive column leach program and site vegetation characteristics. The modelling outputs were then combined with a 100-year climate database, a 250-year erosion prediction model and Cadia Valley’s waste rock dump final landform design.

Long-term focus delivering leading practice rehabilitation

As part of the construction of the cover system, detailed monitoring sensors were installed in FY2014 to assess the performance of the cover system against the modelled outcomes. Meteorology, moisture, suction, temperature, lateral (sub-surface) flow and surface flow are all monitored by the sensors, while vegetation establishment and successional changes are monitored against agreed mine closure criteria developed from a similar reference vegetation community.

Also in FY2014, Cadia Valley completed a PhD study in collaboration with Charles Sturt University into the potential of locally occurring Indigenous wetland species further improving leachate quality through constructed wetlands.

Outcomes of the research are promising with several wetland species demonstrating an ability to absorb metals and improve water quality over time. While this site-specific research is in its infancy, ongoing research, including the scaled up construction of a ‘trial’ constructed wetland, will further inform Cadia Valley’s mine closure and rehabilitation plans.

RehabilitationThe Newcrest Environment Policy includes an overarching company objective to ‘rehabilitate sites or areas disturbed by company activities to comply with the applicable Environmental Management Plan’. Rehabilitation of disturbed areas is an expectation of regulators for successful closure management and relinquishment of sites. Rehabilitation is also an expectation of our stakeholders and is important for maintaining our social licence to operate. Progressive rehabilitation that is integrated into mine plans can help to efficiently reduce the potential scope and cost of rehabilitation required at mine closure.

The approach adopted by Newcrest sites for progressive rehabilitation is aligned with the expectations of regulators and stakeholders while taking into account the availability of operational areas based on mine plans. This includes consideration of whether future mining is likely to affect specific areas of the mine footprint so that rehabilitated areas are not re-disturbed at a later date. Each of Newcrest’s operations has planning processes in place to monitor regulatory requirements for rehabilitation, map changes in the operational footprint of each mine, identify areas available for progressive rehabilitation and carry out rehabilitation work.


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CASE STUDY

The 10-year mesa landform research project involved construction of three separate mesa slope trials.

A mesa landform rehabilitation strategy is to be adopted at Telfer following completion of a successful 10-year research project.

Telfer progresses to mesa landform rehabilitation

A 10-year research project at Telfer involving the design and management of large waste rock dumps has resulted in the adoption of a mesa landform rehabilitation strategy in Telfer’s revised Mine Closure Plan (MCP) submitted in June 2014.

The three yearly review of the MCP was developed in line with the Department of Mines and Petroleum guidelines, with a major objective of the review being the implementation of the mesa landform rehabilitation strategy.

During the mesa landform research project, which commenced in 2004, three separate mesa slope trials were constructed. The project incorporated botanic characterisation and function, landform evolution, topsoil, seed and weed research programs, as well as progressive rehabilitation trials focused on replicating the natural mesas of the Pilbara region. Its aim was to provide sound scientific advice on the construction of sustainable waste rock landforms that ensure the stability of mine waste material, prevent acid drainage and re-establish ‘natural’ ecosystem and land formations.

The research project was a success, with the findings showing the mesa landform rehabilitation strategy has a number of advantages over traditional waste rock dump rehabilitation methods. Benefits include a smaller footprint for the waste rock dump, with an associated reduction in land disturbance and costs. The resulting landform is sustainable, has greater environmental benefits and fits visually with the natural landscape. Critically, the results showed the strategy was stable, supported vegetation and met government approval criteria.

Full scale implementation of the mesa landform rehabilitation strategy is an improvement from waste rock dump rehabilitation methods traditionally used in the Western Australian mining industry.

As a result of the successful 10-year research project and regulatory approval achieved in 2014, a three-year rehabilitation program, utilising the mesa landform rehabilitation strategy and encompassing 90 hectares, has now been integrated into Telfer’s surface mining operations.

The strategy will continue to be refined to incorporate future results of investigations and research.

Our Environmental Responsibilities continued


Newcrest’s approach to managing our social responsibilities is defined by our corporate framework, specifically our Community Policy and Community Standards that drive a consistent approach across our sites.

The key principles guiding our approach to community relations as expressed in our Communities Policy are to:

– Identify the cultural values, traditions and beliefs of the communities, including indigenous peoples, and respect and respond to those values and belief systems; – Be open and transparent in all dealings with communities and in describing and explaining potential social and environmental impacts that might occur;

– Seek broad community support for our activities; – Commit to developing long-term partnerships that are mutually beneficial over a life of mine time scale; – Ensure that communities are fairly compensated for impacts and obtain a fair share in the benefits generated by a development; – Work to apply internationally recognised principles of best practice in all fields of endeavour; – Newcrest will at all times adhere to the laws and regulations of the country in which it is operating.

These Community Standards are as follows:1. Community Baseline Studies Standard2. Socio-economic Impact Assessment Standard3. Community Strategic Plans Standard4. Stakeholder Engagement Standard5. Land Access and Compensation Standard6. Community Relocation Standard7. Cultural Heritage Standard8. Community Investment Standard.

The flexibility to understand and respond to local customs, practices and knowledge is a key feature of our approach. We draw on the experience and knowledge of our local community relations teams, who are pivotal in maintaining on-the-ground relationships and understanding community needs, concerns and opportunities and in translating the high-level framework of the standards into locally applicable and appropriate actions and programs.

Our Social Responsibilities

As we have grown and expanded internationally, our community relations approach has necessarily changed in line with our more global and socially complex context.

Our focus areas

1 Material Issue: Social and economic development

2 Case Study: Cassava crop grows from strength to strength

3 Case Study: Hiré community radio providing a voice

4 Material Issue: Respecting human rights

5 Case Study: Lihir says ‘NO! to Violence Against Women’

6 Case Study: NJV working with local communities to address gender inequality


Social and economic developmentWe endeavour to develop and maintain positive relationships with the local communities where we operate. As part of this, we strive to have a positive impact on the social and economic development of these communities. The main instrument through which we aim to achieve this is through our community agreements. At our international sites in particular, the Company has in place formal agreements with the local community that detail the benefits that will be provided to the community, over and above the minimum compensatory regime, in return for their support.

These agreements therefore reflect the desires and priorities of the community, as well as those of the Company. The type of programs and projects included are:

– capacity building, through educating (e.g. offering scholarships, building and investing in local schools) and employing local community members, improving community health through education and site-specific projects, building and maintaining partnerships that look after the short- and long-term interests and concerns of local communities, and working together to drive bottom-up planning; and – enabling and empowering the local communities, so that skills learned through involvement in local activities and projects during the life of the mine can be applied to independent business opportunities, e.g. business spin-off, business training through capacity building, and project investment, such as the cassava project on page 27.

Key principles of strong community relations is the presence of dedicated personnel to:

– regularly meet with local community members to discuss and listen to their concerns, and seeking ways to develop solutions to meet the community’s needs; and – acknowledge the legacy of our business where we operate, being mindful of the long-term impacts local communities are faced with, and working together to ensure community benefits are maintained long after mine closure.

Community agreements between the operations and the communities in which we operate also remain an important mechanism to ensure that Newcrest is supporting community programs that are sustainable and aligned to the needs of the community. During the year, formal reviews of our existing community agreements at our Lihir, Hidden Valley and Telfer operations were progressed.

Newcrest has continued to focus on and prioritise our community commitments, irrespective of the challenging economic climate that continued throughout the reporting period. Our level of financial support to community initiatives was comparable to last year when compared to revenue.

In the reporting period, our overall expenditure on benefits to local communities was approximately A$97.3 million. This expenditure includes payments made under land owner and land use agreements, direct investment to local communities, donations made to charities and our costs (including salaries and wages) in running our community relations departments. It does not include taxes, training and development and local business contracts.

Our approach to working with local communities, including the use of local suppliers, is guided by several policies. Newcrest’s Diversity, International Employees, Communities and Supply Policies variously focus on promoting and valuing diversity in Newcrest’s workforce, seeking to maximise direct local engagement in our operations through employing local people and engaging local businesses, where practicable, and ensuring that communities are fairly compensated and obtain a fair share of benefits from the relevant operations. Newcrest has no formal Company-wide policy for local supplier preference, but we do actively consider opportunities for purchasing goods and services from within the communities in which we operate. This is subject to practical, operational and financial efficiencies.

While our systems are not yet sufficiently mature to break down expenditure completely into geographical areas, we can report on approximate spend with local company entities within each country of operation, considered ‘in-country’ compared to what is spent with company entities outside of the country of operations. For the purposes of this Report, in-country is considered to be ‘local’. Of the total expenditure across the Newcrest group during the reporting period, 67 percent was spent locally.

The breakdown of expenditure and percentage spent as ‘local’ for each country is as follows:

– Papua New Guinea – 46 percent – Australia – 76 percent – Indonesia – 81 percent – CÔte D’Ivoire – 64 percent.

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Graph 7: Total community expenditure by site (A$M)FY2014

Our Social Responsibilities continued

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Workshops have been constructed for processing of the tapioca-based snacks.

Cassava is becoming big business in the communities surrounding Gosowong, with more than 900 locals now involved in the growing, production, processing and marketing of cassava in what is an increasingly sophisticated enterprise.

Cassava crop grows from strength to strength

One of the businesses resulting from Gosowong’s Sustainable Economic Development (SED) program is the production and processing of cassava. Cassava is a woody shrub, cultivated for its edible starch root, which when dried to a powder is referred to as tapioca. Cassava is easy to grow in this region and relatively easy to process. The flour made from cassava is used in noodles, a popular local food, providing an almost insatiable domestic market for the product.

This project is based on local farmers planting and producing cassava, which is then processed into a food additive and sold commercially. A processing and marketing endeavour, built on local knowledge and technology, supplemented by appropriate quality control and management practice, has been developed over the past two years. As at 30 April 2014, more than 900 members of the local community were involved in the growing, production, processing and marketing of cassava. The cassava business structure is split into three levels: the farmers who cultivate the cassava crops to provide the raw product; the three facilities responsible for processing the cassava into tapioca flour (washing the crop, skinning, chopping and grinding); and further processing, packaging and marketing activities.

During FY2014, a business centre was built to manage all business activity under the SED program, including the third stage of the cassava production. At the new business centre, the tapioca is further processed (dried, ground, dried again, ground again), packaged, marketed and shipped. In the future, the business centre will become the hub for business improvement as the community entrepreneurs running the cassava business, with the support of PTNHM, look for ways to improve the business further. This includes introducing technology to increase the production rate and quality of the crops.

The community entrepreneurs are also looking for potential product developments to increase the production and sale of their crops, including the use of tapioca flour for cookies and chips, cassava flour for chilli and tomato sauce, instant porridge, animal feed and biogas, and cassava skin for artificial fertiliser, animal feed and biogas.

Ultimately, it is envisaged the business centre will become an integrated learning centre to support business development in the local community, with eight classrooms already in place, as training facilities to be used for community farmer education.

The cassava business is the most successful of the agricultural businesses commenced so far under the SED program and is expected to increase to 75 percent of the program’s focus in FY2015.


The launch of new radio station WATTA FM provides the local community of 75,000 people with access to rapid and reliable information, 24 hours a day, seven days a week, for the first time.

Newcrest and the United Nations Development Program’s Local Development Plan continues to deliver projects that improve infrastructure, increase training and education and provide income-generating activities for the region in which the Bonikro mine is situated.

Radio station WATTA FM was officially handed over to the local Hiré community during April 2014, and is one of many projects delivered under Newcrest and the United Nations Development Program’s (UNDP)12 Local Development Plan, which covers one of the 32 regions of CÔte d’Ivoire within which Newcrest’s Bonikro mine is situated.

WATTA FM, Hiré’s new community radio station, provides the local community of 75,000 people with access to rapid and reliable information. It is the first community radio station in the area that operates 24 hours a day, seven days a week and provides mostly domestic information, such as local activities and programs, as well as entertainment, music and public announcements, capturing national news

CASE STUDY

↓Hiré community radio providing a voice

12 For further information on our partnership with the UNDP, please refer to the 2013 Newcrest Sustainability Report, located on our website at http://www.newcrest.com.au/.

13 Subsequent to the reporting period, Newcrest became a member of the Voluntary Principles on Security and Human Rights in August 2014.

Respecting human rights Newcrest respects the human rights of all stakeholders, including our employees, contractors and local communities. We seek to use our influence to prevent human rights abuses occurring in the vicinity of our operations, and will engage in dialogue with stakeholders and local communities to promote human rights. Human rights violations by our employees, contractors and/or any other persons or groups associated with our business will not be tolerated.

Newcrest has a Human Rights Policy and this will be implemented over the next year. The policy is intended to ensure that there is consistency with commitment, implementation and accountability across all of our business interest. This policy is also supported by the Security Policy and the Communities Policy. Furthermore, Newcrest applied for membership to the Voluntary Principles on Security and Human Rights during FY2014.13

The respect of human rights has always been part of the way we do business and is embedded in our Human Rights and Security Policies, as well as the Newcrest Code of Conduct and Diversity Policy. Part of the implementation process of the Human Rights and Security Policies is a review of the Company’s various internal procedures and processes, external business relationships and, where necessary, the integration of additional relevant human rights procedures and clauses into the way we do business.

Externally, Newcrest has already had human rights commitments scrutinised. As a member of the Minerals Council of Australia (MCA), Newcrest is a signatory to the Enduring Value Framework. This framework is based on the International Council on Mining and Metals (ICMM) Principles. The ICMM includes a commitment in principle three to ‘Uphold fundamental human rights and respect cultures, customs and values in dealings with employees and others who are affected by our activities’. This is reported on annually.

bulletins throughout the day and night for the local community that surrounds Hiré, a township approximately 15 kilometres from Bonikro.

The launch of the radio station brings access to information to a community that is reliant on voice media due to the area’s low literacy rate. It is a powerful tool for sustainable social cohesion, with radio programs promoting peace and reconciliation. With rapidly growing interest in serious global issues, such as the spread of the Ebola virus, WATTA FM has come at an important time to keep the local communities well informed.


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Lihir employees Juliana Toa, Margaret Yanda and Glenda Seckry are passionate about ending gender-based violence.

Following on from the significant work done at Lihir in FY2013 around violence against women, this important campaign has gained increasing traction at site and across the community during FY2014.

Lihir says ‘NO! To Violence Against Women’

Addressing violence against women is one of the critical current priorities in Papua New Guinea, with a significant campaign across the Lihir island group rallying community members, companies and organisations around the cause.

In November 2013, Lihir supported the annual White Ribbon Day, the world’s largest movement of men and boys working to end men’s violence against women and girls and to promote gender equality and healthy relationships.

During FY2014, the Newcrest employee ‘Say NO! To Violence Against Women’ Committee ran a campaign promoting awareness about relationship abuse and violence towards women and girls in the community and at home. The Committee met regularly to discuss issues relating to violence and to plan events to increase awareness around the issues.

Lihir provides the Committee with access to meeting rooms, audio visual equipment, communication and public relations support, and integration into site activities, such as Safety Week, to ensure maximum exposure to employee and community audiences.

In March 2014, the ‘Say NO!’ Committee held awareness and information sessions, drama activities, videos and presentations during PNG National Mine Safety Week. Employees, business partners, families and community members were invited to share their stories and thoughts on gender-based violence.

Members of the ‘Say NO!’ Committee were awarded the 2014 Newcrest Living Our Values ‘We Work Together’ Award (page 9).

In May 2014, the annual ‘Walk Against Violence’ was held, with over one thousand Lihir employees and community members joining together in a peaceful march against gender-based violence. Lihir employees were granted time off work by management in order for them to participate in the community event, with buses arranged to take employees from site to the march.

At the event, a petition was signed for presentation to the New Ireland Provincial Government and the Nimimar Rural Local Level Government to establish three integrated organisations to help victims of gender-based violence; a Family Sexual Violence Unit at the Police Station, a Family Support Centre at the Lihir Medical Centre, and a Meri Seif Haus, a safe house for women who are victims of domestic violence.

Since the end of the reporting period, a training program for gender-based violence counsellors has commenced and will be a major focus for the community in FY2015. The training program, coordinated by the Lihir Tutorme Women’s Association, funded by the World Bank, and supported by Newcrest through, for example, the provision of flights, transport and accommodation for trainers, is the direct result of feedback from the community who identified a need for counselling for victims of gender-based violence. At the conclusion of the training program, there will be 28 trained and certified counsellors in the community, seven of them Newcrest employees. Since the training program commenced, a Lihir Family Sexual Violence Committee (LFSVC) has been formed, comprising a mix of Newcrest and other stakeholders. A priority for the LFSVC is to set up a referral process for victims of gender-based violence to access the counselling and other services.


Niko Yacalevu, NJV Community Relations Manager (back row, second from left), and Greg Morris, NJV Country Manager, with members of the Seniqumu Women’s Club in Delailasakau village outside the newly re-opened Seniqumu Mothers Store.

CASE STUDY

↓NJV working with local communities to address gender inequality

The Namosi Joint Venture (NJV) is helping raise awareness within local communities of domestic violence issues, as well as increasing the independence of women through education and training programs.

The Namosi Joint Venture (NJV) works closely with the local government, specifically the Department of Women, to encourage them to help address gender inequality and violence within the local community. Unreported issues of violence and abuse against women and children are regularly highlighted as a major community issue to NJV during Namosi provincial and community meetings between NJV and the community.

As a result, an awareness and empowerment program was brought to the villages of Namosi and Waivaka towards the end of the reporting period. The program is run by the Department of Women in conjunction with other stakeholders, such as the Fiji Police Force, Family Law Court and Legal Aid, and was logistically and financially supported by NJV.

The objective of the program is to create awareness of gender-based violence, educate by providing information on domestic violence and child welfare, and to increase the understanding and commitment to Fiji’s Domestic Violence Decree (2009).

NJV continues to support women in our surrounding villages by providing educational and training programs that enable their independence. During FY2014, NJV held meetings with the women’s committee within the Delailasakau village to support the planning and reopening of a local store to serve as a women’s co-operative store. As a result, the store has been rebuilt and reopened, with a commitment by NJV that the women of the village be further supported in business and financial training during FY2015.

NJV also provides support in consultation with the Department of Women and Agriculture in the ongoing Naruaunibua Village Women’s Group Poultry Project.



Health and safety where we workThe health, safety and wellbeing of our staff and contractors are our highest priority, and we continue to make improvements to our systems and leadership capability in order to maintain this focus. In particular, we remain committed to preventing fatal incidents and life-changing injuries and illnesses.

Sadly though, in December, we tragically lost one of our workforce in an incident at Telfer when a contractor employee was fatally injured while undertaking civil works at the tailings storage facility.

Our Major Hazards Program continues to be the cornerstone of identifying and managing the risks of high potential incidents. The program includes detailed major hazard risk assessments for each site, involving representatives of the workforce identifying and evaluating major hazards, and developing an improvement plan to continually reduce the level of risk over time. The program also includes our peer-on-peer, management and executive safety interaction processes; our incident reporting and investigation procedures, particularly in relation to Significant Potential Incidents (SPIs)14; and assurance processes aimed at verifying the effectiveness of critical controls.

Risk reduction actions identified in the Major Hazard Risk Assessments and Major Hazard Assurance activities are tracked for completion, and completion rate is included as a key business measure. SPI investigation reports are reviewed following each incident, and the findings are compared to the Major Hazard Risk Assessment registers. This ensures that the registers have adequate coverage of the hazard, failure pathways and control frameworks through continuous review.

Communications and awareness programs support and promote the Major Hazards Program, and aim to ensure all personnel are familiar with the terms Major Hazard and Critical Control, and are able to focus primarily on these hazards and controls when performing pre-task risk assessments. Additional training to improve the quality of hazard identification and risk assessment was developed and implemented during the reporting period.

14 Serious Potential Incidents (SPIs) are incidents where the actual or likely potential outcome is a fatality, permanent disabling injury, irreversible or widespread health impacts or permanent damage to the environment.

Our Employee Responsibilities

We are fortunate to have a workforce consisting of skilled, committed and capable people who are collectively responsible for our success.

Our focus areas

1 Material Issue: Health and safety where we work

2 Case Study: A relentless focus on safety at Telfer

3 Case Study: Partnership to eliminate malaria progresses


15 Our Safety ReNew Strategy is focused on providing structures and systems so that all employees have the tools to work safely, together with the key leadership and behavioural traits to encourage people to work safely. We embed our approach through safety-focused production and prestart meetings, hazard reporting, near miss reporting, and supervisor competence training. Legislative requirements also guide our management and performance targets.

The Safety ReNew Strategy15 is held annually across the business each year, recognising the anniversary of the helicopter accident near Gosowong in August 2011 that tragically killed 10 people, including eight of our workforce. Safety ReNew day in 2013 was held across the Group on Wednesday 21 August. The focus of this event was to discuss Major Hazards directly with the frontline workforce, and to engage them in discussions about risk reduction ideas and health and safety improvement opportunities.

A range of Group-wide and site-specific health and safety improvements were implemented to address employee feedback gathered in the Safety ReNew meeting, including:

– site accommodation improvements at Lihir to help manage fatigue of our workers; – installation of an air cooling system at Gosowong to assist with the management of humid conditions underground; – implementation of a ‘Visual Safety Leadership’ program at Telfer to improve management interactions with the workforce around health and safety; and – a training and testing program at Cadia Valley to improve the fitment of hearing protection devices.

In health, we have a renewed focus on the wellness of our staff, with a particular focus on mental health.

Significant reductions in the workforce commenced during FY2013 and continued throughout FY2014 as a result of the completion of two major development projects, Cadia East Panel Care1 and Lihir Plant Expansion, and simplifying business activities in response to commodity price volatility and lower gold price environment. To complement the employee engagement activities during this process, a variety of support services were offered through the Newcrest Employee Assistance Program (EAP) to help manage these changes.

Separately, we provided education and awareness on physical and mental wellness with a series of workshops facilitated by an external provider at our Australian operations. The content of these programs was also shared with our overseas operations for consideration and adaptation to local cultural aspects.

Our Occupational Hygiene monitoring programs continued to be improved during the reporting period, ensuring our work environments are monitored and managed to reduce the risk of long-term health exposures.

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Our Employee Responsibilities continued

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A formal ‘Visible Safety Leadership’ program is just one of the safety improvements in place at Telfer.

Preventing fatal events and life-changing injuries and illnesses within Newcrest is a value-driven imperative. At Telfer, the strategic safety plan for FY2014 focused on driving ongoing safety improvement across the site.

A relentless focus on safety at Telfer

All of Newcrest’s employees and contractors understand that improving our safety performance and eliminating fatalities from the work place is paramount. Telfer’s employees and contractors have been engaged in reviewing and improving the systems around managing the major hazards.

The fatal incident at Telfer in December 2013 caused us to re-double our efforts to identify and manage major hazards, and to ensure we work effectively with our contractors in pursuit of these goals. Strategic safety improvement plans were developed at each site, in consultation with contractors and the workforce.

At Telfer, the strategic safety plan for FY2014 focused on driving ongoing safety improvement across the site. A formal ‘Visible Safety Leadership’ program was introduced to ensure managers are actively engaged in mentoring frontline employees and contractors, with all members of the leadership team completing an agreed number of quality safety interactions. The program has been effective in reinforcing that safety comes first. During the period, all frontline leaders at Telfer also completed a hazard identification training course to reinforce the importance of situational awareness through theory and by practice in the workplace.

Statutory compliance audits are ongoing at Telfer, with nine high impact function (HIF) audits (major hazard protocols provided by the Department of Mines and Petroleum) completed during the period. HIF audits examine the way in which certain functions with a high hazard potential are performed within an organisation and are completed to self-test our compliance with mining law and regulation.

Two major capital projects, with significant safety improvements, have been progressed during the period. A A$2 million program of works to improve conveyor and machine guarding across the site was implemented to reduce potential injuries around rotating or moving parts and a A$900,000 voltage-reduction project across areas of the process plant has seen our control systems reduced from 240 volts to 24 volts, helping minimise the electrical hazards associated with parts of the operation.

In addition to ongoing usage of hazard identification and behavioural-based safety observation tools, such as ‘See Stop Control’ and ‘PEER’ (People Eliminating Everyone’s Risks) across the period, Telfer completed a review of site-wide risk assessment and measures that are in place to control major hazards. The outcomes of this review have been used to form the safety plan for FY2015, which will have an emphasis on isolation management systems.


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A feasibility study conducted through Newcrest’s MMV partnership has shown elimination of malaria from the Lihir group of islands is possible.

Newcrest’s five-year partnership with the Medicine for Malaria Venture (MMV) assisted in achieving a significant reduction in employee malaria cases across the Company in FY2014.

Partnership to eliminate malaria progresses

Malaria is Newcrest’s most prevalent occupational disease and is a serious health concern for our employees and local communities in our operating areas of Papua New Guinea, Indonesia and Côte d’Ivoire. In FY2014, there was a significant reduction in employee malaria cases across Newcrest.

Newcrest’s five-year partnership with the Medicine for Malaria Venture (MMV) is one of our most important health programs. MMV is a non-profit organisation that works around the world conducting research and development towards eradicating the disease. The objective of our partnership is to develop and implement programs for malaria control at Newcrest’s sites, while supporting research into improved medicines for prevention and treatment.

The alliance has assisted with significant improvement in the operational management, diagnosis and treatment of malaria across all of Newcrest’s sites.

During FY2014, the third year of our partnership, a key initiative was the development of a feasibility study for malaria elimination from the Lihir group of islands, conducted by IS Global and the University of Barcelona. The study shows that elimination of malaria is feasible and defined the implementation steps.

The proposed four-year elimination program is currently undergoing preliminary planning activities, including community and government engagement, appointment of a project manager and PNG Government approvals.

Our Employee Responsibilities continued


Operations

Newcrest made steady progress during the year, increasing productivity and reducing costs. The Company is firmly focused on realising the full potential of its assets, and a Company-wide improvement program has been initiated, which includes a major review at Lihir.


The Cadia Valley is located in central western New South Wales, Australia, 25km south-west of the city of Orange and 250km west of Sydney. Cadia Valley is 100 percent owned by Newcrest.

Cadia Valley comprises Ridgeway underground and Cadia East underground mines. The Cadia Hill gold-copper porphyry deposit was discovered by Newcrest in 1992. Gold was first produced in 1998, and after 14 years of operation, the Cadia Hill open pit mine was placed in care and maintenance at the end of June 2012. The Ridgeway gold-copper mine, discovered in 1996, is located three kilometres from the Cadia Hill open pit. Production commenced from the underground sub-level cave in April 2002, and in 2010, Ridgeway transitioned to a block cave operation beneath the original sub-level cave.

The Cadia East deposit is a porphyry zone of gold-copper mineralisation adjacent to the eastern edge of the Cadia Hill ore body. It was discovered before Ridgeway and is one of the world’s largest gold and copper deposits. The Cadia East underground panel cave mine will be Australia’s largest underground mine, with a mine life of more than 30 years.

Cadia East has been developed as a large underground panel cave gold mine, the first of its type in Australia. At full capacity, it is expected to be the largest metalliferous underground mine in Australia and one of the largest in the world. Commercial production levels at Cadia East were achieved in January 2013 and the mine is expected to produce for the next 30 years. It is currently ramping up production towards its target of 26 million tonnes per year. Newcrest expects Cadia Valley Operation’s overall production to be around 700,000 ounces of gold in FY2016 and higher again in 2017.

Cadia Valley

Operations continued

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Cadia Valley and the local community have developed six tangible projects, handpicked to provide lasting benefit for the Cadia district.

Working closely with members of the community is key to the success of the Cadia District Enhancement Project.

Community chooses environmental and health programs to provide lasting benefits for district

The Cadia District Enhancement Project (CDEP) was implemented by Newcrest in 2012 to create environmental and community benefits for the Cadia district. The project aims to change the perception that living next to a mine has negative drawbacks, including property devaluation, by increasing the desirability of the district as a place to live and work, and to enhance the value of the area as an agricultural, mining and lifestyle choice.

Working together over the past 18 months, Cadia Valley and the Cadia district community have developed CDEP from a list of ideas into six tangible projects, handpicked to provide lasting benefit for the Cadia District.

During FY2014, the CDEP program made the following progress:

– Adding value to properties and lifestyles in the Cadia district by providing loyalty programs, which are only available to residents within the defined district boundary.

– Introduced a bi-monthly community newsletter, produced by Cadia Valley in collaboration with the local community. – Awarded an inaugural Cadia District scholarship valued at A$9,000 to a local community member studying a degree in Exercise and Sports Science. The scholarship program has evolved into an educational grants program which in future will offer co-funding towards a wide range of educational study including degrees, short courses, certificates, conferences and seminars. – Implemented a Cadia Valley preferred agistment protocol which ensures preference for Cadia District residents in the awarding of tenders for grazing rights on Cadia Valley-owned land.

– Providing a coordinated approach to weed and pest control and progressively reducing land management costs within the Cadia district.

– Introduction of free agronomy advice and weed identification programs for Cadia district residents. – Coordination and financial support for regional weed and pest control programs in the Cadia district.

– Adding value to the neighbouring properties of Cadia Valley by providing a weekly roadside rubbish collection service.

– Underwriting of a fortnightly roadside rubbish collection service for rural landholders in the Cadia district who previously had no access to waste depots or collection services.

– Creating a voice for the community by lobbying to create new infrastructure and improve district roads for the benefit of the Cadia district.

– Distributed a roads and infrastructure survey to the Cadia district community to determine focus areas for improvement. The results are used to lobby local and state bodies for additional funding in the district on behalf of the Cadia district community.

– Providing a heritage and recreational area with a viewing platform over Cadia Valley historic and modern mining operations.

– Cadia Valley has a significant heritage conservation area on its mining lease, which incorporates heritage listed mining infrastructure, as well as Aboriginal and agricultural district heritage. Cadia Valley has converted this area into an educational and recreational area with a self-guided walking tour, information booklet, interpretative signage and a viewing platform with views of the current Newcrest mining operations. Cadia district residents have been granted exclusive access to this area for their recreational use.


The Telfer gold-copper mines are located in the Great Sandy Desert in the Pilbara, Western Australia, approximately 400km south-east of Port Hedland. The Telfer mines are 100 percent owned by Newcrest.

The original Telfer mine commenced in 1977. Ongoing exploration identified a large, low-grade oxide Mineral Resource in Main Dome and to the north-west in West Dome, resulting in a mill expansion in 1986 and a dump leach operation from 1988. Additional reefs on the eastern flank of Main Dome were identified in the 1990s and mined using narrow vein underground techniques. Mining operations at Telfer were suspended in 2000 due to escalating costs and a gold price around A$300 per ounce.

Construction of the current operation commenced in early 2003, following a comprehensive feasibility study. Telfer now comprises an open pit and an underground mine. Open pit mining is currently focused on the Main Dome pit. The Telfer Underground is a sub-level cave mine beneath the Main Dome open pit with a 6 million tonne per year shaft hoisting system. Ore is combined in a large, twin train, flotation treatment plant, which produces gold doré and a copper-gold concentrate. During the year, a major cutback in the Main Dome open pit was completed which increased access to ore sources. Telfer also made steady progress increasing productivity and reducing costs.

In addition to the current operations at Telfer, Newcrest’s mining tenements in the area contain a number of other mineral deposits, including the O’Callaghan’s Tungsten and base metal deposit located approximately 10km from the existing Telfer processing plant. Pre-feasibility work on the commercialisation of this deposit is continuing.

Telfer


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Telfer will continue to monitor workers to determine the effectiveness of DPM controls.

Diesel particulate matter monitoring and action

In conjunction with the WA Department of Mines and Petroleum, Telfer has completed a large-scale study specifically examining the potential exposure of underground employees to diesel particulate matter (DPM).

Diesel particulate matter (DPM) is a by-product from the combustion process in diesel engines and is a potential carcinogen. Due to their small size, these particles are considered to be respirable (i.e. they can be inhaled into the lungs).

Potential risk of exposure to DPM exists where workers are near operating diesel equipment, with those working in underground mines having an increased risk of exposure due to the lack of open air.

In FY2014, Telfer completed a large-scale study specifically examining the potential exposure of our underground employees to DPM. This campaign was conducted in conjunction with the WA Department of Mines and Petroleum. The results from the monitoring were then statistically analysed to determine occupational exposure risk.

Detailed information was also collected through discussion with the underground work groups and from completion of questionnaires concerning work activities and the working environment over the course of the monitoring period, which extended over the total 12-hour shift.

Based on the outcomes of the study, Telfer plans to introduce leading practice DPM filter technology on specific underground vehicles, and will continue to monitor workers regularly to determine the effectiveness of controls.


The Lihir operation is located on the island of Niolam, 900km north-east of Port Moresby in the New Ireland Province of Papua New Guinea. The Lihir deposits are located within the Luise Volcano Caldera on the east coast of Niolam Island. The Luise Caldera is an extinct volcanic crater that is geothermally active.

Lihir is one of the world’s largest gold deposits, with an operational life projected to exceed more than 30 years. The Lihir operation is 100 percent owned by Newcrest, following the acquisition of Lihir Gold Limited (LGL) in August 2010.

The Lihir deposit was discovered in 1982 and extensively drilled prior to commencement of construction in 1995 and the commencement of gold production in May 1997. The operation employs a conventional open pit mining method comprising drill, blast, load and haul, and comprises a single ore body with three linked open pits: Minifie, Lienetz and Kapit. Ore is predominantly refractory sulphide ore, which is treated using autoclaves and a pressure oxidisation process before the gold can be recovered by a conventional leach process.

A major expansion of the Lihir process plant was completed in FY2013, which substantially replicated the existing process stream, including installation of an additional autoclave and milling equipment, oxygen production capacity, leaching capacity and flotation. This is designed to increase throughput and provide greater operational flexibility in treating the different ores and stockpiles within the Lihir system. A program to refurbish the original plant at Lihir has also essentially been completed.

Mining activity in the open pit reduced significantly in FY2014 with the majority of mill feed sourced from existing stockpiles to maximise free cash flow in a lower gold price environment.

Debottlenecking the expanded processing plant and reducing the cost base remain the two key focus areas at Lihir over the next 12 months.

Lihir


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Deep sea fish sampling is one of the many monitoring processes used at Lihir to ensure the ongoing health of the local ecosystem.

Results from fish sampling at Lihir during FY2014 indicated low risk to human health or to local ecosystems.

Deep sea fish sampling at Lihir

Run approximately every three years, and in addition to Lihir’s annual ‘close to shore’ sea grass and shellfish surveying, deep sea fish sampling allows the Company to ascertain and monitor the concentration of metals in pelagic fish, those that live in deeper water, further from the coast.

To complete the most recent round of sampling, the Lihir environmental team caught roughly 150 pelagic fish in the period August to September 2013, targeting a pre-determined species set in three distinct areas; close to the mine, up and down the east coast (near to the mine) and the west coast (the other side of the island to the mine) as a control group.

The fish were dissected on Lihir Island, the tissues and liver frozen, and then sent to government laboratories in Sydney, Australia, for testing. Results were shared with the PNG Department of Environment and Conservation as part of normal regulatory compliance monitoring.


Hidden Valley is a gold and silver mine located approximately 90km south-west of Lae in the Morobe Province of Papua New Guinea. Regionally, the goldfields district of the Morobe Province covers a portion of the Papuan Orogenic belt, which hosts a number of world-class gold and copper-gold deposits, including Porgera and Ok Tedi. Hidden Valley is owned by the Hidden Valley Joint Venture, one of three unincorporated joint ventures between subsidiaries of Newcrest and Harmony Gold Mining Company Limited, collectively known as the Morobe Mining Joint Ventures.

The Hidden Valley Mine consists of the Hidden Valley Kaveroi and Hamata open pits located approximately 6km apart, and an ore processing facility situated in steep, heavily forested, mountainous terrain. Both pits employ conventional load and haul mining techniques, with ore from the Hidden Valley Kaveroi pit then transported to the process plant via an overland conveyor. The ore treatment plant was commissioned in August 2009. Tailings from the processing plant are treated and stored in a purpose-built engineered Tailings Storage Facility (TSF). Hidden Valley is the first major open pit mine in Papua New Guinea to build a TSF to contain all tailings permitted under the Environment Act 2000. In May 2010, construction and commissioning of the Hidden Valley operation was completed and the production ramp-up commenced.

Hidden Valley


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Each year, Morobe Mining Joint Ventures (MMJV) undertake a comprehensive community liaison program. In FY2014 this included more than 800 consultative meetings, involving 15,800 stakeholders.

In FY2014, MMJV organised a three-week community visit with the government, reaching 30 communities and listening to the villagers’ concerns. Image courtesy of Morobe Mining Joint Venture.

MMJV continues to listen to the community

Stakeholder engagement is a vital part of how we do business. At Hidden Valley, Morobe Mining Joint Ventures (MMJV) manages a comprehensive community liaison program with the local communities, landowner associations and government, providing stakeholders with an opportunity to voice any concerns they may have directly to MMJV.

In FY2014, MMJV held more than 200 consultative meetings for Hidden Valley, involving 5,800 stakeholders from the region. Consultation across all MMJV activities during this period included more than 800 meetings, involving 15,800 stakeholders.

One of MMJV’s most effective communication tools is local community mine visits, where community leaders are invited to tour the operations. In FY2014, more than 250 local community leaders took the opportunity to learn first-hand about MMJV, helping to dispel misconceptions and increase fact-based awareness throughout the local communities.

MMJV is also involved in joint community visits with the local government. In FY2014, MMJV organised a three-week community visit with the government, reaching 30 communities and listening to the villagers’ concerns.

MMJV has a grievance mechanism where the wider community is able to air their concerns. In FY2014, a total of 276 grievances were received across Hidden Valley, Wafi-Golpu and exploration operations, with MMJV responding to each grievance and tracking them to ensure that a resolution is ultimately reached.

As part of MMJV’s commitment to its local communities, a two-year review of the Hidden Valley Memorandum of Agreement (MOA) was substantially completed. The review process consisted of over 50 consultative meetings between the various stakeholder groups and provided an opportunity to reconfirm commitments as well as identify opportunities with stakeholders across key areas, such as business development, employment and training, and community development, to ensure that important benefits reach mine-impacted communities.

As a component of the MOA review, the first ever business development compliance audit for the PNG mining sector was conducted. The audit was led by the Department of Commerce, Trade and Industry and the Investment Promotion Authority and its results have been used to create a revised business development plan for the Hidden Valley mine, with a renewed focus on governance regarding landowner businesses.

Parties to the MOA have agreed to a set plan and series of actions moving forward, with a revision to the MOA expected to be formalised during 2015.



The Gosowong operation is one of Newcrest’s highest margin mines. Near-mine exploration at Gosowong to extend the existing mine-life is a major focus area for the Company.

The Gosowong operations are located on Halmahera Island, Indonesia, and are owned and operated by PT Nusa Halmahera Minerals, an incorporated joint venture company, which is owned by Newcrest (75 percent) and PT Aneka Tambang (25 percent), a company listed on the Indonesian Stock Exchange and the ASX.

Gold mineralisation at Gosowong was discovered by Newcrest exploration in 1993 and comprises multiple high-grade epithermal deposits. Mining operations commenced in 1999, initially from the Gosowong open pit and subsequently from the Toguraci open pit. Decline development at the high-grade Kencana underground mine commenced in July 2005, with ore production commencing in March 2006 and continuing to the present day. A further cutback of the Gosowong open pit commenced in October 2010 and was completed in the June 2013 quarter. The Toguraci underground mine is the second underground project developed at Gosowong, with first ore production in September 2011. The processing plant at Gosowong has a capacity in excess of 800,000 tonnes per year.

The Gosowong Province remains highly prospective, and near-mine exploration activity to identify further epithermal vein structures and link zones is ongoing.

Gosowong

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PTNHM has undertaken substantial work to better understand the geothermal conditions within the Toguraci mine and to develop solutions to these problems using a combination of engineering, administrative and procedural controls. A critical element of the mine’s safety management systems is around limiting the exposure of the workforce to hot working conditions and minimising the risk of thermal stress.

Improvements have been made to reduce the potential impacts of the hot and humid conditions on employees working underground at Toguraci.

Taking the heat out of thermal stress at Gosowong

The Toguraci underground mine at Gosowong consists of a sequence of high-grade narrow vein orebodies within a volcanically and geothermally active region. Throughout the year, a typical tropical climate of high temperatures and very high humidity is experienced. These hot, humid conditions at the surface, together with the high temperature rock mass conditions underground, result in thermal conditions that pose many challenges to ensuring the health and safety of personnel.

A key aspect of the mine’s health and safety management systems include limiting the exposure of the workforce to hot working conditions and to minimising the risk of thermal stress.

PTNHM has undertaken substantial work to better understand the geothermal conditions within the Toguraci mine and to develop procedures for managing thermal stress.

A thermal stress management program has been implemented at Gosowong, based on the Newcrest Thermal Stress Management Standard and Guidelines, to manage the potential health hazards associated with the high temperatures experienced underground.

Throughout FY2014, improvements were made to reduce the potential impacts of thermal stress, including:

– Managing exposure to hot working conditions using Thermal Work Limits, an industry standard well suited to the tropical and humid climatic conditions of Toguraci. – Upgrading of the primary ventilation system, including the installation of a 6MW surface air chilling plant to reduce both the temperature and humidity of fresh air delivered underground. – Installing two new underground air-conditioned rest areas, in addition to standard underground refuge chambers. – Incorporating thermal stress management into the mining procedures at Toguraci. – Providing regular thermal stress health and safety awareness training to the underground workforce. – Undertaking heat measurement and three dimensional modelling of thermal variations throughout the mine to improve management of thermal stress.


The Bonikro operation is located in the central-southern portion of the West African nation of CÔte d’Ivoire, approximately 250km north-west of the commercial capital of Abidjan. The Bonikro operation is owned and operated by LGL Mines CI SA, an Ivoirian company in which Newcrest holds 89.89 percent, following the acquisition of Lihir Gold Limited (LGL) in August 2010. Minority interests are held by the CÔte d’Ivoire Government (10 percent) and the residual interest is held by a minority shareholder. Construction of the Bonikro mine began in May 2007, with gold production commencing in October 2008. The operation employs a conventional open pit mining method comprising drill, blast, load and haul. The predominant method of gold recovery is via carbon in leach technology, with some gold recovered via a gravity circuit.

Newcrest hold rights to exploration tenements in Côte d’Ivoire, covering approximately 17,000km2 within the Birimian Greenstone belt. Current exploration activity is focused on near-mine targets at the Hiré deposit and surrounding area.

Bonikro


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Through careful communication and stakeholder interaction, Newcrest has been able to address complex and sensitive artisanal mining issues at Bonikro, reducing health, safety and environmental risks.

In 2014, the government became increasingly serious on the issue of artisanal mining in Côte d’Ivoire, helping raise awareness that it would be neither legal nor tolerated anymore.

Ending artisanal mining with governmental and community engagement

Since 2006, the Bonikro mine has conducted intensive exploration work within its exploration permit near Hiré, which also attracted the artisanal mining population.

As the exploration results were promising, the Bonikro mine started the pre-feasibility study of its Hiré satellite project in 2009. The social and environmental impact assessment (SEIA), forming an integral part of the pre-feasibility study, addressed the risk posed by artisanal mining on the footprint of the future project. Some of these risks include gaining access to the permit, as well as health and safety risks (mercury poisoning), employee security, immediate health effects on persons using highly toxic chemicals, and environmental impacts on streams and rivers.

Inadvertently, as a post-electoral crisis erupted in early 2011, artisanal mining boomed in Hiré and elsewhere in the country because of the lack of governmental controls in place and the illegal gold market in the war-like situation thrived.

To manage the newly evolved artisanal mining situation, controls were put in place as part of the SEIA, including a comprehensive survey of the artisanal mining population on the footprint (2,449 people) and the establishment of a sustained communication scheme with artisanal miners through regular public information and consultations. The survey allowed the Company to estimate the magnitude of the artisanal operation on its footprint, elucidate how the artisanal mining population is stratified between nationals and internationals and to understand the socio-economic dynamics of these.

In 2013, following the approved SEIA and concluded pre-feasibility study, Newcrest took steps to ensure that the Company could gain access to its permit by engaging in a transparent dialogue with all local community members concerned, making them part of the solution especially by agreeing on how any loss of income by the affected people would be best handled.

In 2014, the government became increasingly serious with the implementation of its rationalisation policy and conducted national, regional and local workshops to ensure community awareness that artisanal mining, as currently conducted in Côte d’Ivoire, would neither be legal nor tolerated anymore on industrial mining permits.

Newcrest also recognised that the powerful traditional landowners in the Hiré region, the Watta Chiefs, could play a crucial role in controlling the movements of the artisanal miners in the region.

Newcrest developed and spearheaded a structured communication process with the local landowner chiefdom, with the goal to reconcile the complex, divergent interests of all parties involved. Over several months, Newcrest conducted a series of private hearings with the Watta Chiefs to gain the needed trust to address the sensitive topics around artisanal mining. Over time, the Watta Chiefs involved the artisanal mining leaders (pit owners) in the discussions and Newcrest was able to achieve stakeholder acceptance of the government’s rationalisation policy, agreement on a specific and non-violent footprint liberation by the artisanal miners, as well as a consensus that no compensation of loss of income to landowner and artisanal miners could be granted by Newcrest given the illegal character of the operation.

The last leg of the stakeholder interaction addressed the site liberation strategy and it was agreed that the local artisanal mining president, together with key landowners and pit owners, would work with Newcrest and conduct a step-by-step liberation process, allowing Newcrest to progressively secure and rehabilitate the site by bulldozer.

With this overall stakeholder alignment, Newcrest invited the local government to make an official announcement in Hiré that the liberation of Newcrest’s permit should take place in alignment with the law and according to a stringent two-month liberation schedule as stated in the SEIA.

Well-prepared for such an announcement, the stakeholder group, with Newcrest’s assistance, implemented the planned step-by-step liberation and the site was cleared on schedule with no protests or violence.

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Projects

Newcrest is focused on maximising free cash flow and generating a return on recent investments; however, a number of growth opportunities have been retained for future potential development. These projects remain in the early study phase.

Wafi-Golpu

Wafi-Golpu, located in the Morobe Province of Papua New Guinea, approximately 65km south-west of the town of Lae, is an advanced exploration project owned by the Wafi-Golpu Joint Venture (WGJV), one of three unincorporated joint ventures between subsidiaries of Newcrest and Harmony Gold Mining Company Limited, collectively known as the Morobe Mining Joint Ventures.

Wafi-Golpu comprises an extensive body of gold-only epithermal style mineralisation (Wafi) and deeper porphyry related copper-gold mineralisation (Golpu and Nambonga). Spatially, the Golpu and Wafi deposits are located in close proximity to each other. The Golpu deposit is located immediately north of and below the Wafi deposit. The Nambonga porphyry mineralisation is located to the west of Wafi-Golpu.

A technical pre-feasibility study completed in 2012 confirmed Golpu as a world-class deposit with cash costs expected to be at the bottom of the industry curve and a mine life expected to exceed 20 years.

Study work continued during the year, with a focus on reducing start-up capital, improving orebody knowledge and engaging with all stakeholders. The Golpu development option has the potential to underpin production growth at Newcrest in the next decade16.

16 Subsequent to the reporting period, the optimised 2012 pre-feasibility study was approved by the Newcrest Board in December 2014.

Access to education is elementary

Improving elementary education brightens the future prospects of children and the communities they live in, as well as increasing the potential for local employment opportunities. In FY2014, Morobe Mine Joint Ventures (MMJV), in consultation with the Morobe Division of Education (DoE), completed the construction of five new classrooms for schools in the Wafi-Golpu area as part of its Community Participation Agreement (CPA), including the Pekumbe, Zindaga, Hekeng, Zilani and Mazim communities.

The development of these classrooms has raised the number of schools in the region to 10. Three of these five classrooms were constructed for new schools and the remaining two will seek to focus on early childhood education. It is now estimated that 600 children attend these primary schools across the Wafi-Golpu region.

To ensure the appropriate level of support for the new classrooms was provided, MMJV and the DoE assisted the schools in a number of ways. MMJV facilitated the induction for 12 teachers across four schools within the region, with employees also providing session material on HIV/AIDS awareness. The DoE trainers provided trainees with curriculum and session planning material, teaching and assessing guidelines, reporting requirements and administrative material.

It is anticipated that in 2015, the DoE will award certification in ‘Teacher Development Training’ to all trainees as part of the establishment process.

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Rehabilitation grows strong at Namosi

Rehabilitation work on the Namosi Joint Venture’s Waisoi Project has progressed well under the guidance of local landowners and the government, with current exploration sites undergoing a rapid rehabilitation process and setting a high global benchmark.

The Namosi Joint Venture (NJV) has continued to implement the Rehabilitation Action Plan (RAP) for the Waisoi Project, rehabilitating historic and current drill pad sites, landslips and access tracks.

The RAP has progressed well under the guidance of the Tikina Namosi Landowners Committee (TNLC), the NJV and the government. Landowners are actively involved in the development and implementation of the RAP and monitor progress. The final phase of the RAP will be completed in FY2015.

Historic work involves capping of holes left by previous exploration companies and the rehabilitation of access tracks that are no longer required and are not fully stabilised. The majority of this work is now complete.

Current exploration sites undergo rapid rehabilitation, with preliminary rehabilitation taking place within 14 days of the end of each drill program, setting a high global benchmark for drill site rehabilitation.

Namosi

Namosi, located approximately 30km west of Fiji’s capital, Suva, is an advanced exploration project. It is centred on a district that has been periodically explored over the past 40 years and is highly prospective for copper-gold porphyry systems. Namosi is one of the largest porphyry copper systems in the Pacific Islands.

In late 2007, Newcrest signed a definitive joint venture agreement with Nittetsu Mining Co. Ltd and Mitsubishi Materials Corporation to establish the Namosi Joint Venture to explore for porphyry copper-gold and epithermal style gold mineralisation in the Namosi region of Fiji. Newcrest has a 69.94 percent interest in the Namosi Joint Venture and is the manager of the exploration activities.

Activities have been focused on the large Waisoi copper-gold deposit, the mineralised Waivaka Corridor, the Wainabama copper-gold prospect and a portfolio of early stage exploration targets.

The Waisoi Project is a copper and gold project in the pre-feasibility phase, with a study underway to evaluate development alternatives. This includes an environmental and social impact assessment of the potential impacts of a mine at Waisoi and to help the joint venture and the Fijian Government decide if the Waisoi Project can be built and operated in a safe, economical and environmentally responsible way.

Further drilling in the Waivaka Corridor, designed to test for high-grade extensions to the Wainaulo resource, was completed in mid-2014. Development alternatives for Namosi are being evaluated with a focus on lower capital start-up options and engagement with local stakeholders is ongoing.

Once the basic clean up and earthworks have been completed, the natural revegetation process takes over, continuing over time, with similar end results to its surrounding habitat.

To further assist in this rehabilitation work, a community nursery was launched at Namosi during the reporting period to enable local ferns and native plants to be purchased for use.

The nursery enables NJV to support its local economies through employment and direct purchases; training of community members in skills such as nursery management, seed collection, plant propagation and seedling management; and restoration of the environment to a near-original state.

The Namosi community nursery, in addition to a similar community nursery at Naitavuni, demonstrates the strong partnership between NJV and the Namosi and Waidina communities.

The opening of the community nursery at Namosi; the nursery enables NVJ to support the community as well as to purchase local ferns and native plants for rehabilitation work. From left to right: General Manager Future Forests Fiji Masum Buksh, NJV Country Manager Greg Morris and Permanent Secretary of Fisheries and Forests Inoke Wainiqolo.


Exploration

Discovery of new ore bodies is an important element in Newcrest’s business strategy. The majority of the Company’s current asset portfolio is the direct result of Newcrest exploration activities, either through discovery or early stage entry and resource drilling.

The Newcrest Minerals group seeks to grow the Mineral Resources base and Ore Reserves through exploration, innovation and collaboration. The inexpensive capture of gold resources, bringing new provinces into the portfolio, organic growth in existing provinces and efficient conversion of resources to reserves are the primary goals of the exploration program.

During FY2014, Newcrest exploration focused on drill testing a number of near mine targets, advancing drilling at major projects, testing the Newcrest portfolio of greenfield prospects and converting existing Mineral Resources into Ore Reserves.

Resource definition drilling continued at Golpu to assist with ongoing studies. Study work continued to evaluate underground access options and substantially lower capital development options for Wafi-Golpu. Exploration drilling, targeting near surface epithermal mineralisation between Wafi and Golpu, was also undertaken.

At Gosowong, discovery drilling continued to focus on extending the mine life. Near-mine drilling further defined new zones of mineralisation west of the Toguraci operations, with encouraging results. Drilling has resulted in a number of high-grade intercepts and demonstrated that the vein is laterally extensive.

Near-mine exploration at Bonikro in Côte d’Ivoire continued to target resource extensions within the mine district, with a particular focus on known deposits in the Hiré and Oumé areas.

As our exploration sites are increasingly outside of Australia and within complex social contexts, it is important that we develop the expertise to not only seek out new reserves, but also to develop relationships. Our experience at Namosi, and the significant progress made there in regards to improved community relations, has provided the exploration team with important learnings. These include placing a greater emphasis on engaging and communicating effectively with local stakeholders and ensuring that our exploration activities do not advance beyond the expectations of those surrounding the drilling sites. During the coming year, the Newcrest exploration team will be investing in its internal processes and systems as we look to further build our internal capacity. This will allow us to be well-placed when we once again expand our exploration activities in coming years.

Another focus for the coming year is to continue to develop Newcrest’s internal knowledge of potential exploration sites around the world. Our work at present is focused on Australia, South East Asia and the Pacific region. We believe we have a very strong understanding of prospective gold opportunities in these locations, and, as a result, have commenced building an understanding of other gold belts around the world.

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

Ernst & Young8 Exhibition StreetMelbourne VIC 3000 AustraliaGPO Box 67 Melbourne VIC 3001

Tel: +61 3 9288 8000Fax: +61 3 8650 7777ey.com/au

Independent Limited Assurance Report inrelation to Newcrest Mining Limited’s 2014Sustainability ReportTo the Board of Directors of Newcrest Mining Limited (‘Newcrest’)

We have carried out a limited assurance engagement in order tostate whether anything has come to our attention that causes us tobelieve that the subject matter detailed below (‘Subject Matter’), andas presented in the Newcrest 2014 Sustainability Report (‘theReport’), has not been reported and presented fairly, in all materialrespects, in accordance with the criteria (‘Criteria’) below.

Subject Matter

The Subject Matter for our limited assurance engagement includedthe following for the year ended 30 June 2014:

► Subject Matter 1: The alignment of Newcrest’s sustainabilitypolicies to ICMM’s 10 SD Principles and mandatoryrequirements set out in ICMM Position Statements.

► Subject Matter 2: Newcrest’s material SD risks andopportunities based on its own review of the business and theviews and expectations of stakeholders.

► Subject Matter 3: The existence and status of sustainabilitydata collation and reporting processes used by Newcrest tomanage a selection of the identified material sustainabilityrisks and opportunities.

► Subject Matter 4: Newcrest’s reported GRI G3 applicationlevel.

► Subject Matter 5: Newcrest’s reported performance during thereporting period for a selection of material GRI indicators -which were selected based on Newcrest’s materialityassessment process, in consultation with EY, listed in Table 1,below.

The subject matter did not include:

► Data sets, statements, information, systems or approachesother than the selected material GRI indicators and relateddisclosures

► Management’s forward looking statements► Any comparisons made against historical data.

Criteria

The following criteria have been applied to the Subject Matterdescribed above:

► Subject Matter 1: ICMM principles and any mandatoryrequirements set out in ICMM Position Statements.

► Subject Matter 2: Newcrest’s own reporting process fordetermining material risks and opportunities, the outcome ofthis process, and how the views and expectations of itsstakeholders were considered during this process. This is tobe assessed with regard to AccountAbility’s AA1000Assurance (‘AA1000AS’) and Principles Standards(‘AA1000APS’).

► Subject Matter 3: Newcrest’s own reporting criteria for‘existence’ and ‘status of implementation’ of systems andapproaches, as detailed in the Disclosures on ManagementApproach for material sustainability risks and opportunities.

► Subject Matter 4: GRI G3 Sustainability Reporting Guidelinesfor GRI Application level A.

► Subject Matter 5: GRI indicator protocols, and Newcrest’sreported criteria detailed in footnotes and the glossary, asidentified in Table 1, below:

Table 1

Performance data Criteria

Environmental compliance EN23*, EN28

Water use & discharge EN8-10, EN21

Waste management EN22, MM3

Community engagement and investment SO1, EC8

Community complaints MM6, MM7

Health & Safety LA7, LA8

Human Rights HR5, HR9

Governance SO2-4, SO6, SO8

Closure planning MM10

*includes additional company-specific criteria outlined in the Report.

The location of these disclosures is referenced in Newcrest’s GRIG3 Content Index and the GRI Data Tables.

Management’s Responsibility

The management of Newcrest is responsible for the preparationand fair presentation of the Subject Matter in accordance with theCriteria, and is also responsible for the selection of methods used inthe Criteria. No conclusion is expressed as to whether the selectedmethods are appropriate for the purpose described above. Further,Newcrest’s management is responsible for establishing andmaintaining internal controls relevant to the preparation andpresentation of the Subject Matter that is free from materialmisstatement, whether due to fraud or error; selecting and applyingappropriate criteria; maintaining adequate records and makingestimates that are reasonable in the circumstances.

Assurance Practitioner’s Responsibility

Our responsibility is to express a limited assurance conclusion onthe Subject Matter based on our assurance engagement conductedin accordance with the International Federation of Accountants’International Standard for Assurance Engagements Other ThanAudits or Reviews of Historical Financial Information (‘ISAE 3000’)and in accordance with the requirements of a Type 2 assuranceengagement under AccountAbility’s AA1000 Assurance Standard(2008) (‘AA1000AS (2008)’) and the terms of reference for thisengagement as agreed with Newcrest.

Our procedures were designed to obtain a limited level ofassurance on which to base our conclusion, and, as such, do notprovide all of the evidence that would be required to provide areasonable level of assurance. The procedures performed dependon the assurance practitioner’s judgement including the risk ofmaterial misstatement of the Subject Matter, whether due to fraudor error. While we considered the effectiveness of management’sinternal controls when determining the nature and extent of ourprocedures, our assurance engagement was not designed toprovide assurance on internal controls.

Our procedures did not include testing controls or performingprocedures relating to checking aggregation or calculation of datawithin IT systems, which would have been performed under areasonable assurance engagement.

We believe that the assurance evidence we have obtained issufficient and appropriate to provide a basis for our limitedassurance conclusions.


Assurance Statement

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

Page 2

Summary of Procedures Undertaken

Our procedures were designed with regard to a Type 2 assuranceengagement in accordance with AA1000AS (2008). In order for usto provide a conclusion in relation to the AA1000 AcountAbilityPrinciples we considered the following questions:

► Inclusivity: Has Newcrest demonstrated a commitment toincluding its stakeholders in developing and achieving anaccountable and strategic response to sustainability?

► Materiality: Does Newcrest have in place a process to identify,prioritise and include in its report the material information anddata required by its stakeholders to make informedjudgements, decisions and actions?

► Responsiveness: Does Newcrest have in place processesthat enable it to respond to material sustainability issuesthrough decisions, actions and performance?

Our procedures included but were not limited to the following:

► Performing a gap analysis between Newcrest’simplementation of the Principles of Inclusivity, Materiality, andResponsiveness based on evidence gathered, and the criteriaoutlined in APS (2008).

► Interviewing a selection of Newcrest staff and management atthe Telfer and Gosowong sites and corporate responsible forthe Subject Matter and the preparation of the Report

► Determining whether material topics and performance issuesrelevant to the Subject Matter identified during our procedureshad been adequately disclosed

► Sample testing of reported data, performance statements,claims and case studies included in the Subject Matteragainst supporting source information, Newcrest’s reportedboundary and GRI’s G3 Sustainability Reporting Frameworkprinciples of balance and completeness

► Sample testing as to whether the methods used forcalculating data were aligned with the stated Criteria

► Reading selected management information anddocumentation supporting assertions made in relation to theSubject Matter and assessing alignment with the reporteddata

► Reading selected Newcrest policies and standards andassessing alignment with ICMM’s 10 SustainableDevelopment Principles and other mandatory requirements asset out in ICMM’s Position Statements

► A Global Reporting Initiative (GRI) G3 application levelassessment to confirm Newcrest’s self-declared applicationlevel of A is consistent with the guidelines of GRI.

Use of our Limited Assurance Engagement Report

We disclaim any assumption of responsibility for any reliance onthis assurance report, or on the Subject Matter to which it relates, toany persons other than management and the Directors of Newcrest,or for any purpose other than that for which it was prepared.

Independence and Quality Control

In conducting our assurance engagement, we have met theindependence requirements of the APES 110 Code of Ethics forProfessional Accountants. We have the required competencies andexperience to conduct this assurance engagement.

Limited Assurance Conclusion

On the basis of our procedures for this limited assuranceengagement, nothing has come to our attention that causes us tobelieve that the Subject Matter has not been reported andpresented fairly, in all material aspects, in accordance with theCriteria above.

Positive Observations and Opportunities for Improvement

The observations and opportunities for improvement below do notaffect our conclusions expressed in the Limited AssuranceConclusion section above. We acknowledge that Newcrest havemade good progress in addressing previous management findingsincluding an improvement in site-level engagement during themateriality process, as well as broadened reporting on mine closureand rehabilitation.

AccountAbility’s AA1000 Principle of InclusivityWe observed that at the sites visited, Newcrest has implemented arange of processes for on-ground local community engagement.However at one of the sites, it was observed that there wereopportunities to improve documentation of those activities in thestakeholder management plans. Additionally it was noted at theCorporate level that stakeholder engagement with groupsrepresenting broader society and the environment such as NGOscould be strengthened to provide greater insights to the Companyon material issues.AccountAbility’s AA1000 Principle of MaterialityTo support the development of the Report, Newcrest undertook amateriality assessment process consistent with the guidanceprovided by the GRI. The material issues selected were validatedwith Executive Management and the Sustainability Committee.Additional direct engagement with a broader range of externalstakeholders during the materiality assessment process wouldexpand the range of views considered for selection andprioritisation as material issues for reporting.AccountAbility’s AA1000 Principle of ResponsivenessWhile Newcrest have included the list of stakeholder groups andtheir areas of interest within the report and taken those interestsinto consideration when preparing the report and case studies, thedisclosure of specific issues raised by stakeholders and Newcrest’sresponses to these could be made even clearer through:► Additional case studies targeted on issues of interest to

specific stakeholder groups that demonstrate Newcrest’sresponses to challenges faced by the business;

► Improving the timeliness of the report to enhance itseffectiveness as a mechanism to respond to stakeholderinterests; and,

► Inclusion of key elements related to responsiveness from theDisclosures of Management Approach within the main reportin future years instead of only in a separate online document.This would help stakeholders (including those without accessto online material) interpret links between performance andthe management processes applied by the business tomaterial issues.

Other recommendationsIn alignment with ICMM principle 10, EY commends Newcrest’scommitment to transparent corporate reporting and assurance. At asite level, it is important for all Newcrest sites to balance theircommunity development activities with an appropriate level of datacollection and reporting, to ensure that site-specific issues arereported to Corporate in a timely manner.It was noted that each site uses various site-based systems forcapturing sustainability data through refinements to the reportingsystems that are specifically associated with collation of data for theReport.

We have provided further detail on these recommendations in aninternal report to Newcrest’s management.

Ernst & YoungMelbourne, Australia27 March 2015


Assurance Statement

Corporate Directory

Investor Information

Registered and Principal Office Newcrest Mining Limited Level 9 600 St Kilda Road Melbourne, Victoria 3004 Australia T: +61 (0)3 9522 5333 F: +61 (0)3 9525 2996 E: [email protected] www.newcrest.com.au

Company Secretary Francesca Lee Newcrest Mining Limited Level 9 600 St Kilda Road Melbourne, Victoria 3004 Australia T: +61 (0)3 9522 5333 F: +61 (0)3 9521 3564 E: [email protected]

Investor RelationsChris Maitland Head of Investor Relations Level 9 600 St Kilda Road Melbourne, Victoria Australia, 3004 T: +61 (0)3 9522 5717 E: [email protected]

Stock Exchange Listings

Australian Stock Exchange (Ticker NCM) Port Moresby Exchange (Ticker NCM) New York ADRs (Ticker NCMGY)

Share Registry Link Market Services Limited Level 1 333 Collins Street Melbourne, Victoria 3000 Australia

Locked Bag A14 Sydney South, New South Wales 1235 Australia T: 1300 554 474 T: +61 1300 554 474 F: +61 (0)2 9287 0303 F: +61 (0)2 9287 0309* *For faxing of Proxy Forms only. E: [email protected] www.linkmarketservices.com.au

PNG Registries Limited Level 2, AON House McGregor Street Port Moresby NCD 121 PO Box 1265 NCD, Papua New Guinea T: (675) 321 6377 F: (675) 321 6379

American Depositary Receipts (ADRs) The Bank of New York Mellon Shareowner Services PO Box 358516 Pittsburgh, PA 15252-8516 T: Toll Free for US domestic callers: 1-888-269-2377 International Callers: +1 201-680-6825 E: [email protected]

Other Offices

Perth & Telfer Office 193 Great Eastern Highway Belmont, Western Australia 6104 Australia T: +61 (0)8 9270 7070 F: +61 (0)8 9277 7127

Port Morseby Office Level 4 Port Tower Building Hunter Street Port Moresby, Papua New Guinea T: + 675 321 7711 F: + 675 321 4705

Company Events

29 October 2015 Annual General Meeting at 10:30am Clarendon Auditorium Melbourne Convention and Exhibition Centre 2 Clarendon Street, South Wharf Melbourne, Victoria 3006

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

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