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Annual Report 2015 37

Background

The Company acquired the Long

Operation in Kambalda, WA, from

BHP Billiton Nickel West Pty Ltd

(BHPB) (formerly WMC Resources

Ltd) in September 2002. The mine

was successfully re-commissioned in

October 2002 and has been operating

successfully and safely since then.

Since October 2002, IGO has produced

over 2.9Mt of nickel ore, producing

approximately 116,000t of contained

nickel metal. A commitment to

brownfields exploration has seen the

discovery of the McLeay (2005) and

Moran (2008) ore bodies and has

enabled the operation to maintain a

reserve base over time to support a

two to three year life.

Offtake Agreement

IGO has an agreement with BHPB

whereby the ore produced from the

mine is delivered to the adjacent BHPB

Kambalda Nickel Concentrator for toll

treatment and production of nickel

concentrate. This offtake agreement

expires in 2019.

Safety

IGO is committed to continual

improvement and targeting zero

injuries at the Long Operation. We also

recognise that our safety objectives

cannot be attained without equal

input from all our employees and

contractors, so we continue to actively

engage and consult all employees

and contractors to revise safe work

practices. One LTI occurred at Long

Operation during FY2015. During FY2015

the 12-month LTIFR has improved from

11.8 to 3.1 injuries per million hours

worked, a very credible effort by the

Long team.

The occupational health and safety

regime is based on the belief that

safety comes first and profits can be

made without compromising safety.

It is Management’s conviction that

a positive attitude towards safety

is the key to any safety program.

Hazard identification, accident/incident

investigation, competency training,

safe work procedures, competency

reassessment and regular workplace

inspections and task observations

are carried out with the input of our

employees. There is a strong focus

on emergency preparedness, with

the application of risk mitigation and

emergency management procedures

throughout FY2015.

258,634

tonnes of ore was

mined during FY2015

10,198

nickel tonnes

delivered during 2015