PanAust’s approach to sustainable developmentPanAust General Manager Human Resources and Risk Management, Adrian Bell

PanAust Limited

Employees year-end 2016:Laos – 3,249Thailand – 4Australia – 52Papua New Guinea – 100Myanmar – 19

Successful mid-tier copper and gold producer

Brisbane-headquartered

Phu Kham Copper-GoldOperation

Ban HouayxaiGold-SilverOperation

GRAM

Frieda River Copper-Gold Project

Exploration Licences

Why sustainable development? Essential for ongoing success

Underpins PanAust’s growth strategy

Secures and grows the business

Creates new business by smoothing our entry into new markets

The effective management of sustainability risks makes good financial sense

Attracts talent

Proxy for good management

Right thing to do

Our efforts are helping us grow

• GRAM

• The Governments of Papua New Guinea, Laos and Myanmar

• Financiers

• Insurers

• Customers

• Sustainability Analysts

GovernanceSocial

Performance

Environment

Health & Safety

People Performance

Our Values

Leveraging culture through sustainability

Operational Performance Growth opportunities Financial performance

Sustainability structure Business conduct Product stewardship Risk management

Stakeholder engagement and community relations

Economic value generated Community development Closure preparedness

Tailings and waste rock Water management Cyanide management Energy and carbon management Land rehabilitation and closure Dust

Safety culture Contractor management Vehicles and mobile equipment Fatigue Management Crisis & Emergency Management Aviation Security management

Training and Development Employee Engagement Workplace Diversity

Strong ethical foundation

Based on a commitment to high standards of corporate governance, transparency, financial management and technical expertise

Signatories to International Standards

Commitment to our employees’ health and safety and ‘Zero Harm’ safety objectives

ERM has been the cornerstone of our business processes

Policies and standards in place

Auditing and benchmarking material risks

Maintaining our reputation

Governance

• Signatory to Minerals Council of Australia’s Enduring Value framework

• International Financing Corporation (IFC) Performance Standards / Equator Principles

• Enterprise Risk Management ISO 31000

• PanAust Sustainability Standards

• Signatory to the Voluntary Principles on Security and Human Rights

• Publically Report to GRI 4 and Carbon Disclosure Project (CDP)

• Auditing and Benchmarking (IFC Audit, Socio-Economic and Health Surveys, Beca Assurance GRI, ISO 18001 etc.)

• The General Manager, Human Resources and Risk Management oversees the integration of sustainability and group targets

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Stakeholder engagement

• PanAust seeks Free Prior and Informed Consent for development consistent with the ICMM’s Indigenous Peoples and Mining position statement.

• Inclusive Stakeholder Engagement plans in place

• Dedicated Government Relations teams

• Periodic socio-economic surveys in host communities to better understand:

– issues, community living standards, priorities and to assess the extent stakeholders believe their concerns are effectively addressed

• Engagement mechanisms provide opportunities for men, women, youth and vulnerable groups to participate in consultation, community development and decision-making processes.

• Grievance mechanisms in place

Economic value generated

PanAust has contributed to the Lao economy in many ways:• Revenues from copper, gold and silver including payments of royalties

• Profit tax and other payments

• Payment of dividends to the GoL as a ten per cent shareholder in Phu Bia Mining

• Salaries paid to employees and salary taxes

• Local procurement of goods and services.

• Training and skills development

• Investments in community development programs through community development funds (CDFs)

• Investment in regional infrastructure, sponsorship and donations

• Awarded 2 Lao Labour Order Class 1 Medals from the Government of Laos

What we have achieved for the Lao people

Empowering womenAccess to improved health care

Village Saving & Credit Funds

Localisation

Education

Supporting local businesses

Aligning employees with business strategy

Workforce localisation

planning

Technical and language trainingRecruitment and

selectionGraduate program

Leadership development

Succession planning

Mentoring program

Organisation structure

Recruitment and selection

Localisation

• Approximately 3,250 employees

• Lao-national employees account for 91 per cent of the workforce

• 17 per cent are female

• Four main languages: Lao, English, Hmong and Khmu

• 700 employees are villages close to the Company’s operations and activities

Tailings and waste rock management• Management of Acid Rock Drainage at Phu Kham is a key

issue

• Tailings Storage Facility (TSF):

– Evaluated as industry best-practice– Integrated waste facility– Waste is classified based on its acid rock drainage

potential– Uses a simple ‘traffic-light’ management plan – red,

amber, green and blue– High Potential Acid Forming (PAF) mineral and disposed

of underwater in TSF– Fleet management system is used to strictly manage

quality control of sulphur grades – At closure, all higher risk PAF to be placed under a

permanent water cover

• Extensive Monitoring programs

• Comprehensive Governance via Independent Review Pane

Ban Houayxai cyanide management

What is the Cyanide Code?

– Administered by the International Cyanide Management Institute (ICMI)

– Internationally recognised management system– A voluntary program– Nine principles and 200 standards of practice

• PanAust is a signatory to the Code

– BHX achieved pre-operational certification and is recertified three-yearly, the most recent recertification in 2016

• We view the Code as integral to ensuring the business, the environment and local communities are not put at risk

• All areas at Ban Houayxai where cyanide is used or may be present are designed, constructed and operated to Code requirements or better

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Our safety journeyTake 5Job Safety ObservationsINX (InControl) introduced

Cardinal RulesICAM Visible Safety Leadership

Deep Dives

Fatigue managementPhu Kham FM

Five Safe BehavioursPlanned Task ObservationsFatigue Committee

Senior ManagementTaskforce

Risk workshops

Zero is not the end of the journey

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Recordable injuries TRIFR

Our safety journey

What drives good safety performance?

Our expectations are high

And we are determine to remain Way Ahead