Sustainability Report 2019 - Newcrest Mining

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Sustainability Report 2019 - Newcrest Mining
2019
Sustainability
       Report
Sustainability Report 2019 - Newcrest Mining
OUR APPROACH
         TO SUSTAINABILITY

                                  To be the Miner of Choice
                    OUR VISION

                                  for our people, shareholders,
                                  host communities, partners
OUR VISION

                                  and suppliers.

                                  To safely deliver
                    OUR MISSION

                                  superior returns to our
                                  stakeholders from finding,
                                  developing and operating
                                  gold/copper mines.
                    OUR VALUES

                                            Caring about people

                                            Integrity and honesty

                                            Innovation and
                                            problem solving

                                            High performance

                                            Working together

                                  Cover image: Footballers at the
                                  Punmu Festival, sponsored by Telfer   Cadia
                                  Credit: Ngurra Kujungka
Sustainability Report 2019 - Newcrest Mining
NEWCREST 2019 SUSTAINABILITY REPORT

                                                                  1

                                                              CONTENTS
           Welcome to Newcrest                     2

CONTENTS
           About this report                       3
           In conversation with our
           sustainability leaders4
           Our sustainability vision and approach  8
           Our progress in FY19                   10
           What matters most                      11
           Our performance overview               12
           Our stakeholders                       13
           Our leadership                         16
           Our material topics                    17
           1. Improving safety and health         17
           2. Establishing a response to
           climate change                         21
           3. Growing our business                25
           4. Managing mine closure               32
           5. Working with our communities        36
           6. Respecting and protecting
           human rights                           44
           7. Managing our waste                  51
           8. Behaving in an ethical and
           transparent manner                     55
           9. Financial sustainability and
           local economies                        58
           Appendix62
           The materiality definition process 62
           ICMM 10 Principles 63
           World Gold Council Responsible
           Gold Mining Principles 63
           Stakeholder engagement summary 64
           Our performance data               65
           Assurance statement                76
           Asset overview                     78
           Disclaimers                        80
           Corporate directory                81
Sustainability Report 2019 - Newcrest Mining
OUR APPROACH
          TO SUSTAINABILITY

      2
                                        Welcome to
                                        Newcrest
TO NEWCREST

                                        Newcrest is one of the world’s largest gold
WELCOME

                                        mining companies. We are among the top
                                        50 companies listed on the Australian
                                        Securities Exchange, and we are also listed
                                        on PNGX Market, Papua New Guinea’s
                                        national stock exchange.
                                        Our headquarters are in Melbourne, Australia, and we have
                                        operating mines in Australia, Canada, Papua New Guinea (PNG) and
                                        Indonesia. We also have a number of development projects and we
                                        are exploring around the globe. Refer to our asset overview and
                                        map on page 78 at the back of this report for details. As at 30 June
                                        2019, Newcrest had a market capitalisation of A$24.6 billion and
                                        a workforce of nearly 12,000 people.
                                        At Newcrest we’re known for our strong technical capabilities in
                                        exploration, deep underground block caving and metallurgical
                                        processing skills. We are committed to creating a work
                                        environment where everyone can go home safe and healthy every
                                        day, and where everyone actively contributes to this outcome;
                                        operating and developing mines in line with strong environmental,
                                        social and governance practices; developing a diverse workforce;
                                                                                                                Telfer
                                        and developing and maintaining strong relationships with our
                                        communities and governments.

                                        To achieve Newcrest’s full potential for our stakeholders, our company strategy focuses on five key pillars,
                                        each with associated 2020 aspirations.
                     OUR FIVE PILLARS

                                        Safety &                    People                     Operating                 Technology       Profitable
                                        sustainability                                         performance               & innovation     growth

                                        ZERO FATALITIES             FIRST QUARTILE             FIRST QUARTILE            5 BREAKTHROUGH   EXPOSURE TO
                     OUR ASPIRATIONS

                                        AND INDUSTRY-               ORGANISATIONAL             GROUP AISC PER            SUCCESSES BY     FIVE TIER ONE
                                        LEADING TRIFR BY            HEALTH BY END              OUNCE BY END              END OF CY20      OREBODIES BY
                                        END OF CY20                 OF CY20                    OF CY20                                    END OF CY20
                                                                                                                                          (OPERATIONS,
                                                                                                                                          DEVELOPMENT
                                                                                                                                          PROJECTS,
                                                                                                                                          OR EQUITY
                                                                                                                                          INVESTMENTS)
Sustainability Report 2019 - Newcrest Mining
NEWCREST 2019 SUSTAINABILITY REPORT

                                                                                                                                         3

                                                                                                                                     ABOUT THIS
                                                                                                                                     REPORT
                                Report boundary and scope                        There are a number of restatements of
                                                                                 previous years’ data reporting in this report.
About                           The boundary of Newcrest’s reported
                                performance includes all operations (sites)      These are specified on relevant pages of the
this report                     which Newcrest owned in FY19 excluding           report and in a summary table on page 75.
                                projects, corporate offices and exploration      The readership for this report includes
Newcrest bases its reporting    sites, unless stated otherwise. Therefore,       shareholders, investment analysts,
approach on guidance provided   the focus of this report covers sustainability   financiers and credit agencies, government
                                matters related to the locations of:             and non-government organisations,
by the Global Reporting
                                –– Telfer, Australia                             employees (existing and potential), business
Initiative (GRI) Standards                                                       partners, students and general readers with
                                –– Cadia, Australia
and AA1000 AccountAbility       –– Lihir, Papua New Guinea
                                                                                 an interest in the mining industry and/or
                                                                                 sustainability performance of corporations.
Principles Standard, as well    –– Gosowong, Indonesia
as ICMM’s broader member        The scope of this report includes data
                                                                                 Newcrest’s Annual Report, available on
                                                                                 Newcrest’s website, is also relevant to
reporting requirements.         for 1 July 2018 to 30 June 2019, which           this readership.
                                corresponds to our fiscal year. Where noted,
                                references are made to historical results        Refer to the 2019 GRI Content Index
                                as needed. All financial data is presented in    (online) for a detailed breakdown by page
                                USD unless noted otherwise. References           of our reporting information.
                                to ‘Newcrest’, ‘the Company’, ‘the Group’,       We welcome feedback, and invite
                                ‘we’ and ‘our’ are to Newcrest Mining Ltd        readers to send any comments or
                                and/or where explicitly stated may include       enquiries about this report to us at
                                joint ventures and subsidiaries.                 sustainabilityfeedback@newcrest.com.
Sustainability Report 2019 - Newcrest Mining
OUR APPROACH
                       TO SUSTAINABILITY

             4
                                           In conversation
                                           with our
IN CONVERSATION WITH OUR
SUSTAINABILITY LEADERS

                                           sustainability
                                           leaders

                                                             How would you describe Newcrest’s                 policies and practices, particularly in the
                                           Roger Higgins                                                       areas of safety and health, environmental
                                                             year from a sustainability perspective?
                                           Chairman, Board   Newcrest has made good progress in                management, human rights and relationships
                                           Safety and        strengthening the sustainability elements         with communities. We review Newcrest’s
                                                                                                               work to mitigate risks in these important
                                           Sustainability    of our strategy, supporting our vision to be
                                                                                                               sustainability areas. Monitoring performance
                                                             Miner of Choice for all our stakeholders. We
                                           Committee         are proud to be part of the fundamental role      and compliance to our policies and legal
                                                             metals and mining play in the sustainable         requirements is central to that process. The
                                                             development of society, whether that is           committee also reviews Newcrest’s response
                                                             through meeting the increasing demand             on issues of concern or non-compliance and
                                                             for the components of today’s advanced            monitors industry trends and standards.
                                                             digital and renewable energy technology           The committee considers opportunities
                                                             or in contributing to the livelihoods of the      that have been identified for improving
                                                             communities where Newcrest operates.              Newcrest’s sustainability performance,
                                                             There are many opportunities for gold and         assessing the positive outcomes alongside
                                                             copper to contribute to our everyday lives.       potential business risks. The committee’s role
                                                             Newcrest’s admission as a member of the           also includes oversight of Newcrest’s annual
                                                             International Council on Mining and Metals        Sustainability Report, which summarises
                                                             (ICMM) in November 2017 included a public         management of our significant risks
                                                             commitment to the ICMM 10 Principles and          and opportunities.
                                                             position statements. These address core
                                                                                                               What are the notable sustainability
                                                             sustainability development challenges in the
                                                                                                               challenges and achievements for the year?
                                                             mining industry. Newcrest has continued to
                                                             focus on specific actions to align our business   We had further improvement in our safety
                                                             to these principles and position statements.      performance this year. Newcrest continues
                                                                                                               to focus on the health and safety of our
                                                             Safety and sustainability are fundamental
                                                                                                               workforce and broader communities
                                                             to Newcrest’s organisational and business
                                                                                                               as a core value. This aligns with our
                                                             strategy. During the year a corporate
                                                                                                               commitment to developing strong, long-term
                                                             sustainability framework was developed.
                                                                                                               relationships with our host countries and
                                                             Under the framework, the Board endorsed
                                                                                                               local communities.
                                                             the release of a new Sustainability Policy,
                                                             Water Stewardship Policy and Biodiversity         During the year we formalised our position
                                                             Policy, and related performance objectives,       on climate change. Newcrest released a new
                                                             targets and metrics. We also released a           policy and set a GHG intensity target of a
                                                             number of related policies and standards,         30% reduction in GHG emissions per tonne of
                                                             demonstrating our commitment to aligning          ore treated by 2030, compared to a baseline
                                                             our practices with our vision.                    of FY18 emissions.
                                                                                                               Challenges also arose during the year, ranging
                                                             What is the role of the Newcrest Board            from advancing the Wafi-Golpu project under
                                                             Safety and Sustainability Committee?              our broader growth agenda, to addressing the
                                                             The committee assists the Board with              divestment requirement for Gosowong.
                                                             governance of Newcrest’s sustainability
Sustainability Report 2019 - Newcrest Mining
NEWCREST 2019 SUSTAINABILITY REPORT

“In focusing on growing                                                                                                                             5

the business, we are

                                                                                                                                                IN CONVERSATION WITH OUR
                                                                                                                                                SUSTAINABILITY LEADERS
 compelled to do so in
a sustainable manner.”

Sound tailings management is of great        managing our impacts in a responsible and       and transformation, one that has reinforced
importance to Newcrest, the industry,        collaborative way. This Sustainability Report   Newcrest’s platform for sustainable growth.
and all our stakeholders. We received        prioritises communicating our sustainability
and published the Independent Technical      performance and accountability against our
Review Board (ITRB) findings on the          stakeholders’ expectations. It is important
Northern Tailings Storage Facility           that we measure and monitor our activities
embankment slump that occurred at            to effectively manage the impacts of our
Cadia in early 2018. Through engagement      growth. It is from these processes that we      ROGER HIGGINS
with the ICMM we continued our close         continue to be a strong corporate citizen. As   CHAIRMAN
involvement in industry- wide improvements   we focus on growing the business, we do so
                                                                                             NEWCREST BOARD SAFETY
to tailings management.                      in a sustainable manner.
                                                                                             AND SUSTAINABILITY COMMITTEE
What is your key message to the broader      I want to thank the other committee
stakeholder community – the workforce,       members and my Board colleagues for
shareholders and communities – in which      their valuable inputs and insights during
Newcrest operates?                           the year. On behalf of my fellow directors,
                                             I also thank and congratulate Sandeep
Newcrest is always seeking opportunities
                                             and the leadership team for delivering
to add value to the business, while
                                             another year of successful development

   Lihir
Sustainability Report 2019 - Newcrest Mining
OUR APPROACH
                       TO SUSTAINABILITY

             6
IN CONVERSATION WITH OUR
SUSTAINABILITY LEADERS

                                           Sandeep Biswas       What are some of the proudest                    the Australia Awards programme is a great
                                                                moments from the last year for                   example of just one of these initiatives.
                                           Newcrest Managing    Newcrest?                                        Through nursing and midwifery training
                                           Director and Chief   Our greatest priority is making sure our         scholarships our business is helping to
                                           Executive Officer    people go home safe and healthy from work        save the lives of mothers and babies in
                                                                every day. It is essential to our ongoing        remote areas.
                                                                success and is an enduring focus for our         During the year, we made progress in
                                                                business. We have finished another year          completing sustainability actions under
                                                                with no fatalities or life-changing injuries.    our commitment to our ICMM membership.
                                                                Our total recordable injury frequency rate       We also contributed to the development of
                                                                (TRIFR) has reduced further over the year        the World Gold Council (WGC) Responsible
                                                                and is now 2.3 per million hours worked.         Gold Mining Principles, which were
                                                                This marks four consecutive years of             released in September. Another highlight
                                                                TRIFR reduction and four years of being          of the year was releasing our overarching
                                                                fatality-free.                                   Sustainability Framework, setting us up for
                                                                Our continued commitment to Newcrest’s           a longer-term approach to sustainability
                                                                Safety Transformation Plan underpins this        across the business.
                                                                sustained improvement. During the year we        I am proud of our people’s willingness to
                                                                continued to embed and renew the three           change, to embrace new technology and
                                                                pillars of the plan: working to strengthen       innovation, and to try new ways of doing
                                                                our safety culture, ensuring we have critical    things. There is a huge appetite here at
                                                                controls in place for high-risk tasks, and       Newcrest to be the best we can be, and our
                                                                applying robust process safety management.       people bring a high level of commitment
                                                                We empower our people to make the best           to the job every day. A key factor in being
                                                                decisions, to speak up, and to take the action   our best is in embracing our differences.
                                                                they need to work safely. We are unwavering      A practical example of this is our Diversity
                                                                in our long-term commitment to our Safety        and Inclusion Strategy, which has helped
                            “We are unwavering                  Transformation Plan and can never become
                                                                complacent about safety.
                                                                                                                 us increase our representation of women,
                                                                                                                 Indigenous people, and local employees,
                            in our long-term                    Our business has the opportunity, and            both in number and types of roles. In our
                                                                                                                 2019 annual employee Organisational
                                                                the responsibility, to make a significant
                             commitment                         difference to the lives of people in our local   Health Survey we achieved top-quartile
                                                                communities. For example, in PNG we are          health for the first time since we
                            to our Safety                       creating an impact on a national level through   commenced our survey in 2014. This clearly

                            Transformation                      the contributions of Lihir and, potentially,
                                                                Wafi-Golpu. In addition to the significant
                                                                                                                 demonstrates our business is stronger and
                                                                                                                 greater diversity is playing its part.

                             Plan and can                       direct benefits that flow from our mining
                                                                and local workforce contributions, our PNG
                                                                                                                 How would you sum up Newcrest’s
                                                                                                                 approach to sustainability?
                             never become                       National Engagement Strategy supports
                                                                socio-economic development initiatives
                                                                                                                 Sustainability is about how our actions

                             complacent                         under five priority themes: women, youth,
                                                                                                                 can make our operations safer, our
                                                                                                                 decision-making more transparent, and our
                                                                health, administrative capability, and
                            about safety.”                      environment. Newcrest’s partnership with
                                                                                                                 communities increasingly resilient, while
                                                                                                                 managing and reducing our environmental
Sustainability Report 2019 - Newcrest Mining
NEWCREST 2019 SUSTAINABILITY REPORT

impacts. In short, how we can make our          Our strong relationships with our local         A critical part of building these lasting
                                                                                                                                                        7
business better.                                communities cannot be taken for granted.        relationships with our local communities
Our new targets include a target of             Continuing to hear and act on what really       is our ongoing investment in people and

                                                                                                                                                    IN CONVERSATION WITH OUR
                                                matters to the people around our mines          systems to support that collaboration.

                                                                                                                                                    SUSTAINABILITY LEADERS
30% reduction in greenhouse gas (GHG)
emissions intensity per tonne of ore            remains a priority.
                                                                                                What would you say to your team at
treated by 2030 against the 2018 baseline,      How is the industry changing and                Newcrest about the sustainability
a shadow carbon price, and public support       what is the impact and opportunity              approach?
for the Task Force on Climate-related           for Newcrest?                                   The industry in which we operate presents us
Financial Disclosures (TCFD) framework.         As ore bodies become deeper and more            with unexpected challenges from time to time,
We have also issued new policies on             scarce we need new skills and talent to use     and this year has been no exception. It’s the
sustainability, climate change, biodiversity,   technology to explore and mine. Developing      way that we’re able to tackle those challenges
and water stewardship. The new policies         new skills and diversity in the mining          that sets us apart from other companies. It is
will be embedded into our assets and            industry is an opportunity for us to make our   key to our success as an organisation.
operational planning cycles, along with our     business more sustainable for the future.       I thank everyone at Newcrest for their
new metrics and targets.
                                                We are also exploring renewable power           continued efforts and achievements
The business imperative for introducing         generation and other low-emission               throughout the past year. Our people
these new targets and policies is simple.       technologies to use energy more efficiently,    exemplify high performance, integrity and
Sustainable outcomes drive positive             with the aim of ultimately delivering           honesty on a daily basis and I am consistently
operational outcomes.                           reductions in both emissions and cost.          impressed with the innovative approach to
For me, sustainability is about doing           Finding new ways to process ore more            problem-solving at Newcrest. I thank the
the right thing. The right thing for our        innovatively is another opportunity for         Board of Directors for their support and
shareholders, our people, our communities,      Newcrest and our sector.                        commitment to our sustainability objectives.
and our environment. Sustainability isn’t       Across the industry we are seeing an            We look forward to progressing these
an add-on to our operations; it is central to   increased focus on transparency and the         further and embracing our transformation
our operations. This year has been one of       public sharing of corporate information.        opportunities in the year ahead.
real progress in setting up our policies and    Investors, governments, communities and
systems to better align with the ICMM 10        customers are seeking increased detail
Principles. That work continues and I expect    about more aspects of our performance.
to see more progress over the next year.        By openly sharing information – from
What do you see as the key                      how diverse our workforce is, to how we
sustainability challenges for Newcrest?         manage tailings dams, to what our target
One key sustainability challenge is our         is for emissions reduction – we have the
approach to energy supply and emissions         opportunity to build increased trust with
                                                                                                SANDEEP BISWAS
reduction. Mining is an energy-intensive        our communities. Strengthening and              NEWCREST MANAGING DIRECTOR
business. Being more innovative in the way      maintaining that trust over the long term is    AND CHIEF EXECUTIVE OFFICER

we mine can reduce the amount of energy         key to building a sustainable, resilient and
we use and also reduce our emissions            profitable business.
footprint. Like many companies, we can also     What lies ahead for Newcrest?
look at the sources of our energy supply and    As we pursue our aspirations we are
opportunities to use more renewable energy.     strengthening our commitment to building
For example, at Cadia, we are in the initial    sustainable futures for the communities
stages of planning for a small solar power      in which we operate.
trial. We are also looking at gas and further
                                                Our engagement and community
geothermal power opportunities at Lihir. Our
                                                development work aims to better enable
new asset, Red Chris, is predominantly run on
                                                our local communities to meet their
hydro power. So over time, increasing our use
                                                own long-term needs and aspirations.
of renewable energy is a priority.
                                                Collaborative relationships are essential,
Tailings management is also a key issue for     and we are working openly with our local
us and the communities in which we operate.     communities and governments.
Newcrest is a working group member of the
ICMM Tailings Review and, together with
other industry leaders, we are committed
to the ICMM approach to the governance
of tailings storage facilities.

                                                0
                                                FATALITIES
                                                                          2.3 30%
                                                                          TRIFR PER MILLION        REDUCTION IN GHG EMISSIONS
                                                                          HOURS WORKED             INTENSITY PER TONNE OF ORE
                                                                                                   TREATED BY 2030
Sustainability Report 2019 - Newcrest Mining
OUR APPROACH
                  TO SUSTAINABILITY

                                                  Our sustainability
                             OUR APPROACH

          8

                                                  vision and approach
VISION AND APPROACH
OUR SUSTAINABILITY

                                                  “Sustainable mining                                                                  Sustainability
                             OUR RESPONSIBILITY

                                                   means engaging                New objectives,
                                                                              metrics and targets
                                                                                                                                       vision
                                                   and respecting
                                                                                  Target of 30%      2020                              Sustainability is integral to our Forging
                                                   local communities,           reduction in GHG                                       a Stronger Newcrest strategy. The
                                                   assessing and             emissions intensity
                                                                             by 2030 from 2018
                                                                                                                                       Safety and Sustainability pillar of our
                                                                                                                                       strategy demonstrates that Newcrest
                                                   managing safety, social    baseline per tonne
                                                                                   of ore treated                                      prioritises and integrates sustainability
                                                   and environmental                                                                   in our decision-making.
                                                   impacts, and                                                                        In late 2017, Newcrest’s admission
                                                                                                            Sustainability
                                                   making ethical and                                       Framework                  into the ICMM outlined the need for full
                                                   transparent strategic                                    and policies               alignment with the ICMM 10 Principles
                                                                                                     2019                              and position statements. Through our
                                                   business decisions.                                      Climate change
                                                                                                            Support TCFD               membership, we have continued to
                                                  This approach delivers                                    Water                      build on our sustainability foundations.
                                                                                                            Biodiversity               In addition, as members of the WGC,
                                                   safe and profitable                                                                 we support the Responsible Gold
                                                   operations.”                                                                        Mining Principles outlined on page 63.
                                                                                                                                       In 2018, we developed a sustainability
                                                                                    Sustainability                                     action plan, which included articulating
                                                                                      action plan
                                                                                                     2018                              our sustainability vision and
                                                                                 Climate Change                                        reviewing our objectives, as well as
                                                                                      Statement                                        strengthening our alignment with
                                                                                                                                       the ICMM 10 Principles. In FY19,
                                                                                                                                       we took the next step, developing a
                                                                                                                                       sustainability framework comprising our
                                                  SANDEEP BISWAS                                                                       Board-endorsed Sustainability Policy,
                                                  MANAGING DIRECTOR AND
                                                  CHIEF EXECUTIVE OFFICER                                                              supported by a set of objectives, metrics
                                                                                                             bjectives and industry
                                                                                                            O
                                                                                                            memberships                and targets for FY20, to measure and
                                                                                                     2017                              monitor our progress.
                                                                                                            ICMM, WGC and
                                                                                                            MCA memberships

                        We aspire to be an industry leader, a company that…

                                            Strives to ensure everybody goes home safe                                 Cares for the environment and
                                                        and healthy every day                                             responds to our climate

                                           Listens, develops, maintains strong community                                            Acts ethically
                                                     and stakeholder relationships                                                and transparently
NEWCREST 2019 SUSTAINABILITY REPORT

Formalising our                            Newcrest recognises that having a policy
                                           which clearly articulates our commitments
                                                                                                                                                    9

approach                                   on sustainability and is aligned to our
                                           industry principles, is critical to achieving

                                                                                                                                                VISION AND APPROACH
                                           our aspiration of being a leader in

                                                                                                                                                OUR SUSTAINABILITY
                                           sustainable mining.

  Newcrest                                 Newcrest aspires to be the Miner of Choice for our
                                           stakeholders. Our sustainability vision focuses on four
  Sustainability                           key areas: everybody going home safe and healthy
  Policy                                   every day, caring for the environment, developing and
                                           maintaining strong relationships with our communities
                                           and governments, and acting ethically and transparently.

  To achieve this, we will strive to:
  –– create a work environment where everyone can go home safe and healthy every day and where
     everyone actively contributes to this outcome;
  –– create a diverse and inclusive environment where everyone feels safe, valued and supported to bring
     their whole unique self to work;
  –– build a workforce that represents the communities in which we operate, and attract and retain the
     right people;
  –– establish processes to identify and manage risks and opportunities for efficient use of energy and
     water, to manage emissions linked with climate change and reduce or prevent waste generation;
  –– contribute to the conservation of biodiversity by implementing integrated approaches to land use
     planning and environmental management in areas affected by our operations;
  –– deliver sustainable and long-term benefits in a manner that supports and respects the rights and
     aspirations of the communities in which we operate;
  –– respect and strive to protect the human rights of our host community members in all our own dealings
     with them, and seek honest and open relationships built on mutual trust;
  –– honour the cultural heritage, customs and traditions of all Indigenous peoples touched by our
     activities and build cultural awareness across all of our operations;
  –– build relationships with our suppliers to optimise value through safe, efficient, continuous
     improvement and innovation;
  –– engage openly, honestly and regularly with our host governments and people affected by our
     operations and consider their views in our decision-making;
  –– uphold ethical business practices and comply with all legal requirements in all jurisdictions where we
     operate; and
  –– monitor, measure, report and assure our sustainability performance against public objectives and
     targets on a regular basis.
  We will apply our Risk Management Framework to manage our sustainability risks. By delivering on these
  commitments, we will maintain and enhance our licence to operate as we strive to become an industry
  leader in sustainable mining. This policy is to be read in conjunction with all other Newcrest policies
  available on our website.
  All Newcrest employees, contractors and suppliers are required to comply with these commitments.
OUR APPROACH
           TO SUSTAINABILITY

  10
                               Our                                           Objective

                                                                             Zero fatalities and life-changing injuries
                                                                                                                               Status

                                                                                                                                   See page 17

                               progress                                      10% annual reduction in TRIFR                         See page 17. TRIFR decreased from 2.4
                                                                                                                                   per million hours worked to 2.3 (3%)(1),

                               in FY19
                                                                                                                                   which did not meet target. As our TRIFR
OUR PROGRESS

                                                                                                                                   performance improves, this annual target
                                                                                                                                   becomes more challenging each year.
IN FY 19

                                                                             Year-on-year improvement in local workforce           See page 48
                                                                             participation and increase in female
                               In FY19 we improved our sustainability        representation in line with set targets
                               performance as well as our operational
                                                                             Further improve our Organisational Health             See page 15
                               and financial performance, whilst also        to top quartile
                               growing the business.
                                                                             Implement environmental database                      See page 27
                               We increased our focus on improving           tool (EQuIS) at at least three operations
                               our sustainability reporting systems,         to support water and environmental
                                                                             data reporting
                               in particular data collection and
                               verification processes across                 Develop a Climate Change Policy and                   See page 21
                               our business. This supports our               associated greenhouse gas emissions
                               reporting against the GRI sustainability      reduction targets
                               and mining industry-specific indicators.      100% of security employees and                        See page 46
                                                                             contractors trained in the Security Code
                               In FY20 Newcrest will continue                of Conduct
                               to work towards an evolved set of
                               sustainability objectives, in line with       All sites to implement a standardised                 See page 47
                                                                             community grievance management system
                               our Sustainability Policy and our             that includes close-out reporting of grievances
                               commitments to ICMM, the WGC
                               Responsible Gold Mining Principles            Social performance and human rights                   See page 44
                               and the GRI. Our FY19 objectives              reviews to be conducted annually for all sites
                               and progress tracking are set out to          Implementation of a Social Performance                See page 37
                               the right.                                    management system at Australian
                                                                             operations and Corporate headquarters

                                                                             All sites to have cultural heritage                   In progress – see page 47. Telfer’s is
                                                                             management systems in place                           achieved. Lihir and Gosowong are yet
                                                                             and functioning                                       to implement their systems. Cadia’s is
                                                                                                                                   being refined.

                                                                            (1) % represents rounding from two decimal places.                            – Met      – Not met

                               Our targets to the end of FY20
                               

                               Safety                      Environment                Climate                        People                       Community

                               Safety                      Water                      GHG emissions                  Diversity and                Community
                               Zero fatalities or          Catchment-based            30% reduction in GHG           inclusion                    Group community
                               life-changing injuries      risk assessments           emissions intensity per        Increase % females           expenditure
                               and a further reduction     and updated                tonne of ore treated           and nationals in             contributions ≥1% of
                               in injury rates             water balances             by 2030 against the            the workforce and            Group total revenue
                                                           (where required)           2018 baseline. Deliver         leadership roles
                                                                                      Climate Change Policy
                                                                                      implementation plan

                               Health                      Biodiversity               Reporting                      Anti-bribery and             Stakeholder
                               Occupational exposure       Review operations’         Phased introduction            corruption risk              engagement
                               control plans at each       biodiversity risks and     of TCFD reporting              Identify high-risk           Stakeholder engage-
                               operation for top           update management                                         roles; 85% training          ment plans, cultural
                               three exposures             plans into ICMM-                                          compliance; seek             heritage management
                                                           aligned Biodiversity                                      high-risk supplier           plans and digital
                                                           Action Plans                                              compliance                   grievance management
                                                                                                                                                  system in place at
                                                                                                                                                  operations
NEWCREST 2019 SUSTAINABILITY REPORT

What matters most                                                                                                                                     11

– our material topics

                                                                                                                                                      WHAT MATTERS
                                                                                                                                                      MOST
Each year, in the production               This process helps us to identify          The FY19 material sustainability
                                           current and emerging material              topics rated as ‘high’ according to
of our Sustainability Report,              sustainability topics and to ensure we     the materiality process are listed
we undertake a materiality                 focus our performance information          below. In line with the GRI reporting
                                           on the appropriate GRI aspects in our      approach, we have elected to focus
assessment to determine the
                                           Sustainability Report. The assessment      our report on the corresponding GRI
information and performance                ranks the topics according to their        aspects rated as high. Although not
measures that matter most                  priority to both our stakeholders and      rated as high, we have also included
                                           Newcrest. Further detail about our         updates on our performance relating
to both our key stakeholders               materiality process is provided in the     to water stewardship, biodiversity,
and our business.                          Appendix on page 62.                       land management and waste rock.

  1                                          2                                         3
  Improving safety and health               Our climate change response               Growing our business
   aintaining our commitment to
  M                                           anaging Newcrest’s approach
                                             M                                          riving growth through expansion
                                                                                       D
  providing a safe and healthy workplace     to climate change mitigation and          of operational sites and exploration
  for employees and contractors through      adaptation, and the implications for      activities, including our approach
  effective systems, culture and secure      our operations, including physical        to water stewardship.
  operations. Managing health impacts        risks from climate change as well
  from malaria, mental health, pandemic      as transitional and market risks.
  and epidemic risks, diesel particulate
  matter (DPM) and other air pollutants.

  4                                          5                                         6
  Managing mine closure                      Working with our communities              Respecting human rights
   anaging the environmental and
  M                                           aintaining our social licence to
                                             M                                          anaging and protecting the human
                                                                                       M
  social considerations of mine closure,     operate by managing community             rights of Newcrest’s workers, local
  including land management and              expectations and relations, delivering    communities and other stakeholders.
  biodiversity.                              on mutually beneficial agreements,
                                             and investing in the development
                                             of the local communities in which
                                             Newcrest operates.

  7                                          8                                         9
  Managing our waste                         Ethical and transparent behaviour         Financial sustainability
   anaging the hazardous and
  M                                           elivering on Newcrest’s commitment
                                             D                                          and local economies
  non-hazardous waste materials              to high-quality governance,                anaging our financial performance,
                                                                                       M
  generated through Newcrest’s mining        transparency and ethical business         productivity and economic
  operations, including waste rock.          practices across the organisation.        sustainability.
OUR APPROACH
                  TO SUSTAINABILITY

      12
                        Our
                        performance overview –
OUR PERFORMANCE

                        highlights and challenges
OVERVIEW

                           1. Improving safety and health                    2. Our climate change response                     3. Growing our business

                                                                                                                                                    Agreement to acquire
                                  0           Fatalities
                                              and life-changing
                                              injuries
                                                                                                   New policy statement
                                                                                                                                   70%              70% JV interest in
                                                                                                                                                    Red Chris

                                                                  ↑                                Commitment to

                              2.3             TRIFR per million
                                              hours worked                   TCFD                  phased introduction
                                                                                                   of TCFD reporting
                                                                                                                                                    Havieron farm-in
                                                                                                                                                    agreement

                            TRIFR 10% year-on-year reduction                 Target of 30% reduction in GHG                           Wafi-Golpu not progressed due
                            target not met                                   emissions intensity per tonne of ore                     to delays in obtaining a Special
                                                                             treated by 2030 against a 2018 baseline                  Mining Lease

                           4. Managing mine closure                          5. Working with our communities                    6. Respecting human rights

                                              Operations’ closure                                  Electronic community                            Human rights reviews of
                                              (rehabilitation)                                     grievance management                            operations completed
                                              plans in place (1)                                   system in place                                 by Group team
                                                                                                   at operations
                                                                                                                                                        Australian
                                                                                                                                                                        ↑
                                                                                                                                 22.4%
                                              Externally audited

                              ü$                                             68.8%                 Local goods                                          female
                                              provisions for mine                                                                                       representation
                                                                                                   and suppliers
                                              rehabilitation                                                                                            at management
                                                                                                                                                        level

                            Strengthening social closure practice                Dust complaints at Cadia from                        Australian Indigenous management
                                                                                 nearby residents                                     representation still low

                           7. Managing our waste                             8. Ethical and transparent behaviour               9. Financial sustainability
                                                                                                                                     and local economies
                                                                                                   Anti-bribery and
                                              Tailings Management
                                              Framework developed               99%                corruption training
                                                                                                   completed on 99% (2)
                                                                                                                                 $561m
                                                                                                                                                            Statutory
                                                                                                                                                            profit
                                                                                                   of high-risk roles
                                              Published expert                                     Completed anti-
                                                                                     TOP
                                              review report on
                                              Cadia’s tailings facility
                                                                                200
                                                                                                   bribery and corruption
                                                                                                   risk review of top
                                                                                                   200 suppliers
                                                                                                                                      $55m                  Community
                                                                                                                                                            expenditure (3)

                                 Implementation of expert review                 Managing varying risks                                     Change in community
                                 report recommendations on                       across jurisdictions                                       expenditure regulations created
                                 Cadia’s tailings facilities                                                                                tension around Gosowong

                        (1) Gosowong and Cadia plans updated in FY20.
                        (2) Residual 1% relates to trainee absences/unavailability.
                        (3) Community expenditure includes total costs of our community programmes. Our forward target is community expenditure of ≥1% of total Group revenue.
NEWCREST 2019 SUSTAINABILITY REPORT

  Our                                                Newcrest is a culturally
                                                     diverse company operating
                                                                                                                                                                13

  stakeholders                                       across many countries
                                                     and sites.

                                                                                                                                                            OUR STAKEHOLDERS
                                                     Newcrest’s diverse range of stakeholders          The objective is both to keep stakeholders
OUR STAKEHOLDERS

                            Employees &              reflects that we operate across many              informed and to collaboratively explore,
                             contractors             countries and collaborate with a range of         record and respond to our stakeholders’ issues
                                                     partners. Our methods of engaging our             and concerns. We respect that stakeholders
                   Shareholders      Communities     stakeholders are tailored to suit their needs.    have different opinions and expectations of
                                                     Newcrest’s approach is to responsively            our business, and we aim to achieve outcomes
                                                     build and maintain open and constructive          through creating genuine understanding.
                   Government            Suppliers
                   & regulators                      relationships by understanding and respecting
                                                                                                       We work closely with our employees,
                                                     feedback and others’ points of view.
                                                                                                       local communities, governments and
                             Customers               Specific Newcrest teams and roles are             regulators, investors, business partners
                                                     accountable for developing and managing           and the broader mining industry. We also
                                                     particular stakeholder relationships; and         engage with non-government organisations,
                                                     both formal and informal methods are              education and research bodies, the media
                                                     employed, depending on the nature of the          and general public.
                                                     relationship and communication context.
                                                                                                       In addition to our regular local
                                                     Details regarding the engagement methods
                                                                                                       communications and outreach with our
                                                     we use with each stakeholder group are
                                                                                                       stakeholders, we publicly disclose our
                                                     provided in the Appendix on page 64.
                                                                                                       performance and aspirations through
                                                                                                       Newcrest’s corporate reporting process.

        Stakeholder                                  Engagement activities

        Employees and contractors                    Employee briefings, intranet, social media, email, newsletters, social events, notice boards,
                                                     departmental site and toolbox meetings, performance reviews, site general manager town
                                                     hall meetings, direct engagement between people leaders and their teams, and annual
                                                     Organisational Health Survey participation.

        Shareholders and investors                   Annual reports, quarterly production reports, half-yearly financial reporting, website,
                                                     email, investor briefings, one-one-one discussions, investor days, conference calls, market
                                                     announcements, annual general meeting, industry conferences, and social media.

        Local communities                            Community Relations team visits, resident and community meetings, site visits,
                                                     communication and feedback forums with leaders and communities, complaints and grievance
                                                     mechanisms, sponsorships and partnerships, collaborative agreements, media engagement
                                                     on local initiatives, community newsletters, factsheets, websites and social media.

        Government and regulators                    Face-to-face meetings, regular briefings, and direct engagement.

        Suppliers                                    Collaborative guidelines, out-to-market approaches, face-to-face discussions, performance
                                                     meetings, and contractual agreements.

        Customers                                    Market tenders, meetings, reports, face-to-face discussions and site visits.
OUR APPROACH
               TO SUSTAINABILITY

14                   Our                                               This aligns with Newcrest’s strategy and         Finally, ManagingMatters helps our people
                                                                       business transformation aspirations,             leaders acquire targeted management
                     people                                            including our culture change objectives.         skills, such as delegation, giving and
                                                                       We are working closely with all teams across     receiving feedback, and coaching others.
                                                                       Newcrest to build an increasingly diverse        In FY19, more than 1,400 supervisor-level
OUR STAKEHOLDERS

                     Our first and greatest responsibility
                                                                       and inclusive business.                          employees attended ManagingMatters
                     is ensuring that our people go home
                                                                                                                        across all our sites.
                     safe and healthy from work every day.             To ensure we attract and retain the right
                     The wellbeing and capability of our               people, our hiring decisions and promotions      At Lihir, the LeadingMatters and
                     employees are fundamental to Newcrest’s           are merit-based and align with our               ManagingMatters programmes were
                     business success.                                 responsibility to have a workforce that          integrated with NewSafe, our safety
                                                                       best represents the communities in which         culture programme, and Management
                     Our long-term commitment to
                                                                       we operate, while delivering on business         Operating System (MOS) training to form
                     safety continues through our Safety
                                                                       requirements.                                    the locally titled ‘Trupla Lida’ programme,
                     Transformation Plan and, in particular,
                                                                                                                        attended by more than 700 supervisors,
                     through the strengthening of our                  We offer our high-potential employees a
                                                                                                                        superintendents and managers. Lihir
                     safety culture via NewSafe. In FY19,              robust mentoring programme, prioritise
                                                                                                                        managers and superintendents helped lead
                     a second level of NewSafe, ‘NextGen’,             them for leadership development
                                                                                                                        the sessions for supervisors, providing
                     was delivered throughout Newcrest as              programmes, and provide relevant
                                                                                                                        an excellent example of the ‘leader as
                     described on page 18.                             leadership experiences. Further detail and
                                                                                                                        teacher’ approach.
                                                                       workforce data on our efforts to improve
                     In conducting our business, including liaising
                                                                       diversity and inclusion are on page 48, in the
                     with external stakeholders, our employees
                                                                       context of human rights.
                     comply with relevant laws, regulations and
                     Newcrest policies, and our senior leaders         Developing strength and expertise
                     are informed when significant stakeholder
                                                                       In FY19, Newcrest continued to use
                     concerns arise.
                                                                       three distinct programmes to develop
                     The local communities in which we                 the leadership and management skills
                     work comprise Newcrest’s employees,               of our people.
                     contractors, suppliers and their families.
                                                                       The aim of TransformationMatters is to
                     It is at the local level that we can have the
                                                                       create connection among leaders from
                     greatest impacts. Details of how we work
                                                                       across our business in order to foster
                     with our communities are provided on
                                                                       a collaborative approach to leading
                     page 36.
                                                                       Newcrest. TransformationMatters
                     The importance of diversity                       involves periodic workshops delivered to
                                                                       the Transformation Leadership Team (TLT).
                     Our approach to diversity and inclusion is an
                                                                       The TLT includes the Executive Committee
                     essential component of our People pillar. It
                                                                       and approximately 22 leaders from across
                     is a fundamental part of our vision, values
                                                                       the company whose combined portfolio
                     and culture.
                                                                       significantly impacts the performance
                     To help create a workplace where everyone         of the business. The programme has
                     feels comfortable bringing their ‘whole unique    also been run for leadership teams and
                     self’ to work, we have a dedicated diversity      superintendents at Cadia, Lihir and Telfer.
                     and inclusion strategy and a supporting policy.
                                                                       LeadingMatters is focused on building
                     We know having a diverse and inclusive work
                                                                       leaders’ self-awareness and personal
                     environment goes beyond gender – diversity is
                                                                       development to foster values-based
                     not just about employing females and setting
                                                                       leadership and grow high-performing teams.
                     gender targets – it is about having a culture
                                                                       More than 400 of our leaders, including
                     that values and respects people’s differences,
                                                                       members of our Executive Committee, have
                     as well as supporting one another to achieve
                                                                       participated in LeadingMatters since it
                     great things, together.
                                                                       launched in 2018.

                                                                                                                            Lihir
NEWCREST 2019 SUSTAINABILITY REPORT

Speak Out                                       Organisational Health                          To sustain our top-quartile performance
                                                                                                                                                       15
Speaking up about concerns is a critical        In FY19, we continued to measure               in the coming year, Newcrest will focus on
element of both safety and ethical              Newcrest’s Organisational Health through       the practices of establishing an open and
behaviour. The Speak Out service, which         our annual survey, enabling us to benchmark    trusting environment, involving employees,
has been a global service at Newcrest since     the business against other organisations.      and enhancing our talent development

                                                                                                                                                   OUR STAKEHOLDERS
2011, is a confidential and anonymous           The survey measures employees’ views of        efforts. In addition, we will ensure we
way for all current or former Newcrest          management systems and the practices           continue to engage all employees, especially
employees, officers, contractors,               we employ. In the fifth year of the survey,    those working in front-line roles.
consultants, suppliers or relatives of those    we increased two points to 73, from 71
people, to report misconduct, anything          in FY18, achieving our aspiration to be
believed to be illegal or unethical, safety     a top-quartile company in relation to
                                                                                               Average training hours per year by
issues, or breaches of our Code of Conduct,     organisational health.                         employee category (company-wide)
through an independent third party.
                                                Newcrest has identified seven management
Australian laws which came into effect on       practices as our priority for improvement.     Senior Executive 12.95
1 July 2019 further protect people who          During 2019, we achieved top quartile
speak out about misconduct in companies         measures for three of those priority           General Manager     19.93
such as ours. To support these laws, we         practices – operational discipline, personal
updated our global Speak Out Policy, which      ownership, and bottom-up innovation. All       Manager                         40.22
applies to all our operations and activities.   37 practices measured within the survey
An updated Speak Out Standard and new           were above second quartile level.              Supervisor                    36.92
Speak Out Procedure guides people through
the process.                                                                                   Operator                              49.19
OUR APPROACH
             TO SUSTAINABILITY

16
                                 Our                                         Public affairs and social performance
                                                                             are standing agenda items at all
                                 leadership                                  regular board meetings.
OUR LEADERSHIP

                                 Sustainable development considerations      The scope includes our annual               the Code of Conduct, the Director
                                 are integrated into Newcrest’s decision-    sustainability reporting process.           Independence Policy, the Director
                                 making processes, and the Newcrest                                                      Conflicts of Interests Policy, the
                                                                             Our Sustainability Policy was introduced
                                 Board is ultimately accountable for                                                     Anti-Bribery and Corruption Policy, the
                                                                             in June 2019 and supports the
                                 ensuring we execute our sustainability                                                  Market Disclosure Policy, the Market
                                                                             obligations of the Executive Committee
                                 approach. Public affairs and social                                                     Releases and Investor Relations Policy,
                                                                             to exercise due diligence in decisions
                                 performance are standing agenda                                                         the Media and External Communications
                                                                             relating to sustainability risks and to
                                 items at all regular Board meetings.                                                    Policy, and the Securities Dealing Policy.
                                                                             disclose such risks to the Safety and
                                 The Safety and Sustainability               Sustainability Committee. Newcrest’s        All relevant employees undertake
                                 Committee considers sustainable             Communities Policy, Environmental           regular training to ensure they
                                 development matters and assists             Policy, and Safety and Health Policy also   understand their obligations under
                                 the Board by overseeing, monitoring         enhance the sustainable development         Newcrest’s Code of Conduct. Some
                                 and reviewing Newcrest’s practices          of our operations and are supported by      employees undertake training in relation
                                 and governance in sustainability,           performance standards.                      to other policies referred to above.
                                 environment, safety, occupational                                                       Training on our new sustainability
                                                                             In addition, Newcrest has a range of
                                 health, and social performance, including                                               policies will be rolled out in FY20.
                                                                             policies supporting ethical business
                                 the human rights and security of
                                                                             principles and practices. These include
                                 communities, employees and operations.

                                 Board
                                 Safety and Sustainability Committee

                                 ROGER HIGGINS                    PHILIP AIKEN AM                  PETER TOMSETT
                                 Independent                      Independent                      Independent
                                 Non‑Executive Director,          Non‑Executive Director           Non‑Executive Director
                                 Chairman, Safety and
                                 Sustainability Committee

                                 Board
                                 of Directors
                                 PETER HAY                        GERARD BOND                      XIAOLING LIU                     VICKKI MCFADDEN
                                 Independent Non-Executive        Finance Director and             Independent Non-Executive        Independent Non-Executive
                                 Chairman                         Chief Financial Officer          Director                         Director

                                 SANDEEP BISWAS                   PHILIP AIKEN AM                  ROGER HIGGINS                    PETER TOMSETT
                                 Managing Director and            Independent Non-Executive        Independent Non-Executive        Independent Non-Executive
                                 Chief Executive Officer          Director                         Director                         Director
NEWCREST 2019 SUSTAINABILITY REPORT

Our                                                                                                                                                              17

material topics

                                                                                                                                                             1. IMPROVING SAFETY
                                                                                                                                                                 AND HEALTH
1
Improving
safety and health

Material                                        Performance                                           The industry average for TRIFR for ICMM
                                                                                                      member companies was 3.4 per million
sustainability topic                            in FY19                                               hours worked. While Newcrest’s reduction
                                                                                                      in TRIFR in FY19 was a pleasing result, we
We believe that a strong and enduring           Consistent with our safety vision,                    did not meet our target of a 10% decrease
commitment to the health and safety of          our objectives and key performance                    year-on-year. As our TRIFR performance
our workforce best reflects our values and      measures under safety are zero fatalities             improves, this annual target becomes more
underpins and sustains optimal business         and life-changing injuries and a 10%                  challenging. As such we have reviewed
performance. This includes mitigating           year-on-year reduction in our TRIFR.                  our safety target setting as part of our
potential occupational health risks             Our zero fatality and life-changing                   new sustainability objectives and metrics.
and impacts.                                    injury target was achieved in FY19                    Into FY20 and beyond our safety target is
                                                and, along with further reduction in                  now a year-on-year improvement in TRIFR,
                                                our lost time injury frequency rate                   with zero fatalities or life-changing injuries.
                                                (LTIFR) from 0.5 to 0.4 per million hours
Our                                             worked, our TRIFR decreased from
approach                                        2.4 per million hours worked to 2.3 (3%)(1).

Caring about people is one of our values,
ultimately contributing to a culture where
health and safety are at the forefront of
everything we do. The most important
                                                Newcrest TRIFR FY17–FY19 per million hours worked (#)(2)
measure of our success is that we create
a work environment where everyone can
go home safe and healthy every day and          FY19                                                2.3
where everyone can actively contribute          FY18                                                     2.4
to this outcome.
                                                FY17                                                                     3.3
Our Safety Transformation Plan continues
to direct our efforts and deliver results.
This is supported by the broader Forging
a Stronger Newcrest strategy and our            Newcrest LTIFR FY17–FY19 per million hours worked (#)(2)
alignment with ICMM Principle 5 – Pursue
continual improvement in health and safety
                                                FY19                                               0.4
performance with the ultimate goal of
zero harm.                                      FY18                                                           0.5
                                                FY17                                                                     0.6
                                      FY 2016

                                      FY 2015

                                      FY 2014
                                                (1) % represents rounding from two decimal places.
                                                (2) In line with ICMM guidelines, the calculation of company-wide TRIFR and LTIFR only includes
                                                    operational sites and joint ventures in which Newcrest has a controlling interest.
OUR APPROACH
                   TO SUSTAINABILITY

    18                                      Our Safety                                                   Our Safety Transformation Plan
                                            Transformation Plan                                          focuses on three key pillars to
                                                                                                         achieve our safety vision of
1. IMPROVING SAFETY

                                                                                                         ‘everybody going home safe
                                                                                                         and healthy every day’.
    AND HEALTH

                                                                     Safety is strongest when the three
                                       KEY PILLARS

                                                                     elements of culture, controls and systems       A stronger safety culture
                                                                     are aligned. Our safety culture, behaviours     through NewSafe;
                                                                     and actions are led by NewSafe. Our Critical
                                                                     Control Management programme puts in            Critical Control
                                                                     place the review, approval and verification     Management; and
                                                                     steps for high-risk tasks. Process Safety
                                                                     Management targets wider system risks,          Robust Process Safety
                                                                     such as operating plant designs and             Management.
                                                                     chemical and energy hazards.

                                                                     NewSafe
                                       NEWSAFE

                                                                     Newcrest initiated the NewSafe safety
                                                                     culture change programme in 2015 and has
                                                                     deployed it to all sites.
                                                                     To ensure that it continues to be effective
                                                                                                                              3                       1
                                                                     and relevant, during FY19 we developed
                                                                                                                           NewSafe                 NewSafe
                                                                     a follow-on programme to NewSafe
                                                                                                                           Coaching               Behaviours
                                                                     called ‘NextGen’.
                                                                     NewSafe NextGen builds on the material
                                                                     covered in the original NewSafe Leadership                         2
                                                                     course and incorporates feedback,                               NewSafe
                                                                     information and data gathered since it was                     Leadership
                                                                     initially launched. NextGen reinforces key
                                                                     messages relating to safety leadership and
                                                                     continues to encourage people to identify
                                                                     and speak up when unsafe behaviours
                                                                     and conditions are encountered. To date,
                                                                     approximately 90% of our workforce have
                                                                     attended NewSafe NextGen sessions.

                                                                     Critical Control Management (CCM)
                                       CRITICAL CONTROL MANAGEMENT

                                                                     Since its inception in 2016, we have            EGMs
                                                                     completed more than 6,000 System                GMs
                                                                     Verifications and 700,000 Field Critical
                                                                                                                     Department                         System          1,657
                                                                     Control Checks under the CCM programme.                                                        FY19
                                                                                                                     Managers                        Verification
                                                                     During FY19 the programme continued                                              Verify the
                                                                     to be strong in terms of verifications and                                   management system
                                                                     business application at all levels. New tools
                                                                     enabled improved reporting and analytical       Supervisors
                                                                                                                     and above                            Field                       302k
                                                                     capability for the CCM data. We continue
                                                                                                                                                 Critical Control Checks               FY19
                                                                     to see an improvement in the percentage                             Verify controls are effective in the field
                                                                     of CCM verifications conducted using our
                                                                     mobile device app. In FY19 we conducted         Frontline
                                                                     over 1,650 System Verifications and             operators
                                                                                                                                                       Operator                               Integrated
                                                                     300,000 Field Critical Control Checks                                       Critical Control Checks                        with existing
                                                                     as well as our front-line Operator Critical                   Verify controls are in place prior to and during work         systems
                                                                     Control Checks which are integrated into
                                                                     existing systems.
NEWCREST 2019 SUSTAINABILITY REPORT

                                                                                                                                                                                   19

                                                                                                                                                                               1. IMPROVING SAFETY
                                                                                                                                                                                   AND HEALTH
                                                                            Health and hygiene
PROCESS SAFETY MANAGEMENT

                            The third pillar of our Safety Transformation                                                  gases. This information assists with repairs
                            Plan, robust Process Safety Management,         Some of the key health and hygiene issues      and also allows the site ventilation teams
                            aims to systematically and comprehensively      for Newcrest are:                              to better design ventilation systems
                            manage the integrity and containment of                                                        throughout the mine to control workforce
                                                                            –– fatigue;
                            high-energy and toxic processes to protect                                                     exposures to DPM.
                            our people and the environment. To provide      –– monitoring and controlling potential
                                                                               exposures, most specifically to DPM and     During the reporting period, Telfer and
                            further focus and direction, Newcrest
                                                                               respirable dust; and                        Cadia worked with occupational physicians
                            sourced additional resources during FY19
                                                                                                                           to review and update health surveillance
                            with an immediate priority to address the       –– mental and physical health and wellbeing.
                                                                                                                           programmes to better monitor workers for
                            findings of process safety audits conducted
                                                                            We continue to implement and improve           potential health effects from workplace
                            across its operations.
                                                                            programmes to monitor, maintain                exposures. Cadia partnered with Insurance
                            All three pillars of our Safety                 and improve the health of our people           and Care NSW (iCare) to deliver health
                            Transformation Plan are supported by a          throughout the business. Programmes            surveillance for the workforce, which
                            foundation of the right systems and tools.      look at occupational health risks, as well     includes onsite screening using the ‘iCare
                            In FY19, some key activities included:          as lifestyle health risks.                     Lung Bus’. This was followed up with
                            –– The second round of audits at all sites                                                     additional screening with specialist medical
                                                                            Fatigue                                        personnel for anyone identified during
                               of the Newcrest Health Safety and
                               Environment Management System                To reduce the risk of fatigue-related          the initial screening as requiring more
                               (HSEMS), Health and Hygiene Standards        workplace incidents, operational sites         comprehensive health surveillance.
                               and Environment Standards.                   use fatigue management plans. These
                                                                                                                           Telfer implemented a respiratory
                                                                            focus on areas that may cause workplace
                            –– A comprehensive review of the existing                                                      protection programme, which involved
                                                                            fatigue such as work design, including shift
                               Major Hazard Standards, with a focus                                                        health surveillance checks of any personnel
                                                                            rostering and camp facilities, as well as
                               to improve and better align with CCM                                                        required to wear respiratory protective
                                                                            factors related to lifestyle and health.
                               content. An update of the standards is                                                      equipment. The process included:
                               planned to be released in FY20.              We have developed a Company-wide Fatigue       –– fit testing to ensure the respiratory
                            –– The streamlining of the Newcrest             Management Standard that provides                 protective equipment fitted correctly;
                               Management of Change system to               consistent minimum standards to mitigate
                                                                                                                           –– and enforcing the requirement for
                               improve functionality and efficiency at      fatigue risks across the organisation. In
                                                                                                                              workers using respiratory protective
                               all levels of the business and functions.    FY19, we developed and delivered fatigue
                                                                                                                              equipment to be clean shaven.
                                                                            management training across the business,
                                                                            with training materials translated into        During the year Lihir, Cadia and Telfer all
                                                                            Indonesian, Tok Pisin (PNG) and Spanish, as    completed surveys to identify noise exposure
                                                                            well as including site-specific information    risks and develop risk control plans. Gosowong
                                                                            such as managing fatigue during Ramadan        is scheduled to complete a survey in FY20.
                                                                            for our teams in Indonesia.
                                                                                                                           Physical and mental health
                                                                            Potential exposures                            All sites are working to improve their
                                                                            Reducing workplace exposures continues         wellbeing programmes with a strong
                                                                            to be a key part of our health and hygiene     focus on mental wellness. The Melbourne
                                                                            programme with all sites undertaking           office delivered a series of mental
                                                                            activities to identify and reduce exposures.   health first-aid training courses in FY19
                                                                            Gosowong purchased DPM emissions               to ensure that the office is suitably
                                                                            monitoring equipment to supplement the         resourced with personnel who can
                                                                            existing exhaust gas testing equipment         respond to both physical and psychosocial
                                                                            used onsite. This equipment allows the         health issues within the workplace.
                                                                            site maintenance team to undertake
                                                                                                                           Several of our sites implemented wellbeing
                                                                            comprehensive emissions testing of onsite
                                                                                                                           programmes designed to help employees
                                                                            diesel-powered vehicles to identify when
                                                                                                                           and contractors to maintain and improve
                                                                            a vehicle is running poorly and generating
                                                                                                                           their physical and mental health.
                                                                            higher levels of DPM or hazardous exhaust
OUR APPROACH
                   TO SUSTAINABILITY

                                          Speaking up for safety                                        Safety projects are
                               INSIGHTS

    20

                                          Safety remains front and centre of everything we
                                          do as we strive to remain free of fatalities and
                                                                                                        hotting up
                                                                                                        Our Lihir operation is located on an island in a volcanic
1. IMPROVING SAFETY

                                          life‑changing injuries and continue to reduce our
                                          recordable injury rate.                                       caldera which retains remnant heat within its rock.
    AND HEALTH

                                                                                                        In the open pit, rock temperatures can reach up to
                                          In FY19, we continued the rollout of our Safety               150 degrees Celsius. The presence of the geothermal
                                          Transformation Plan, with NewSafe NextGen building            conditions presents a unique challenge to our teams
                                          on the strengths of previous NewSafe training.                to maintain safe and efficient operations.
                                          NewSafe NextGen focuses on courage and addressing             Lihir’s historic open pit mining practices require our
                                          fear, creating a culture where we foster courage among        drill and blast personnel to work in conditions where
                                          our workforce and eliminate the fear of speaking up.          geothermal factors and elevated temperatures pose
                                          It also introduces tools to help people make the safest       two potential risks:
                                          decisions, reinforcing our message that everyone is a
                                                                                                        –– geyser events – where steam and water is ejected
                                          safety leader.
                                                                                                           from drilled holes; and
                                          During FY19, we held NewSafe NextGen workshops at             –– geothermal outbursts – where trapped pockets
                                          all sites and the Melbourne office, with 4,500 employees         of steam can vent through the rock.
                                          and permanent contractors completing training by
                                          May 2019.                                                     An innovative programme of engineering works,
                                                                                                        ‘Safe Mining to 150 degrees Celsius’ is underway
                                          Our safety transformation work is reaping rewards with        to enable us to safely mine in areas of higher
                                          Pulse Check surveys recording improvements at sites.          temperatures.
                                          For example, the 2019 Pulse Check at Cadia found
                                          consistent, gradual improvement in site-wide results for      The programme covers each component of the open
                                          supervisors’ safety leadership during the past three years.   pit mining system with innovative mechanised and
                                                                                                        robotic solutions:
                                          Our long-term commitment to our Safety
                                                                                                        –– ‘Nil on foot’ aims to keep our operators safe by
                                          Transformation plan will continue in FY20.
                                                                                                           developing and implementing robotic technology
                                                                                                           that lets personnel undertake their work from the
                                                                                                           safety of a vehicle. This requires prototyping and
                                                                                                           deploying robotic solutions for hole temperature
                                                                                                           and depth measurement, high explosive assembly
                                                                                                           loading, emulsion product loading and blasthole
                                                                                                           geology sampling.
                                                                                                        –– ‘Nil on bench’ targets the removal of our operators
                                                                                                           from the pit floor to protect them from geothermal
                                                                                                           outbursts. Current projects include the deployment
                                                                                                           of tele-remote technology on dozers, shovels and
                                                                                                           blasthole drilling rigs.
                                                                                                        We continue to work closely with key technology
                                                                                                        providers to rapidly build Newcrest’s capability to
                                                                                                        mine safely at rock temperatures of up to 150 degrees
                                                                                                        Celsius. This new capability may help offset the extent
                                                                                                        to which artificial pit cooling is required and may support
                                                                                                        the continued geothermal power programme at Lihir.

                                              Lihir
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