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Sandfire Resources NL ABN 55 105 154 185 Level 1, 31 Ventnor Ave, West Perth Western Australia 6005 Email: [email protected] Web: www.sandfire.com.au
ASX/Media Release 7 October 2015
2015 SUSTAINABILITY REPORT
Sandfire Resources NL (ASX: SFR; 'Sandfire') is pleased to advise that it has today released its inaugural Sustainability Report, for the year ended 30 June 2015.
The Sustainability Report - which complies with the G4 Global Reporting Initiative (GRI), the leading international framework for sustainability reporting - provides a comprehensive overview of the Company's sustainability performance, including details regarding Sandfire's corporate governance systems, social responsibility, environmental, health and safety, and employee relations performance and targets.
The Company has delivered a number of significant achievements and developments in these areas over the past 12 months, with key highlights including:
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Royalty and company tax of $43.1 million to the Government and Native Title Claimant Groups (paid and payable);
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Commencement of construction of a 10.6 megawatt solar power station at DeGrussa, an innovative
$40 million project which represents the largest integrated off-grid solar and battery storage facility in Australia, and one of the largest in the mining industry worldwide; and
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Ongoing support for a wide variety of local community initiatives including the Meekatharra Outback Festival and local Aboriginal commercial and community development initiatives.
Sandfire's Managing Director, Mr Karl Simich, said the release of the 2015 Sustainability Report represented another significant milestone in the Company's continued growth and development as a successful mid-tier mining company.
'The 2015 financial year has been another successful and productive period for us on the back of a continued strong operational performance by our flagship DeGrussa Copper-Gold Mine in WA,' Mr Simich said.
'However, financial and operational success is only one part of our business, providing a foundation which ensures we can continue to maximise the opportunity to create value for all of our stakeholders. We are committed to continuing to operate our business in a sustainable manner that ensures our people are safe and well-supported, local communities prosper and the environment is well cared for.
'We are proud of our achievements and developments in this area, and we are pleased to outline them in this report - which reflects our commitment not just to deliver a strong financial performance, but to be an 'employer of choice' that offers a positive and safe workplace and to operate in a sustainable and ethical way with our communities,' Mr Simich added.
Sandfire's 2015 Sustainability Report and GRI Index is available on the Company's website, www.sandfire.com.au.
For further information contact: Sandfire Resources NL
Karl Simich - Managing Director/CEO
Office: +61 8 6430 3800
ENDS
Read Corporate
Mobile: +61 419 929 046 (Nicholas Read)
Mobile: +61 421 619 084 (Paul Armstrong)
2015 SUSTAINABILITY REPORT
Corporate Directory
DIRECTORS
Mr Derek La Ferla Independent Non-Executive Chairman Mr Karl Simich Managing Director & Chief Executive Officer Mr Paul Hallam Independent Non-Executive Director
Mr W John Evans Non-Executive Director
Mr Robert Scott Independent Non-Executive Director
MANAGEMENT & COMPANY SECRETARY
Mr Michael Spreadborough Chief Operating Officer
Mr Matthew Fitzgerald Chief Financial Officer & Joint Company Secretary
Mr Robert Klug Chief Commercial Officer & Joint Company Secretary
PRINCIPAL PLACE OF BUSINESS & REGISTERED OFFICE
Level 1, 31 Ventnor Avenue West Perth WA 6005
T: +61 8 6430 3800
F: +61 8 6430 3849
W: www.sandfire.com.au
SHARE REGISTRY
Security Transfer Registrars Pty Ltd 770 Canning Highway
Applecross WA 6153
T: +61 8 9315 2233
F: +61 8 9315 2233
E: [email protected]
HOME EXCHANGE
Australian Securities Exchange Limited Exchange Plaza
2 The Esplanade
Perth WA 6000
ABN
55 104 154 185
ASX CODE
Ordinary fully paid shares: SFR
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About this Report
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Performance Highlights
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Chairman & Managing Director's Report
6 THE SANDFIRE STORY
8 Business Overview
8 Governance
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How we Manage Sustainability
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Risk Management
10 Code of Conduct
10 Whistleblower Protection Policy
10 Workforce Breakdown
12 SUSTAINABILITY AT SANDFIRE
13 Our Stakeholders and Material Issues
14 Our Material Issues
16 OUR SOCIO-ECONOMIC CONTRIBUTION
17 Economic Contribution
17 Community Investment
20 OUR SUPPLY CHAIN
22 Contractors and Suppliers
22 Materials
22 Engaging Contractors and Suppliers
23 Case Study: Yagahong Alliance
23 2016 Targets
24 Case Study: School Visit with Qube
24 Product Stewardship - Beyond the Mine Gate
25 Our Copper
25 How we Transport Copper
25 2016 Target
26 OUR PEOPLE
28 Professional Development and Training
29 Performance Reviews
29 Employee Assistance Program
29 2016 Targets
30 Diversity
31 Remuneration Balance
33 Case Study: Women in Sandfire Group
34 Aboriginal Employment
34 Cultural Awareness Training
34 2016 Targets
35 Safety Performance and Management
37 Health and Wellness
37 Case Study: The DeGrussa Wellness Program
38 Communication and Engagement
38 Case Study: Working Remotely Using the Spot Tracker
39 Emergency Preparedness
39 Case Study: CME Mines Rescue Surface Competition
40 OUR OPERATIONS
42 Energy Use
44 Case Study: Reducing Power Use at the DeGrussa Processing Plant
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Water Management
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Emissions and Climate Change
46 Greenhouse Gas Emissions
48 Dust
48 Case Study: DeGrussa Solar Power Project
49 Land Management
49 Mine Closure Planning
49 Rehabilitation of Exploration Sites
50 OUR COMMUNITY
52 Aboriginal Stakeholders
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2016 Targets
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Case Study: Mitakoodi Soccer Team
53 Supporting the Government During the Doolgunna Bushfires
53 Meekatharra Race Day
53 Get Into Resources - School Visit
54 GRI Content Index
ABOUT THIS REPORT
This is Sandfire's first Sustainability Report, prepared in accordance with the Global Reporting Initiative G4 framework. The report spans the period from 1 July 2014 until 30 June 2015. The report covers our DeGrussa Copper-Gold Mine in Western Australia as well as our other Australian interests.
For any feedback, please contact Robert Klug, our Chief Commercial Officer, on (08) 6430 3800.
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PERFORMANCE HIGHLIGHTS
Total copper production for the year was 67,154 tonnes and gold production was 37,386 ounces at a C1 cash operating cost of US$1.09 per pound of payable copper, in line with market guidance. This is a great credit to our operations team at DeGrussa.
ANNUAL NET PROFIT AFTER TAX
$69.0M
METAL SALES REVENUE
$548.6M
Copper 67,903 tonnes
Gold 37,194 tonnes
TOTAL ENERGY USE
& CARBON EMISSIONS
1,422,111
GJ of energy
CO2
TAXES & ROYALTIES
$43.1M
OPERATIONS & EXPLORATION
TOTAL
59 STAFF
256
197
GENDER BREAKDOWN
220 Full-time
12 Part-time
24 Casual
TOTAL RECORDABLE INJURY FREQUENCY RATE
9.3
for 2015
SANDFIRE RESOURCES SUSTAINABILITY REPORT 2015 3
CHAIRMAN & MANAGING DIRECTOR'S REPORT
At Sandfire, we recognise that we are part of a global community. As part of this community, we are committed to operating our business in a sustainable manner that ensures our people are safe and well- supported, local communities prosper and the environment is well cared for so that it benefits future generations.
The mining sector remains a significant local and international industry as global demand for resources continues to improve living standards and assist economic growth. The industry is facing complex challenges, such as lower commodity prices,
climate change impacts, community acceptance, environmental concerns and the need for companies to show leadership and stewardship of natural resources. However, these challenges can also be opportunities - and the industry is in a unique position to respond.
Companies can be courageous and innovative in their approach to sustainability, and Sandfire has both the opportunity and the capacity to be a key participant
in this approach. We are committed to continuously improving the way we do business.
This year marks an important milestone for Sandfire as we publish our first Sustainability Report. We are proud of our achievements and developments in this area, and we are delighted to outline them for you in this report. We have committed to report in line with the G4 Global Reporting Initiative (GRI), the leading framework for sustainability reporting, which
demonstrates our commitment to adopt best practice.
The 2015 financial year has been successful and productive for us on the back of a continued strong operational performance by our flagship DeGrussa Copper-Gold Mine in Western Australia.
Sandfire achieved its third successive year of strong profitability following the start-up of the DeGrussa operation. We posted an annual net profit after tax of $69.0 million on strong sales revenue of $548.6 million from metal sales of 67,903 tonnes of copper and 37,194 ounces of gold.
This strong performance has given Sandfire a healthy financial foundation from which to fund our ongoing growth initiatives, including mine development, minerals exploration and the pursuit of business development opportunities. It ensures that Sandfire can continue to maximise the opportunity to create value for our stakeholders.
For example, in the year ended 30 June 2015 we paid (or have payable) royalties and tax of $43.1 million to the Government and Native Title Claimant Groups.
While financial and operational success is important, we never lose sight of the vital role that our people, including our contractors, play in driving sustainable performance. Their safety will always be our greatest priority.
We have also worked hard to support the local communities in the region surrounding the DeGrussa Mine so they receive real benefit from our activities.
Sandfire currently supports a wide variety of local community initiatives including the Meekatharra Outback Festival and local Aboriginal community development initiatives. We have also sponsored community groups including Meekatharra Youth Centre, Karalundi School, Meekatharra sporting clubs and the Meekatharra Hospital Auxiliary.
We are committed to working closely with the Aboriginal communities in the areas in which we operate. To date, Sandfire has carried out over 50 Aboriginal Heritage surveys across our tenements. These surveys are carried out in conjunction with members of the Native Title Claimant Groups, Traditional Owners, Aboriginal Representative Councils and professional anthropologists and archaeologists. Land Access Agreements have been negotiated and implemented to deliver substantial benefits to members of the Native Title Claimant Groups and surrounding communities.
Sandfire also upholds high standards of environmental responsibility.
A significant achievement for the year was the signing an agreement to construct a 10.6 megawatt solar power station at DeGrussa. The DeGrussa Solar Power Initiative is being pursued under an agreement between Sandfire and juwi Renewable
Energy, one of the world's leading providers of state- of-the-art, utility-scale renewable energy projects.
This $40 million project will be the largest integrated off-grid solar and battery storage facility in Australia, and one of the largest in the mining industry worldwide. It will help to showcase the benefits of renewables in reducing operating costs and improving environmental performance in the resource sector.
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As we reflect on our achievements over the past 12 months, we can look to the future with confidence. Sandfire is committed to delivering a strong financial performance, being an 'employer of choice' that offers a positive and safe workplace for employees and contractors, and working in a sustainable and ethical way with our communities.
The Sandfire Story
We would like to take this opportunity to sincerely thank all of the dedicated staff and contractors who have helped us to reach our goals and deliver on our commitments. Without your hard work, none of this would be possible.
Sustainability at Sandfire
DEREK LA FERLA KARL SIMICH
Chariman Managing Director
& CEO
OUR BUSINESS
2
EVANS DECLINE
JUNE 2011
Our Supply Chain
Our Contribution
1
EXPLORATION MINING
4 3
DELIVERY
Our Community
Our Operations
5
REHABILITATION
Our People
PROCESSING
SANDFIRE RESOURCES SUSTAINABILITY REPORT 2015 5
THE SANDFIRE STORY
6
The Sandfire Story
Sandfire Resources NL is a mid-tier Australian mining and exploration company based in Perth, Western Australia.
Sandfire is listed on the Australian Securities Exchange. We produce copper and gold from our flagship 100% owned DeGrussa Copper- Gold Mine, located 900km north of Perth.
The DeGrussa mine grew at a rapid pace, moving from the discovery phase through resource drill-out, feasibility, financing, development, and construction to first copper production within three years. This transition set new benchmarks for the efficient and rapid development of resources in Western Australia.
DeGrussa has a Mineral Resource inventory of 546,000 tonnes of copper and 616,000oz of gold (as at 31 December 2014). This is a high quality inventory with the average grade of this resource well above the norm for global copper producers.
The DeGrussa mine produces high quality copper-in-concentrate with significant gold credits. Production for FY16 is forecast at
65-68,000 tonnes of copper and 35-40,000 ounces of gold at a C1 cash cost of US$0.95-
1.05 per pound.
Our Community
Our Operations
Our People
Sandfire has a substantial ongoing exploration commitment within its broader 1700sqkm tenement holding surrounding DeGrussa. It also manages a portfolio of exploration joint ventures and initiatives in prospective mineral provinces in Australia and overseas.
Sustainability at Sandfire
Sandfire is aiming to leverage the strength of its DeGrussa Copper-Gold Mine to become a diversified Australian mining company with a sustainable growth future.
During the 2015 financial year, Sandfire conducted exploration activities in Australia within the Bryah Basin region of Western Australia, the Mt Isa Inlier in Queensland, the Lachlan Fold Belt of New South Wales, the Gawler Craton region of South Australia and the McArthur Basin region of the Northern Territory.
Our Contribution
Internationally, Sandfire is developing exploration and growth opportunities in Papua New Guinea (through a 38% stake in Toronto Stock Exchange (TSX)-listed WCB Resources - TSX-V: WCB) and also in Montana in the United States (through its 36% stake in TSX-listed Tintina Resources - TSX-V: TAU).
Our Supply Chain
Sandfire's total workforce, including contractors, is approximately 450 people which includes a direct workforce of 256 people.
Sandfire discloses its sustainability performance as part of the Australian Government's National Greenhouse and Energy Reporting Scheme and the National Pollution Index. This year we participated for the first time in the Carbon Disclosure Project (CDP).