OGC 2012 SustainabilitySingleLR FINAL

7/27/2019 OGC 2012 SustainabilitySingleLR FINAL

1/32OceanaGold Corporation Sustainability Report 2012 1

OceanaGold

SustainabilityReport 2012

Committed toSustainable Mining

Development


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Contents

4 Foreword

5 What Sustainability Means to Us

6 Performance Highlights

9 Environment10 Environmental Performance

10 Environmental Compliance12 Energy and Greenhouse Gas12 Water14 Waste14 Land Use

17 Community19 Community Performance20 Supporting New Zealand

Communities21 Supporting Philippines Communities22 Community Feedback22 Human Rights

25 Health & Safety + Workplace26 Health and Safety Performance26 Health and Safety Statistics28 Health and Safety and Training28 Health and Safety Initiatives29 Contribution to Health and Safety

in the Community30 Workplace30 Workplace Profile and Diversity31 Talent Management


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Foreword

Welcome to our latest update on the sustainabledevelopment activities being carried out at OceanaGoldCorporation.

To grow a strong and profitable gold mining company youhave to be good at everything. It is not enough to just begood at producing gold efficiently and generating profits

for our shareholders. We must also excel in the softerareas that we collectively call sustainability.

We must strive to achieve the highest standards of safety,protect the environment, create opportunities and improvethe wellbeing of our employees. We will continue to ensurethat the communities in which we operate are engaged inour mining projects and benefit from these operations, andsupport Governments in the development of the economyin the countries in which we operate.

OceanaGold has a proud record of sustainable developmentfrom 20 years of operating our Macraes mine in NewZealand. Our environmental programs at Macraes setthe bench mark for rehabilitation in the industry, andthe work we do with the Department of Conservationmeans that our footprint at Reefton is minimal. We aretaking these same principles and operating practices intoour new development at Didipio in the Philippines wherewe plant tens of thousands of trees each year in ourregion, help communities with agriculture projects. Wehave created a new business development entity for thecommunity, called DiCorp, which will partake in the ongoingoperations contracts at Didipio developing sustainable andtransferable work and business skills which deliver moreeconomic benefits directly to the local communities.

We are very committed to the values that underpinresponsible mining, and will continue to do so to ensurethe sustainable growth of our company in multiplecountries around the world.

Mick Wilkes, Managing Director and CEOApril 2012

In this, OceanaGolds fourth Sustainability Report, theCompanys 2011 environment, community, health andsafety and workplace performance is reviewed andassessed against targets set in the previous year. This isalso the first time that the company has produced a standalone report detailing performance.

With four years of data now available, the Companysability to track and compare sustainability performanceover the period has allowed us to track performancetrends. This information and our sustainability report itselfare both extremely valuable tools for identifying risks andopportunities as well as driving continuous improvement.

Our approach:

Action:Track data using procedures for inclusion in thisyears report

Measurement:

Compile fourth Sustainability ReportAccountability:Stakeholder and shareholder response



What Sustainability Means to Us

Enduring BenefitsToday, the mining industrys future has become inseparablefrom the global pursuit of sustainable development, a termfirst used 30 years ago when significant deterioration ofthe human environment and natural resources promptedthe United Nations General Assembly to take the

unprecedented step of establishing a specialist commissionon sustainable development.

Named after the inaugural Chairman of the Commission,Gro Harlem Brundtland, the Brundtland Commissionsmission was to unite and persuade countries around theworld to work together in their pursuit of sustainabledevelopment.

In its then, ground-breaking role, the Commissionproduced the most often quoted definition of sustainabledevelopment as development that meets the needs ofthe present without compromising the ability of futuregenerations to meet their own needs.

For the modern day mining companies, the idea of meetingthe needs of this generation without compromising theability of future generations to meet their own needs hasbecome a key concept in the drive to maintain and enhancethe industrys essential contribution to society.

For the Australian minerals industry, this means miningprojects should not only be financially profitable andtechnically feasible, but environmentally sound and sociallyresponsible.

OceanaGolds commitment to sustainable developmentis based on these principles which determine how theCompanys projects and programs are undertakenand evaluated. Its focus on innovative and effectivesustainability outcomes in the areas of environment,community, health and safety and workplace programsapplies across the business.

The Companys efforts to effectively integrate its businessobjectives with sustainability objectives is ongoing. Theseefforts will help to create a positive, lasting legacy thatensures benefits continue well beyond the life cycle of itsprojects. We believe this approach will result in enduringbenefits for our business and our stakeholders.

Key Policy and Process DevelopmentsIn 2009, the Companys first Corporate SocialResponsibility (CSR) policy was approved by the Boardof Directors. The CSR policy guides all Company decisionmaking and management. It outlines OceanaGoldssustainability philosophy and can be found on the

Companys website www.oceanagold.com.The Companys Sustainability Committee is responsiblefor implementing the CSR policy and further strengtheningOceanaGolds commitment to environmentally sound andresponsible resource development and a healthy and safework environment. The Committee is led by OceanaGoldChairman Jim Askew and includes Board members DenhamShale, Joey Leviste and Bill Myckatyn.

Importantly, the CSR policy applies to all companyemployees, contractors, business partners and the broadersupply chain, regardless of role or position within theCompany. It underpins accountability, responsibility andhigh standards of corporate governance that OceanaGoldstrives to achieve across its business units and articulatesthe Companys belief in maintaining a social license tooperate.

OceanaGolds work to complement broader globalsustainability initiatives that address economicdevelopment, poverty relief and better health outcomesis guided the aims of its CSR policy.

By working hard to build strong, lasting partnerships withlocal communities and associated organisations in 2011,the Companys focus on delivering enduring benefits andeconomic empowerment within the regions it operates has

continued to sharpen and post meaningful gains.Each year, the Company reviews its governance andpolicy framework to identify further opportunities toincorporate its sustainability objectives with its broaderbased business goals.

OceanaGold Corporation Sustainability Report 2012


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Performance Highlights

Governance and Policy Reviewed the Company governance and policy framework

to identify further opportunities to integrate sustainabilityobjectives with core business aims.

Continued to apply the Corporate and Social Responsibility(CSR) policy.

Continued to track performance against sustainabilityKey Performance Indicators (KPI) and data collectionprotocols.

Commenced a review of existing human rights policiesand practices against the requirements of internationalbenchmarks and guidance.

Implemented the Sustainable Procurement Policy inNew Zealand, resulting in 71.5% of the operation spendat Macraes and Reefton with suppliers that are basedin New Zealand.

Environment

Managed environmental impacts to keep the number ofModerate or Major environmental incidents (i.e. Levels 3to 5) to zero at all operations.

Achieved the carbon emission targets set out in theNegotiated Greenhouse Gas Agreement with the NewZealand Government.

Reviewed and revised the Environmental Policy andEnvironmental Management Plans as part of the recentlyimplemented Environmental Management System (EMS)at Macraes.

Reviewed the accessibility of monitoring data, includinginstallation of automatic monitoring equipment to improve

the efficiency of data transfer to the compliance authorityat Macraes.

Achieved a 9% reduction in surface water consumptionat Macraes. The site also reclaimed approximately 90%of the water used in its processing plant from its tailingsimpoundments and seepage systems.

Completed a comprehensive review of mine sitepost-closure strategy at Macraes.

Produced 1,000 eight month old trout and 5,533 one tothree year olds for release into surrounding lakes and riversystems at the Macraes Trout Hatchery.

Completed a further 1.1 hectares of restoration at Reefton,

bringing the total net area now restored to 11.8 hectares. Continued to evaluate restoration trials including pit wall

programs and undertook further restoration trials tomaximise the effectiveness of site rehabilitation atReefton.

Won an award in the Philippines Mines and GeosciencesBureau (MGB) Best Mining Forest Program category andwas nominated for the 2011 Presidential Minerals Industryand Environmental Awards.

Maintained OceanaGolds involvement in the MinesRehabilitation Fund Committee that administers fundsfor the benefit of Didipio and surrounds.

Rootballed and transplanted a further 1,036 trees andwildlings at the Didipio tree nursery. Over 103 hectares ofreforestation has now taken place at Didipio using 250,000

seedlings. Expanded and enhanced the environmental monitoring

program in line with increased activity and developmentat Didipio.

Community Ongoing monetary contributions distributed back into

New Zealands operational regional communities to assistwith educational, health and community developmentprograms.

Continued to hold bi-monthly meetings with MacraesCommunity Incorporated the communitys localrepresentative group.

Organised fishing days at the Macraes Trout Hatcheryfor staff and community members to enjoy.

Undertook consultation with other key stakeholdersincluding the Department of Conservation, Historic PlacesTrust, Waitaki District Council, Otago Regional Council,local Iwi and The Otago Fish and Game Council.

Provided employment to students during the vacationperiods in their relevant field of study and providedpresentations to school and community groups focusing onall aspects of mining including geology and the environmentat Macraes and Reefton.

Contributed PHP3 million (US$70,000) to the DidipioCommunity Development Association Inc. (DCDAI) toimplement a range of community development programsand projects in the Philippines.

Signed a Memorandum of Agreement with Didipio andnine surrounding communities on the allocation of SocialDevelopment and Management Plan (SDMP) funding.Approximately US$1.5 million per annum of Didipiooperating costs will be allocated to community programs ineducation, infrastructure, health, sports and socio-cultural,agriculture and livelihood, organisational development,information and communication and public safety in thePhilippines.

Established the Didipio Community DevelopmentCorporation (DiCorp) to assist local communityshareholders build the capacity to directly bid on variousmine services contracts. As at April 2012, long-termcontracts have been awarded for collection of recyclablesand waste, provision of the employee shuttle bus service,maintenance of the access road, construction of the treenursery and supply of labour services.



Health and Safety Achieved a Lost Time Injury Frequency Rate lower than

the Australian average across the Companys combinedoperations.

Achieved general improvement in injury type and frequencyacross all operations.

Expanded the Macraes emergency response team to 45members and conducted two Rookies emergency responsetraining courses for the new additions to the team.

Undertook a wide range of health and safety trainingprograms at Macraes and Reefton including emergencyresponse, advanced first aid, fire fighting, undergroundrescue and BG4 and CABBA breathing apparatus use.

Continued drug and alcohol education and policyenforcement at Macraes and Reefton.

Undertook root cause analysis training for selectsupervisors in New Zealand.

Development of a new induction package for the

Companys New Zealand operations is underway.

Completed a Job Safety Analysis across the Reeftonoperation with area audits carried out in addition to safetyobservation walks.

Continued operating the community health and safetyclinic at Didipio.

Conducted basic life support and standard first aid trainingin partnership with the Philippines National Red Crossat Didipio. The projects Central Safety Committee alsooversaw implementation of a site specific emergencymanagement plan and a range of training initiativesincluding emergency response, risk management, hazard

identification, workplace inspection and fire extinguishertraining.

Workplace Increased New Zealand full time employees from 506 in

2010, to 738 in 2011, a 46% increase due to transition fromcontract mining to owner mining at Frasers Undergroundand Reefton Open Pit mines.

Increased Philippines full time employees from 101 in2010 to 251 in 2011. An additional 615 contractors werealso employed, up from 116 the previous year.

Increased Melbourne head office full time employees from

12 to 15 in 2011. Expanded the innovative Mind4Gold program at the

Companys New Zealand operations. Mind4Gold now formsthe cornerstone of all staff development in New Zealand.

In September/October 2011 launched an InterculturalCompetence Training (ICT) program for staff andmanagement teams at the Didipio Project site in thePhilippines.

Top: Aerial view of Reefton,

New Zealand with

OceanaGolds Reefton

Goldfield in the background

Below: Emergency response

training at Didipio Project in

Luzon, northern Philippines


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Aerial view of Macraes

Goldfield and surrounding

landscape


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Environment


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Environmental Compliance

OceanaGolds environmental compliance and managementprogram applies across its mine life cycle and includesexploration, development and operation, decommissioning,closure and site rehabilitation. Environmental monitoringprograms operate at each site and allow the Company to

address key environmental factors which include: Potential seepage from tailings dams and waste rock stacks Groundwater quality Surface water quality Stream sediments Site biodiversity Aquatic biological diversity Noise Dust

In 2011, the Companys largest operation, Macraes,implemented an Environmental Management System (EMS)consistent with ISO 14001. Associated with the Macraes

EMS was a review and update of the Environmental Policy,compilation of an environmental risk register, implementationof three operational management procedures anddevelopment of a site standard for hydrocarbon storage.

Resource consents were also granted for the Macraes PhaseIII project that will allow mining to continue until 2020.

During 2011, OceanaGold reviewed induction programsto clarify environmental responsibilities and duty of careobligations at each Company site.

Environment

OceanaGold is committed to managing environmentalimpacts, an imperative step to maintaining the Companyslicense to operate.

A material issues assessment of the Companys businessunits in 2008 identified the following key areas forenvironmental reporting that are used to evaluate

OceanaGolds environmental management performanceeach year:

Compliance Energy Use and Greenhouse Gas Water Waste Land Use

The Environmental Management System (EMS) used byOceanaGolds business units are based on accepted ISO14001 standards. The Company monitors its performancewith environmental management data protocols. Keyperformance indicators are assessed to identify areas

in need of improvement and longer term trends, enablinga more pro-active approach to possible risks.

The Companys environmental policies and programs areregularly reviewed. For the latest version of OceanaGoldsenvironmental policy go to www.oceanagold.com.

Environmental Performance

OceanaGolds environmental performance against the goals set in 2010 is detailed below:

Business Unit 2011 Target Status

Macraes Achieve or better the carbon emission targets set out in the NegotiatedGreenhouse Gas Agreement with the New Zealand Government.

3 A

Construct a multi-use track from Macraes Village to provide linkages to the keyattractions near the village and enhance the amenity value of the Macraes area.

3 PA

Review and revise the Environmental Policy and Environmental Management Plansas part of the recently implemented Environmental Management System (EMS)to ensure continual environmental improvement.

3 A

Review the accessibility of monitoring data, including installation of automatic

monitoring equipment to improve the efficiency of data transfer to the complianceauthority.

3 A

Manage environmental impacts to maintain the number of Moderate or Majorenvironmental incidents (i.e. Levels 3 to 5) at zero.

3 A

Reefton Achieve zero environmental non compliance incidents. X NA

Complete four hectares of restoration in line with available areas. 3 PA

Continue to evaluate restoration trials including pit wall restoration trials andundertake further restoration trials to maximise the effectiveness of site rehabilitation.

3 A

Philippines Maintain established environmental measures. 3 A

Expand tree planting program outside the Didipio Project footprint. 3 A

Stabilise and/or rehabilitate disturbed areas as soon as they become available. 3 A

Expand and enhance the environmental monitoring program in line with expectedincreased activity and development on site.

3 A

(A) Achieved (PA) Partially Achieved (NA) Not Achieved



Case Study 01:Supporting Local Suppliers

OceanaGolds sustainable procurement policy wasestablished in 2007 to promote robust economic growthand development within the communities surroundingits operations. The policy advocates a clear preference

for pursuing a local community supply base whereverpossible and since its establishment has achieved recordlocal supplier support. In New Zealand, over 70% of alloperational expenditure is allocated to suppliers based inthe country.

Similarly, in 2009 a transportation program was developedwith local supplier East Coast Passenger Services toafford sustainable, fuel efficient transport for OceanaGoldstaff living in the Waikouaiti, Palmerston, Oamaru,Dunedin, and Warrington/Waitati areas.

Today, approximately 225 staff and contractors aretransported by East Coast Passenger Service buses

to and from work daily.

In 2010, the success of this program saw an identicalinitiative introduced on the West Coast to support staffand contractors at OceanaGolds Reefton operation.As with services to Macraes, the transport servicesdeveloped for Reefton coordinate around a standardisedshift roster schedule to improve productivity and mineproduction. Staff, contractors and local community acrossthe 105 kilometres between Greymouth and Reeftonbenefit from smooth shift changeover, reduced driverfatigue, reduced road congestion and fuel costs.

Environmental Non Compliance

BusinessUnit

2011 2010 2009 2011 EventClassification

Macraes 2 2 3 Minor

Reefton 4 1 3 Minor

Didipio 0 0 0 N/A

Macraes operations recorded two non compliance eventsin 2011 which were classified as minor and did not exceedthe moderate, significant or major categories (levels3 to 5). These incidents related to depositional dust andwater samples. The depositional dust incident occurredon three occasions. A review of the results and dustcontrol practices noted that the site is located up wind anddistant from current mine operations and is likely to beinfluenced by farming activities. Although the incident hasbeen resolved, the results will be reviewed further in theCompanys 2011 Dust Report.

Reefton operations recorded four minor non complianceincidents in 2011, compared with one non compliance eventin 2010.

Two incidents related to the discharge of tailings waterfrom the base of a saddle embankment to a local surfacewater tributary. Additional seepage also occurred throughhistoric coal workings into the nearby tributary. Bothincidents were resolved via the installation of a pumpingsystem to return seepage to the tailings impound anda program of works to seal, backfill and grout voidsthat were located in the western ridge of the tailingsimpoundment. There were no detectable or measurable

off site impacts stemming from these incidents.

The third incident involved extreme rainfall resulting in alandslide which temporarily exceeded surface water totalsuspended solids, but required no enforcement action.The fourth incident was a minor breech of the acceptedantimony standard from a compliance figure of 1.6 gramsper cubic metre to 1.8 grams and was resolved by dailymonitoring of antimony to allow the water treatment plantthroughput to be altered to reduce the concentration ofantimony in the discharge water.

The Didipio Project did not record any environmentalnon compliance incidents in 2011.

OceanaGold employee bus,

New Zealand


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Case Study 02:Better Bananas

In March 2011, OceanaGold sponsored a pilot programaiming to provide the community with high yield diseaseresistant banana crops as part of its commitment tosustainable agriculture in the surrounding regional Didipioarea.

Luzon was previously a self sufficient banana grower

until the Banana Bushy Top Virus disease damaged asignificant amount of the lakatan banana crop, with thedisease still prevalent in many parts of the northernPhilippines.

As part of the program, local farmers and members of theDidipio Community Development Association Inc (DCDAI)started planting 4,000 tissue cultured lakatan bananaplantlets provided by OceanaGold and developed by NuevaVizcaya State University (NVSU). The farmers were alsoprovided with around 4,000kg of rich compost.

OceanaGold also sponsored a training program to providemembers of the DCDAI with the skills required to grow and

manage production of the tissue cultured plantlets and athree day workshop was run by NVSU to complement thistraining.

Economically, bananas remain one of the most importantagricultural fruit crops in the Philippines and with yearround availability, the aim of the pilot program is for localand small scale farmers to be able to generate a steadysource of income.

Energy and Greenhouse Gas

OceanaGolds energy and greenhouse objectives are guidedby the Companys Environmental Policy. OceanaGoldsprocurement policy also aims to lower transport (diesel)and stationary fuel (LPG) consumption, which togethercomprise OceanaGolds largest source of direct greenhouseemissions. (Refer to Case Study 01: Supporting LocalSuppliers).

OceanaGold is also a partner to a Negotiated GreenhouseGas Agreement with the New Zealand Government tominimise its greenhouse emissions. The Company met itsNegotiated Greenhouse Gas Agreement reporting obligationsfor the 2011 period and submitted its Milestone Report inMarch 2011 to the New Zealand Government. OceanaGoldsnext Milestone Report was completed in March 2012.

In 2011, greenhouse gas emissions increased at both theMacraes and Reefton operations. This was due to highervolumes of diesel being used in the extraction process. AtMacraes, the ore is located at increasingly greater depthsand thus requires longer haul distances. Greenhousegas emissions generated by the Philippines operationsincreased slightly as construction activity ramped up.

Water

OceanaGolds water quality and use objectives are guidedby the Companys Environmental Policy. Water quality andwater use data is managed through the Companys EMSand data management protocols.

Macraes is OceanaGolds primary gold operation withsubstantial milling operations and dust suppressionrequirements. Macraes achieved a 9% reduction in surfacewater consumption from 2,125 ML in 2010 to 1,930 MLin 2011. The site also reclaims approximately 90% of

the water used in its processing plant from its tailingsimpoundments and seepage systems.

Cyanide is destroyed by oxidation using an INCO process inthe Macraes plant before pumping to the tailings dam. Dailysamples including return water are analysed to ensure thatcyanide readings are below INCO destruction detection limits.

The Reefton operation consumed 3,516 ML of surfacewater for processing in 2011, compared with 807 ML in2010. In 2011 more water was discharged from site basedon an updated water treatment plant capacity required toaccommodate a larger operational footprint. Data recordingpractices have also improved at the site. Reeftons 2011surface water use includes a mixture of fresh surfacewater from catchment, returned water from tailings, andfeed water for the water treatment plant. Of Reeftonssurface water use, 21.6 ML was reclaimed from treatedwater in the sites discharge lagoon for use in dustsuppression. An estimated 15 ML of potable river waterwas also utilised at Reefton. This river water was accessedvia the Inangahua River gravels.

Didipio receives 3,000 4,000 mm of rainfall per year.The Company plans to recycle water for the process plantfrom the operations tailings pond when the plant iscommissioned in late 2012. Make-up water for the processing

plant will be taken from boreholes around the open pit area.This extraction is located away from residential areas andtherefore not inferred to affect residents water sources.In 2011, the Philippines groundwater consumption rosewith recommencement of construction of the Didipio Project.

Banana plantation near

Didipio Project, Philippines



Background: Snow tussock

grassland planted near

Macraes Goldfield to restore

original landscape

20000

M

acraes

TonnesCO2e

R

eefton

Philippines

M

acraes

R

eefton

Philippines

M

acraes

R

eefton

Philippines

40000

60000

80000

100000

120000

140000

2009 2010 2011

0

GHG Scope 2

GHG Scope 1

0

500

Reefton Water Use by Source (ML)

Philippines Water Use by Source (ML)

2008 2009 2010 2011

2008 2009 2010 2011

2008 2009 2010 2011

1000

1500

2000

2500

0

1

0

2

3

4

5

6

7

8

9

500

1000

1500

2000

2500

3000

3500

4000

Greenhouse Gas (GHG) Emissions Macraes Water Use by Source (ML)

Surface Water

Surface Water

Surface Water

Potable Water

Groundwater


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Waste

OceanaGolds waste objectives are guided by the CompanysEnvironmental Policy. Waste data is managed through theCompanys EMS and data management protocols.

OceanaGolds New Zealand operations have establisheda comprehensive recycling program that aims to reduce thequantity of waste sent to landfill each year. The programincludes scrap metal, drums, cardboard and paper and has

delivered consistent waste minimisation outcomes each year.

In 2011, the Macraes operations successfully reduced thevolume of waste sent to landfill. At Reefton solid wastemanagement was previously managed and controlled bya mining contractor. Following the transition from contractmining to owner mining during 2011, managing and trackingthe waste generated at the site is now being managed inhouse and as a result shows an increase in landfill volumes.In New Zealand, a review of the Companys WasteManagement Plan is scheduled to occur during 2012.

The Didipio Project continued its waste segregation andrecycling program. Waste to landfill in 2011 increased

marginally at the Philippines operations due to therecommencement of construction during the year.

Land Use

OceanaGolds New Zealand and Philippines operationsoffer a rich and varied natural environment. Land use,heritage, biodiversity and rehabilitation are all guided bythe Companys Environment Policy. These areas are alsomanaged through the Companys EMS, data managementprotocols and closure plans.

Research and implementation of specific programs

are designed to enhance and support the biodiversityand heritage which is unique to each site. The Companyis committed to delivering enduring benefits to localcommunities and the environment beyond the life cycleof the project. The closure planning processes go beyondthe rehabilitation of disturbed land, to include ways ofproviding ongoing employment and other long-term socialand community benefits within the surrounding communities.

At Macraes, the comprehensive review of mine siterehabilitation undertaken in 2011 identified successfulrehabilitation and restoration achieved to date and a planwas formulated for rehabilitation strategies and initiativesgoing forward.

These initiatives include:

An archaeological survey of the Macraes Townshipto be completed in 2012;

An Ecology Management Plan to be prepared in 2012to cover the protection and enhancement of ecologicalareas set aside as part of the Macraes Phase IIIdevelopment;

The establishment of three ecological zones coveringtussock grassland, scrubland and indigenous vegetationformally protected by covenants. The combined area ofthe three zones will be a minimum of 155 hectares;

Update of the existing Heritage Management Plan to coverthe Macraes Phase III development.

In partnership with Fish & Game New Zealand, OceanaGoldsMacraes Trout Hatchery produced 1,000 eight monthold trout and 5,533 one to three year olds for release intosurrounding lakes and river systems during 2011.

0

50

100

Macraes

Tonnes

Reefto n Philipp ines

150

200

250

300

Waste to Landfill

2010 2011



2012 Environmental Targets

Macraes Coordinate the transition to the Macraes Phase III (MPIII)

consents to ensure the timely submission and approvalof new management plans and operational manuals.

Rationalise the environmental monitoring programto ensure all MPIII consented compliance monitoringis achieved.

Complete all scheduled rehabilitation as proposed inthe 2012 Project Overview and Work and RehabilitationProgram.

Manage environmental impacts to maintain the numberof moderate or Major environmental incidents(i.e. Levels 3 to 5) at zero.

Reefton Implement an EMS, to ensure continual environmental

improvement.

Install continuous down-stream surface water qualityequipment.

Continue restoration trials and undertake investigation

into rehabilitation material stockpiling issues.

Complete five hectares of restoration in line withavailable areas.

Manage environmental impacts with the aim of havingzero environmental impacts that have a Moderateor Major impact.

Philippines Complete 75% of the requirements to obtain

ISO 14001 Certification.

Reforest 100 hectares under OceanaGolds commitmentto the Philippine National Greening Program.

Achieve 100% compliance with all the environmentalprovisions within Didipios environmental permits.

Construct settling pond in Dinauyan River and dry haulroad crossing to Run of Mine pad.

Achieve mean daily turbidity of 350 NTU (nephelometricturbity units) in Q4 2012 at the Dupit water qualitymeasurement station on the Didipio River.

Left: Low impact exploration

program at Reefton, New Zealand

Reefton lodged a NZ$12.3 million (US$9.7 million) jointenvironmental bond covering 178.8 hectares with theDepartment of Conservation, the Buller District Counciland the West Coast Regional Council. A further 1.1hectares of rehabilitation planting was also completedat the Reefton site, and net of stockpile creation, 11.8hectares of the site have now been restored. Reeftonhas reviewed and submitted a restoration plan to theDepartment of Conservation for approval.

At the Didipio Project, OceanaGold maintained itsinvolvement in the Mines Rehabilitation Fund Committee(MRF) which consists of the following funds:

Environmental Trust Fund - US$2,414 Monitoring Trust Fund - US$3,536 Rehabilitation Cash Fund - US$130,925

The MRF Committee meets quarterly to address keycomponents of the Didipio Project and to continueinteraction with local communities on eventual closureand restoration plans. Redesign of a mine closure planbegan in 2011 due to change in project design which,when complete, will be used by the Philippines Mines andGeosciences Bureau to determine the size of the MRF goingforward.

Other biodiversity and rehabilitation programs at Didipiorelated to its longstanding tree nursery and reforestationprograms. In 2011, 1,036 trees and wildlings weretransplanted. During tree cutting, the number of vulnerablespecies were counted and 10 times the number ofseedlings were planted for each vulnerable plant removed.OceanaGold directly funded the planting of 3,871 seedlingsand donated an additional 9,591 seedlings to the program.To date, over 103 hectares of reforestation has taken place

at Didipio using 250,000 seedlings.


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Didipio tree nursery,

northern Luzon, Philippines


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Community


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Case Study 03:Economic Empowerment In The Philippines

To coincide with OceanaGolds construction and planned2012 commissioning of the Didipio Project, the Company,in 2011 embarked on a community initiative designed todeliver significant economic growth for local communities.

Modelled on the success of similar community corporationsin Papua New Guinea and northern Canada, theDidipio Community Development Corporation (DiCorp)was established by OceanaGold. The DiCorp shareholdersare all long term residents of Didipio.

DiCorp provides its members with the assistance to buildthe capacity required to directly bid on various mineservices contracts. As at April 2012, long-term contractshave been awarded for the collection of recyclables andwaste, provision of the employee shuttle bus services,maintenance of the access road, construction of the treenursery and supply of labour services. The local DiCorp

cooperative is expected to bid on additional servicescontracts in the future, with the potential value of contractsover Didipios mine life expected to be in the tens ofmillions of dollars.

OceanaGold has set itself the goal of awarding at leastthree long-term service contracts to DiCorp members overthe next twelve months valued at US$1 million per year inaggregate.

Community

OceanaGold views the commitment of Company resourcesand effort to the development and nurture of localcommunity partnerships at its operations as one of its mostimportant investments.

While corporate donations are a primary component of theCompanys community contribution program, OceanaGolds

involvement in programs that will provide ongoingeconomic growth and development in New Zealand and thePhilippines is comprehensive and expanding.

In New Zealand, the Companys involvement withsponsorship and funding within the regions operationalcommunities continues to assist with community,educational activities and health funding awareness.

In the Philippines, a large and diverse number ofcommunity development programs that have been initiatedor supported by OceanaGold include school scholarshipsand equipment provision, health and medical programs,infrastructure construction and agricultural assistance.

As OceanaGold continues to grow in the years ahead, itscapacity to invest in the social and economic health of itscommunities, beyond the lifespan of its projects, will growin equal measure.

Above: Didipio elementary school,

sponsored by OceanaGold

Right: Didipio community

agricultural program



Community Performance


Macraes Continue to hold bi-monthly meetings with Macraes Community Incorporated the communitys local representative group and continue to consult with local Iwi.

3 A

Continue to organise fishing days at Macraes which staff and community are invited

to attend.

3 A

Undertake consultation with other key stakeholders including the Department ofConservation, Historic Places Trust, Waitaki District Council, Otago Regional Counciland The Otago Fish and Game Council.

3 A

Consider requests to subsidise school groups from all regions of New Zealand oncommercial tours on a per head basis to encourage visits to the Macraes mine.

3 A

Provide a number of places for university students to access experience in theirrelevant fields of study through the employment of students during the vacationperiods.

3 A

Reefton Continue to provide presentations when requested to school and community groupsfocusing on all aspects of mining including geology and the environment.

3 A

Remain actively involved with community groups. 3 A

Organise an open day at Reefton Globe Progress mine site for local communitymembers and visitors.

3 A

Aim for zero complaints in 2011. Where this is not achieved, ensure complaints areresolved in a timely fashion.

3 A

Consider all requests to subsidise school groups to encourage visits to the mine. 3 A

Continue funding, and aim to increase overall level of funding for community sports,activity and other groups within Reefton and the Inangahua district plus some widerarea initiatives.

3 A

Philippines Strengthen engagement with upstream and downstream communities. 3 A

Meet funding commitments to the DCDAI managed community developmentprograms and projects.

3 A

Continue to support community initiatives on infrastructure improvements, health andsports development through partner institutions and community based organisations.

3 A

Continue to sponsor education programs in partnerships with local schools anduniversities.

3 A



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Supporting New Zealand Communities

In New Zealand, the community investment initiativesundertaken by OceanaGold help form the foundation onwhich its operations in Macraes and Reefton are based.OceanaGolds Corporate Social Responsibility (CSR)policy guides its community investment and engagementprograms.

The community data management protocols introduced

in 2008 have enabled OceanaGold to track the successof its engagement with local communities and to moreeffectively target opportunities to better deliver timelyand useful community programs.

OceanaGold provides direct monetary support to NewZealand communities. Additionally, Company staff providea significant degree of in kind support for a range ofcommunity programs.

In 2011, approximately NZ$450,000 (US$360,000) wasdistributed back into regional communities, reflecting theCompanys commitment to assist sustainable projects andprograms within New Zealand.

In New Zealand, the Dunedin head office assisted withbroader regional funding opportunities, such as Otagoregional basketball youth development via sponsorship ofthe OceanaGold Nuggets in the 2011 National BasketballLeague, Otago Highlanders Rugby Franchise, the OtagoMedical Research Foundation and the AustralasianInstitute of Mining and Metallurgy (AusIMM) New ZealandBranch Annual Conference sponsorship.

The Macraes Gold Tours continued to provide aninformative outing for overseas tourists and local visitorswanting to see an active mine up close, with the add-on of a tour of the Macraes Trout Hatchery and access

to walking tracks throughout the Heritage and Art Parklocated opposite the Macraes township.

The Macraes and Reefton operations govern their owncommunity spend via monthly funding/sponsorshipcommittee meetings. Requests for funding and/orsponsorship are defined by three categories (community,education and health), with education being the moredominant of requests received.

Requests that received a higher monetary portion and willbe of greater assistance to the wider communities include:

Otago Medical Research Foundation:Provides Otago-based researchers with the opportunityto conduct research into a wide variety of medical andhealth-related subjects. OceanaGold sponsored WilliamParkyn who furthered research into Skin problems in thelower legs of morbidly obese patients and the possible role

of bariatric surgery. William was one of three joint winnersto be awarded the PK Renshaw prize whose work wasdeemed to have been most meritorious.

Waihemo Wastebusters:A non-profit incorporated society that provides arecycling service for approximately 80% of householdsin the Palmerston and surrounding local catchment areas,including Macraes Flat. In 2011 OceanaGold Macraesassisted with the necessary financial support to enablethe centre to continue encouraging its communities torecycle and reduce personal and community waste throughthe waste minimisation and resource recovery servicesthey provide.

Otago Rescue Helicopter Trust:Provides a permanent standby 24/7 service for theemergency needs of the entire population of the lowerSouth Island: spread over an area of 66,500 squarekilometres, it is the largest geographical area in thecountry. The terrain is as varied as the population, fromrolling remote farmland through to high snow coveredmountains. The Trust flew 19 missions within the EastOtago region in 2011, and OceanaGolds funding purchasedportable ultra sound units to assist with potentially lifethreatening internal bleeding or collapsed lungs fromtrauma in a pre-hospital situation amongst other items.

Regional New Zealand Volunteer Fire Services:Play a major role in providing emergency response withintheir communities. Most of these communities dependon volunteers for their every day fire protection. Men andwomen from many walks of life are volunteer firefighters,including OceanaGold staff from both the Macraes andReefton operations. Ongoing monetary donations assistedfour local branches situated close to the Macraes andReefton operations: Palmerston, Waikouaiti, Ikamatuaand Reefton Volunteer Fire Service Brigades.



Supporting Philippines Communities

OceanaGolds involvement in surrounding communitiesbegins at the early exploration and development stagesof a project and is guided by its Corporate SocialResponsibility (CSR) policy.

As part of its Financial or Technical Assistance Agreement(FTAA) at the Didipio Project in the Philippines, OceanaGoldhas developed a Social Development and Management

Plan (SDMP) which commits 1.5% of the Didipio Projectoperating cost to funding initiatives under the SDMP.The SDMP benefits are then shared among the Didipiocommunity in addition to nine neighbouring communities.

The SDMPs objective is clear and straightforward provide sustained improvement in the living standards ofthe host and neighbouring communities by helping themto define, fund and implement the community developmentprogram. A Memorandum of Agreement between Didipio,the nine surrounding communities and the Company on howto allocate the SDMP funding was signed in 2011.(Refer to Case Study 04: Building Stronger Communities).

In 2011, 157 Didipio Valley students were awarded collegescholarships, 41 of which graduated with universitydegrees. OceanaGold has also continued to provide fundingfor teacher salaries that have benefited over 600 schoolchildren in surrounding communities. In 2011, internetconnections were installed at the Municipal Hall in Kasibuand in the Barangay Hall in Didipio to facilitate bettercommunication with government leaders and agencies.

In the area of health, 30 medical missions providing freemedical, dental, optical consultation and the provision ofmedicine have been undertaken throughout the region andsurrounding areas since the establishment of the program

in 2007. These missions have directly benefited more than8,500 people to date, while OceanaGolds partnership withthe Global Fund Movement Against Malaria has achievedover 95% reduction in the incidence of malaria and denguefever in the local region.

In 2011, OceanaGold also released PHP3 million(US$70,000) to the Didipio Community DevelopmentAssociation Inc (DCDAI), in concert with the localBarangay Council to implement a range of communitydevelopment programs throughout the region.

A new and important part of OceanaGolds sustainabilitystrategy in the Philippines is the assistance provided to

the Didipio community in building capacity to directly bidon various mine services contracts. In 2011, the DidipioCommunity Development Corporation (DiCorp), whoseshareholders are the long term residents of Didipio wasformed. (Refer to Case Study 03: Economic EmpowermentIn The Philippines).

Case Study 04:Building Stronger Communities

In 2011, a Memorandum of Agreement (MOA) was signedbetween OceanaGold, Didipio and the nine surroundingcommunities on how to allocate the Social Developmentand Management Plan (SDMP) funding that comprises1.5% of OceanaGolds Didipio Project annual operatingcosts each year.

This is a significant financial contribution of approximatelyUS$1.5 million and will be used each year to undertakeprojects in health, education, infrastructure, livelihood,environment, sport and culture and public safety for thebenefit of local communities.

The MOA will see the host community, Didipio, receive45% of SDMP funds to be used for community programsand first preference in employment. Neighbouringcommunities, ie, those upstream and downstream alongOceanaGolds access roads will also receive a combined45% of SDMP funds, while each Barangay Council willreceive an additional PHP2 million (US$46,000) per year

for social development projects and second preference inemployment after Didipio. This initiative will triple currentlocal Council income from the Philippines Government.

While the SDMP remains the cornerstone of OceanaGoldscommunity contribution and involvement in the Philippines,value-adding initiatives will only continue to enhanceand broaden its effectiveness at building strong,multi-dimensional communities well into the future.

Below: OceanaGold Nuggets

sponsored sports team,

Didipio, Philippines


22/3222

Human Rights

OceanaGold is committed to respecting human rightsin all its areas of operation. To demonstrate how thiscommitment translates in practice some of the currentinitiatives are described below.

Treatment of Indigenous PeopleIn the Philippines in 1997, Republic Act No. 8371 orThe Indigenous Peoples Rights Act of 1997 (IPRA)

was enacted to recognise and promote all the rights ofindigenous cultural communities (ICCs) and indigenouspeoples (IPs) as enshrined in the Philippine Constitution.Generally, the IPRA aims to protect the rights of theICCs and IPs to their ancestral domains and in theprocess recognise, respect, protect, and preserve theircultures, traditions, and institutions. These rights includethe affirmation of the right to stay, the right in case ofdisplacement, the right to regulate the entry of migrants,and the right to ownership and redemption. The lawrequires the free and prior informed consent (FPIC) ofICCs and IPs prior to the opening of their ancestral landto mining operations and the grant of any royalty payment

from mining operations. OceanaGold is committed toupholding the IPRA as it looks to develop future operationsin the Philippines.

The Macraes and Reefton Gold Projects are on land overwhich the Iwi (Maori people) of the Ngai Tahu tribe havean interest. The sub-tribe, Kati Huirapa ki Puketeraki ismana whenua (people of the land) for Macraes and the TeRunanga o Ngati for Reefton. Both have specific interestsin relation to OceanaGolds operations and ongoing liaisonand consultation is maintained with both groups bythe Company from the initial consenting stage throughoperations and any associated expansion.

To ensure any Iwi concerns are addressed in thisprocess, OceanaGold has commissioned Cultural ImpactAssessments (CIA) for both projects. These CIAs areprepared by the Iwi and deal with how the Companysoperations may have an impact on Iwi values such as Wahitapu (places of specific importance such as a cemetery orplace of battle) Mahinga kai (traditional area to gather foodand resources) Wahi taonga (a treasured place) and Taonga(a treasure).

To formalise its commitment to consultation and workingcollaboratively, OceanaGold has a Memorandum ofUnderstanding (MOU) in place with Kati Huirapa and

is in the process of completing a MOU with Ngati Waewae.Child LabourIn the Philippines, it is the declared policy of the Stateto provide special protection to children from conditionsprejudicial to their development, including child labour.Under OceanaGolds Human Resource policy in thePhilippines, the Company specifically monitors andenforces the minimum age of employment within thegroup. Consistent with Philippines legislation, no individualbelow 18 years of age shall be employed by the Companyunless they are an apprentice as defined under the LabourCode. This policy extends to all contractors and consultantsemployed by OceanaGold which is clearly outlined in the

services contract which is strictly monitored and enforced.

Community Feedback

Formal and informal mechanisms are provided at allOceanaGold operations for community consultation andcomment regarding its activities in New Zealand and thePhilippines, guided by the Companys Corporate SocialResponsibility (CSR) policy.

Stakeholder feedback is regarded by OceanaGoldas essential to the effectiveness of its community

development programs which govern its social licenseto operate.

Any community member and stakeholder group is able toexpress their view and/or concern in a timely and effectiveway through use of the Companys feedback and grievanceprocedures. A formal grievance management procedureto address project related concerns in the Philippines hasbeen drafted and will be finalised and implemented in thecoming year.

The Company tracks community feedback and theinformation is a key determinant in the selection ofappropriate future stakeholder engagement activities.

BusinessUnit

Number ofComplaints

Number of complaintsremaining unresolved atthe end of the year (2011)

Macraes 0 0

Reefton 0 0

Philippines 57 39

Macraes mine management meets regularly withMacraes Community Incorporated, the local communitysrepresentative group.

Reefton recorded no complaints in 2011, an improvement

on 2010s one registered complaint. A successful site openday was held at Reefton to give local community membersa better understanding of all aspects of Reeftonsoperation. The Reefton General Manager is actively involvedin various local community committees to ensure a goodunderstanding of local community issues and requirements.

With the recommencement of construction at the DidipioProject in 2011, complaints in the Philippines increasedcommensurate with the increased activity at the projectsite. The majority of the complaints related to commercialdiscussions and negotiations associated with land purchasesfor the Didipio Project. Resolution of the outstandingcomplaints is a priority for the Company with many ofthese having been resolved subsequent to year end. As inthe past, the Company continues to work with the localgovernment unit (Barangay Council) in addition to theindividuals themselves in this regard.



Human Rights Due DiligenceOceanaGold is currently considering the implementationof a human rights due diligence approach in the Philippines.This will include revising policy, accountability, training,monitoring and remedy mechanisms. Some of this workis already underway and is outlined below:

Training on Human RightsTo ensure OceanaGolds commitment to human rights is

understood and lived through the Company, OceanaGoldis currently reviewing opportunities to train employees,contractors and business partners in this area. Two specificprojects to date have included:

1. On November 17, 2011, OceanaGold and its securitycontractor in the Philippines invited the Commission onHuman Rights (Region 2) to hold a human rights seminarentitled Capacitating Security Personnel and BarangayOfficials on Human Rights and Pertinent Laws for thesecurity personnel assigned at the Didipio Project siteand Barangay Didipio officials. The seminar was attendedby OceanaGold employees, security personnel and theBarangay Council.

2. In September/October 2011 OceanaGold launched anIntercultural Competence Training (ICT) program for itsstaff and management teams at the Didipio Project site.OceanaGold also intends to make the training availablefor contractors at site.

Monitoring of Human RightsOceanaGold continues to monitor human rights impactsof the Didipio Project through consultation with localcommunities undertaken by the Commission on HumanRights of the Philippines Regional Office. Progress has beenmade in this area as the Commission on Human Rightsrecently commended the Companys Philippines operations

for the inclusion of a more human rights responsive policyand approach towards its programs, plans and activities.

2012 Community Targets

Macraes Coordinate an interactive Archaeological Open Day

on site at Macraes (Robinson Farm Complex) for theMacraes Community, local schools and general public inconjunction with the New Zealand Historic Places Trust.

Continue to fund/sponsor community, education andhealth initiatives in the Macraes and wider East Otago

communities. Complete remedial works to the historic Stanleys Hotel

and Gay Tan Cottage in consultation with the New ZealandHistoric Places Trust and Macraes Community.

Complete an archaeological survey of the MacraesTownship in consultation with the Macraes CommunityIncorporated members.

Support and promote a local volunteer recycling business(Waihemo Wastebusters) by expanding recycling serviceson site, and within the local Macraes Community.

Reefton Continue to provide presentations when requested to

school and community groups focusing on all aspects ofmining including geology and the environment.

Remain actively involved with community groups.

Organise an open day at Reefton Globe Progress mine sitefor local community members and visitors.

Aim for zero complaints in 2011. Where this is notachieved, ensure complaints are resolved in a timelyfashion.

Consider all requests to subsidise school groups toencourage visits to the mine.

Continue funding, and aim to increase overall level offunding for community sports, activity and other groups

within Reefton and the Inangahua district plus somewider area initiatives.

Philippines Sustain partnerships with host and adjacent communities.

Individual MOAs signed by the 10 partner Barangays.

Meet funding commitments to host and adjacentcommunities through the advance payment of 30% of theSDMP fund allocation.

Complete five year community development plan coveringthe host and 9 adjacent Barangays.

Implement a community grievance management program.

Support sustainable enterprise development in thecommunity by awarding at least three long-term servicecontracts to a local community owned corporation valuedat US$1 million per year in aggregate.

Spend at least US$500,000 on capital infrastructureconstruction and improvements in the Didipio communityincluding roads, canals, schools and other communityinfrastructure.

Increase purchasing from Nueva Vizcaya basedbusinesses and contractors by 100%.


24/32

Macraes Goldfield

rehabilitation of waste

rock stacks


25/3225

Health & Safety+ Workplace


26/3226

Health and Safety

Ensuring the health and safety of all OceanaGoldemployees, contractors and the communities in which itoperates is of paramount importance to the Company.

Substantial time and resource is allocated each year toimproving the Companys health and safety performancewith a key objective of an incident and accident free

workplace for all participants.

In recent years, targeted training and education hasbeen used as an effective means of achieving this goal.The desire to instill in its employees and contractors abelief that all incidents and injuries are avoidable is at theforefront of its health and safety policies and programs.

Experience has shown that to achieve these objectives,management commitment must be matched by anequal commitment from the Companys employees andcontractors if its health and safety performance is tocontinue to improve. To this end, OceanaGold has developeda health and safety framework containing annualimprovement targets marked as Specific, Measurable,Achievable, Realistic and Time framed, or SMART.

Key performance indicators that refer back to the SMARTtargets are then used to help track its health and safetyperformance over time for further improvement, trainingand development. These include:

Lost Time Injury Frequency Rate (LTIFR) Injury Type Worker Compensation Claims

Health and Safety Statistics

OceanaGolds Lost Time Injury Frequency Rate (LTIFR)dropped from 3.45 (per million man hours) in 2010, to 1.94in 2011. This is considerably lower than the Australianmining industry average of 4 and a further improvementon the previous year.

While Macraes and Philippines reported minor increases inLTIFR in 2011, Reefton again reported a significant drop from11.87 in 2010 to 3.31. This figure includes 1 lost time injuryfor exploration. Excluding this, the Reefton mining operationsLTIFR was 1.84 in 2011. Together with the Companyscombined LTIFR decrease demonstrates the effectivenessof OceanaGolds focus on health and safety awareness andtraining for all staff and contractors in recent years.

A comparison of the Companys LTIFR (per million manhours) for the previous five years benchmarked to theAustralian industry average is detailed in the graph below.

Health and Safety Performance


New Zealand Achieve LTI rate lower than the Australian average 3 A

Reduce injury rate on the previous year. X NA

Monitor and review implementation of the PASS program to ensure maximumeffectiveness.

3 A

Utilise the local police serious crash unit to deliver safety messages and educationto the Company workforce. 3 A

Continue drug and alcohol education and policy enforcement. 3 A

Continue fire extinguisher, first aid and manual handling training for the workforce. 3 A

Ensure safety task observations are conducted. 3 A

Undertake root cause analysis training for select supervisors. 3 A

Develop a new induction package for New Zealand operations. 3 A

Philippines Continue operating the health and safety clinic at site. 3 A

Conduct continuous training of the emergency response team. 3 A

Review membership to the central safety committee. 3 A

Review safety management system in preparation for the increased level of activitieson the project.

3 A


LTIFR (per million man hours)

0

Macraes Reefton Philippines OceanaGold NZ combined

5

10

15

20

25

30

Australian Industry Average (sourced from the Minerals Council of Australia 2008-09)

2007

2009

2008

2010

2011



Case Study 05:The Root Cause

The Incident Cause Analysis Method (ICAM) health andsafety training program employed by OceanaGold at itsNew Zealand operations is a system originally developed byBHP as a tool to enable an investigation team to determine

the root cause of an incident and whether more than asingle root cause contributed.

ICAM also takes into account organisational factors, tasksand environmental conditions, individual and team actionsand defenses as part of a health and safety system whichmust all be investigated to determine why an event hashappened or may occur.

In 2010, OceanaGold researched the ICAM systemand decided to trial it on site in New Zealand by initiallytraining a selection of senior staff and specialised safetystaff in its use. This training and subsequent assessmentof the programs impact demonstrated its success and

effectiveness as a whole of the Companys health andsafety system.

Today, the ICAM system is used throughout OceanaGoldsNew Zealand operations and is in the process of beingimplemented at Didipio in the Philippines. It has also beenwidely adopted throughout the global mining industry.

All the Companys senior staff, supervisors, actingsupervisors and safety representatives have, or will betrained in ICAM which will provide a thorough knowledgebase and understanding within the investigation teamsas they are formed.

At the Didipio Project, Typhoon Pedring passed directlyover the site in late September with winds in excess of175 km/hour. Regrettably, one security contractor wasfatally injured during Typhoon Pedring and immediate andongoing support and counselling was provided to the familyand employees in relation to the incident.

The overall ongoing health and safety improvementsin 2011 are due in part to OceanaGolds contractoreducational awareness initiatives applicable to theprocessing and mining components of each operation.These initiatives include a series of refresher inductionsto ensure new and current contractors are fully informedof the Companys health and safety standards.

When added to annual review of all Company health andsafety policies and its comprehensive training programs,these awareness initiatives also appear to be positivelyinfluencing the Companys health and safety performance.

OceanaGolds injury type results from 2008 to 2011

for each operation are detailed in the graphs below.

FAI - First Aid InjuryMTI - Medical Treatment InjuryLTI - Lost Time InjuryFA - Fatality

Below: Emergency response training at

Macraes operation, New Zealand

Macraes Injury Type Data

Reefton Injury Type Data

Philippines Injury Type Data

0

20%

2008 2009 2010 2011

40%

60%

80%

100%

0

20%

2008 2009 2010 2011

40%

60%

80%

100%

0

20%

2008 2009 2010 2011

40%

60%

80%

100%

FAI

FAI

FAI

MTI

MTI

MTI

LTI

LTI

LTI

FA


28/3228

Health and Safety Training

The Macraes emergency response team was expandedto 45 members in 2011 and two Rookies emergencyresponse training courses were conducted for the newadditions to the team. Introduced in 2010, the Rookiestraining courses are two weeks in duration and encompassall aspects of the requirements for the emergencyresponse team from basic first aid to underground rescuein low visibility using BG4 breathing apparatus.

Other ongoing health and safety training at the CompanysMacraes and Reefton operations is summarised below:

Health and Safety Initiatives

Macraes Emergency response training Intensive fire fighting Patient extraction (light vehicles and mining equipment) Use of lifting bags Work and rescue at heights Vertical and rope rescue Pre hospital care training

Advanced and general first aid BG4 and CABBA breathing apparatus use Confined space and rescue in toxic atmospheres Underground rescue training Flu inoculations and employee health checks Fire extinguisher training Fire warden and building warden training Underground staff evacuation Drug and alcohol sample collection training

Reefton Light vehicle skid control Crane and telehandler training

Pre hospital care training Advanced and general first aid Respiratory awareness BG4 and CABBA breathing apparatus use Confined space and rescue in toxic atmospheres Coordinated incident management

In 2011, the Macraes operation made changes to its drugand alcohol policy to better reflect the prevalence and useof synthetic cannabis type drugs within the wider community.Select Macraes staff also completed more Incident, Cause,Analysis, Method (ICAM) system of root cause analysistraining. The ICAM system was implemented by OceanaGold

in 2010 to provide root cause analysis of all health and safetyincidents across the Companys New Zealand operations.(Refer to Case Study 05: The Root Cause). Additionally,the internal bi-annual ACC audit was conducted on site atMacraes in preparation for the external audit due in 2012 andinternal audits of all business units were carried out to ensurecompliance with the health and safety management system.

At Reefton, random drug and alcohol testing was carriedout on all staff and contractors, with blanket alcohol andrandom drug testing implemented for all new inducteesas part of a review of the induction process. The OSPAT(Occupational Safety Performance Assessment Technology)fitness for work system was also run across the miningoperation with plans to expand the system site-wide in2012. Priority was placed on completion of Job SafetyAnalysis across the Reefton operation, with the creation ofarea audits carried out in addition to safety observation walks.

Workers compensation claims include of all FAI, MTI andLTI injuries in the total claim number for each operation.OceanaGold is examining strategies to permanently reduceworkers compensation claims across its New Zealandoperations and aims to post a meaningful reduction in claimnumbers next year.

An error in data capture for 2010 workers compensationclaims at the Macraes and Reefton operations has been

identified and adjusted accordingly.

Workers Compensation Claims

0

10

20

30

40

50

60

70

Macraes Reefton Philippines

2011 Claims

2010 Claims

2009 Claims

2008 Claims



In 2012, up-skilling of emergency responders at Reeftonwill include alternative pain relief and adrenaline foranaphylactic shock, bringing training in line with that at theMacraes operation.

At the Didipio Project, the Central Safety Committeeoversees a site specific emergency management plan. In2011, basic life support and standard first aid training wasconducted in partnership with the Philippines National Red

Cross.Other training initiatives included:

Risk management Hazard identification Daily pre-shift toolbox meetings Workplace inspections Fire extinguisher training Departmental risk register completion

Didipios emergency response capabilities andprograms comprise:

Two ambulances and medical clinic on site A full-time medical doctor on site

An emergency management plan An emergency response team

Additionally, the Central Safety Committee membershipwas renewed, coupled with the projects broader safetymanagement system in preparation for the increased levelof activity on site.

Contribution to Health and Safetyin the Community

OceanaGolds emergency response teams also assistwherever possible at off site medical emergenciesoccurring within the communities around OceanaGolds

New Zealand operations.In 2011, members of the Macraes emergency responseteam members attended incidents within the localcommunity including suspected heart issues, allergicreactions, a high speed vehicle collision resulting in twopatients being airlifted to Dunedin hospital, a medical eventat a local farmhouse, a dislocated pelvis and a high speedrollover which saw the driver also airlifted to Dunedinhospital. The installation of two dedicated helicopterlanding pads on site has dramatically improved the abilityof the Macraes team to respond swiftly and effectively tohealth and safety emergencies at its operations and withinsurrounding communities.

A number of OceanaGold staff from both the Macraes andReefton operations are also committed volunteers withorganisations such as the local fire brigade and the St Johnambulance service, demonstrating a strong commitmentto the communities in which they live and work.

In the Philippines, the Health and Safety clinic establishedin 2006 was maintained by the Company. Clinic staffinclude paramedics from SOS International and arebacked by an emergency response team of select securitypersonnel with first aid and life support training. Sinceestablishment of the clinic, thousands of local communitymembers have been treated for a range of medical

conditions some of whom are transferred to the nearesthospital using the Company ambulance.

2012 Health and Safety Targets

New Zealand Complete a safety systems audit process across

New Zealand sites.

Complete internal audits of business units compliancewith the health and safety management system.

Monitor occupational health for all staff.

Complete external ACC audit this year.

Continue incident root cause analysis training for key staff.

Continue random drug and alcohol testing across all sites.

Reduce damage and injuries from 2011.

Achieve LTI rate lower than the Australian miningindustry average.

Philippines Zero fatalities.

Total Recordable Injury Frequency Rate to be < 9.

Ensure all hazards are reported.

Behavioral Based Workplace Observations to be >100.

90% of employees to receive basic first aid, hazardidentification and risk assessment training.

An external audit of the Emergency Response Procedureincluding helicopter medivac with local and regionalgovernment stakeholders.

A quarterly update and review of site and departmentalRisk Registers.

Develop auditing and performance management systemsto ensure supervisors effectively manage safety as a linemanagement function.

Implement 50 Safe Work Procedures.

Develop and implement a program for Management Team

safety activities including:1. Contribution to toolbox meetings;2. Safety tours / walkround;3. Participation in investigations; and4. High visibility compliance (pre-starts etc).

Implement a Crisis Management Plan.

Below: Reefton processing plant,

New Zealand


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Workplace

OceanaGolds people are the key to its business successnow and in the future. People and workplace productivityare managed by the Companys Corporate People policywhich focuses on the following areas:

Honesty and integrity Values

Diversity Equity Harassment Talent management

The policy is applied throughout the Company and ispractically managed via its people policy and proceduremanuals in New Zealand and the Philippines. Thistransparent approach ensures that while high level goalsand objectives are openly communicated to all staff,implementation on the ground is specifically tailored toeach site.

OceanaGold is also engaged in the ongoing professional

development of its people and works hard to developstrategies aimed at staff retention across the business.

Workplace Profile and Diversity

Employment StatusNew Zealand full time employees increased from 551 in2010, to 755 in 2011, while contractor numbers fell from258 in 2010 to 132 in 2011 reflecting the transition fromcontract mining to owner mining at Frasers Underground

and Reefton Open Pit mines.

The New Zealand operations part-time and casualemployee number remained steady at 17 in 2011.

Philippines full time employees rose from 101 in 2010 to251 in 2011. An additional 615 contractors were employedby the Company, up from 116 the previous year, along with10 casual employees. These workplace increases stemdirectly from construction activity at Didipio during 2011and comprise predominantly local community members.(Refer to Case Study 06: Looking Local).

Melbourne head office full time employees also increased

from 12 to 15 in 2011, with a corresponding 50% jumpin female head office employees. This increase reflectsCompany expansion and its growing requirement forappropriately qualified executive staff.

Staff TurnoverStaff turnover in New Zealand rose from 9% in 2010to 24% in 2011. This increase in turnover is reflective ofthe booming mining industry and demand for experiencedlabour. OceanaGold is committed to achieving a betterstaff retention rate in future years via the continuance andimplementation of key employee initiatives that includemore flexible, family friendly shift schedules, greaterprofessional and personal development and specialised

training opportunities.

Philippines staff turnover was 19% in 2011, an increaseon the previous years relatively stable staff base.

Melbourne head office employee turnover rose from16% in 2010 to 20% in 2011.

Gender DiversityMale employees still account for the majority ofOceanaGolds New Zealand full time workforce dueto mining related roles being historically held by males.In 2011, female staff dropped slightly and now comprise12% of the Companys employees in New Zealand, compared

with 15% in 2010. In the Philippines, 32% of the full timeemployee population is female, versus 34% in the prior year.

Full time employee figures at all operations

Head Office (People numbers FTE)

New Zealand & Philippines (People numbers FTE)

Philippines

New Zealand

20080

100

200

300

400

500

600

700

800

2009 2010 2011

20080

24

6

8

10

12

14

16

2009 2010 2011

Employee Turnover

0%

10%

20%30%

40%

50%

60%

70%

Head Office NZ Philippines

2011

2010

2009

2008


31/32OceanaGold Corporation Sustainability Report 2012 31OceanaGold Corporation Sustainability Report 2012 31

Talent Management

Personal and professional employee development is ashared responsibility and commitment involving individualemployees, their managers, supervisors and the Company.At OceanaGold, talent management is governed by theCompanys overarching Corporate People Policy and at site

level, implementation of tailored initiatives supports itspolicy statements in this area.

In New Zealand, the innovative Mind4Gold programhas formed the cornerstone of the Companys staffdevelopment. Introduced in 2009 to better assess,deliver and monitor training, development and successionplanning, the program has delivered the various trainingand development outcomes required and is regarded as oneof the Companys most successful workplace initiativesto date. As part of the Mind4Gold program in 2011 thefollowing courses were offered to New Zealand employees:

Turning Point:

Personal development for leaders The Learning Wave:

Core skills, supervisory and front line management Key Skills:

Computer training Human Resources Seminars

Internal training and performance management coaching

In the Philippines, focus has been placed onmaintaining health and safety training for all staff givenrecommencement of the project construction in 2011.OceanaGolds focus on staff development also saw theCompany register 10 participants for the 2011 Mining

Symposium (Safety, Health, Environment and SocialDevelopment) in the Philippines.

For more information on OceanaGolds sustainabilitypolicy and current programs please visit the Companywebsite: www.oceanagold.com

Case Study 06:Looking Local

From the outset of the Didipio Project recommencementof construction in 2011, OceanaGold has set itself a clearpolicy of local recruitment wherever possible. This policyreflects the Companys commitment to human rights and

is desire to economically empower the lives of those withinthe communities surrounding its operations.

At Didipio, specific targets governing local recruitmenthave been set and are being actively implemented by itsdedicated Human Resources team.

These targets include a Didipio workforce comprising 60%local community members during the projects first year ofoperation, rising to 80% local in year two following trainingof the initial locally sourced employees in a variety ofmining trades.

This policy also applies to Didipios burgeoning contractor

workforce which has increased considerably in line withconstruction and commissioning of the project in late 2012.At present over 70% of contractors working at Didipioare local, with this percentage likely to increase as theoperation matures.

Below: OceanaGold employees andcontractors on site at Didipio Projectin Philippines

0%

20%

40%

60%

80%

100%

Head Office NZ Philippines

Gender Diversity (2011)

Male

Female


32/32

OceanaGold CorporationCorporate OfficeLevel 5, 250 Collins StreetMelbourne, Victoria, 3000Australia

PO Box 355,Flinders Lane Post OfficeMelbourne, Victoria, 3000Australia

Documents

OGC 2012 SustainabilitySingleLR FINAL