Hidden Valley Mine - Morobe Mining Joint Venture

Hidden Valley Mine
PNG Mining and Petroleum Investment Conference
Sydney December 2012
Bevan Jones – General Manager HVSL

Disclaimer
Forward Looking Statement
These materials include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”,
“expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of
management, anticipated production or construction commencement dates and expected costs or production outputs.
Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the company’s actual results, performance and achievements to differ
materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general
economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and
permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate,
environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist
and affect the company’s business and operations in the future. The company does not give any assurance that the assumptions on which forward looking statements are based will prove to be
correct, or that the company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the company or management or beyond
the company’s control.
Although the company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements,
there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable
control of the company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of
issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to
publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.
Ore Reserves and Mineral Resources Reporting Requirements
As an Australian company with securities listed on the Australian Securities Exchange (“ASX”), Newcrest is subject to Australian disclosure requirements and standards, including the
requirements of the Corporations Act and the ASX. Investors should note that it is a requirement of the ASX listing rules that the reporting of ore reserves and mineral resources in Australia
comply with the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”) and that Newcrest’s ore reserve and mineral
resource estimates comply with the JORC Code. As a company listed on the Toronto Stock Exchange (“TSX”), Newcrest is subject to certain Canadian disclosure requirements and standards,
including the requirements of National Instrument 43-101 - Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”). In accordance with NI 43-101,
Newcrest reports its ore reserves and mineral estimates in compliance with the JORC Code, along with a reconciliation to the material differences between the JORC Code and the applicable
definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM Definition Standards). There are no material differences between the definitions of Measured, Indicated
and Inferred Mineral Resources, and Proven and Probable Reserves, under the CIM Definition Standards and the equivalent or corresponding definitions in the JORC Code.
Competent Person’s Statement
The information in this presentation that relates to Exploration Results and other scientific and technical information is based on information compiled by C. Moorhead, EGM Minerals for Newcrest
Mining Limited who is a Fellow of The Australasian Institute of Mining and Metallurgy, and a full-time employee of Newcrest Mining Limited. Mr Moorhead has sufficient experience which is
relevant to the styles of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the JORC Code and is
a Qualified Person within the meaning of NI 43-101. Mr Moorhead consents to and has approved the inclusion in this presentation of the matters based on this information in the form and context
in which it appears including sampling, analytical and test data underlying the results. For details of exploration reports refer to the Newcrest website at www.newcrest.com.au.
2

Private Securities Litigation Reform Act Safe Harbour Statement and
Competent Person Statement
This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the
Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbour created by such sections. These statements may be
identified by words such as “expects”, “looks forward to”, “anticipates”, “intends”, “believes”, “seeks”, “estimates”, “will”, “project” or words of similar meaning.
All statements other than those of historical facts included in this presentation are forward-looking statements, including, without limitation, (i) estimates of
future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales, (iii)
estimates of future cash costs;( iv) estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (v) statements
regarding future debt repayments; (vi) estimates of future capital expenditures; and (vii) estimates of reserves, and statements regarding future exploration
results and the replacement of reserves. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or
belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other
factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such
risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or
recovery rates from those assumed in mining plans, project cost overruns, as well as political, economic and operational risks in the countries in which we
operate and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors (such as availability of credit or
other sources of financing), see the Company's latest Annual Report on Form 20-F for the year ended June 30, 2012 which is on file with the Securities and
Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly any revisions to any
"forward-looking statement" to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except
as may be required under applicable securities laws.
Competent Person Statement
The information in the presentation that relates to Exploration Results, Resources and Reserves was compiled by Greg Job, Executive Growth and Resource
Development, Harmony Southeast Asia who is a member of the Australasian Institute of Mining and Metallurgy, and a full time employee of Harmony Gold
Mining Company Limited. Mr Job has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to
the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “JORC Code”. Mr Job consents to the inclusion in
this presentation of the matters based on this information in the form and context in which they appear.

Hidden Valley Mine
Tailings Storage
Facility
Watut River
Process Plant
Hamata Pit
Ridgeline
Camp / Offices
Hidden Valley Pit

Morobe Mining Joint Ventures
• Newcrest and Harmony
created three Joint Ventures
in 2008
– Hidden Valley JV
– Wafi-Golpu JV
– Exploration JV
• District mineral endowment is
+33 Moz Au and +9 Mt Cu
• Tenement holding is one of
the most prospective on the
PNG mainland
• Hidden Valley Mine is first
project to enter into
production
• Wafi – Golpu Project has
completed Prefeasibility Study
for the Golpu copper deposit
Discovering, developing and operating gold mines in Morobe
Province to build a sustainable long term business to benefit
all our stakeholders

Location
– Hidden Valley is located in the Morobe province in Papua New Guinea,
and is approximately 120km by road, south west of Lae, the nearest
commercial centre within the region

Safety Performance - SIFR

Environment Approach - Overview
• Site is permitted under the
Environment Act (2000)
• Extensive on and off site
monitoring program supported
by scientific studies
• Experienced environmental
team - 33 full time staff and 30
casuals
• On-site analytical laboratory
• Progressive rehabilitation
• Industrial waste management
program
• Environmental Management
system with strong focus on
water quality

Environment Approach – Waste Management
• The Hidden Valley Mine has an
engineered tailings storage facility
• No mine tailings are discharged
into the environment
• PNG’s only large scale tailings
storage facility.
• Decant Water is treated and
recycled
• Waste rock is placed in
engineered Waste Dumps
• Geotechnical and hydrological
design and construction standards
implemented across the site
• Waste Dump strategy; engineered
cover followed by re-vegetation
• Environmental management is
principal operational driver

Economic benefits to PNG
K563 million in FY12
PNG Goods &
Services
22%
Morobe Goods &
Services
55%
Taxes & Levies
5%
Employment
11%
Royalties / SSG
5%
Community
2%

Benefits for Morobe Province
Procurement within Morobe
Wages & Benefits
Royalties
Benefit Sharing & other community assistance
K300m pa
K23m pa
K28m pa
K9.5m pa

Hidden Valley Royalties
Royalty Recipients
Share K million
• Royalty payments commenced in
October 2009
• K41.8 million paid to date to recipients
– K15.08 million to Morobe Provincial
Government
– K8.38 million to six Bulolo LLGs
– K16.33 million to Hidden Valley
Landowners
– K2.09 million to non-landowner
communities
• From November 2012 the royalty to
the Morobe Provincial Govt. will be
split 50:50 as between MPG and the
Bulolo District.
• This follows an agreement reached by
the new Governor with the Member for
Bulolo.
Morobe Provincial Government 36.0% 15.08
Mumeng LLG 3.0% 1.26
Waria LLG 2.0% 0.84
Buang LLG 1.0% 0.42
Wau/Rural LLG 5.0% 2.09
Watut LLG 5.0% 2.09
Wau/Bulolo Urban LLG 4.0% 1.68
Highway Communities 0.5% 0.21
River Communities 0.5% 0.21
Subsidiary Landowner Communities 1.5% 0.63
Settler Communities 2.0% 0.84
Wafi Landowner Association 0.5% 0.21
Nakuwi Landowner Association 2.0% 0.84
Future Generations Trust 2.0% 0.84
HV Landowners - Winima recipients 8.75% 3.66
HV Landowners - Kwembu recipients 8.75% 3.66
HV Landowners - Nauti recipients 17.5% 7.33
Total Royalties Paid to Date 41.88

People
Creating Employment
• Direct employees
– 1 822 direct employees
– 91% are PNG citizens
– 54% are from Morobe
– 41% are Bulolo district
– 14% are female
• Contractors
– 2 281 contractor
employees
– 90% are PNG citizens
– 46% are from Morobe
• Strong focus on training
and development of local
employees

Community & Regional Development
• Sustainable development plan
initiated in 2010
• Development planning aligned with
Ward, LLG and District priorities
• K20 million invested in community
and regional development in since
2010
– Health
– Water supply and sanitation
– Education
– Agriculture / aquaculture
– Community infrastructure
– Community and LLG capacity
building programs
– Lae to Bulolo Highway
maintenance
• K11 million in special support grant
funds available through the Morobe
Project Management Unit

Stakeholder Engagement
Keeping our stakeholders informed
• Regular community liaison
• Government briefings – Local,
Provincial and National
• Mine visits by community leaders
and government officials
• Joint MMJV/Government
community patrols
• Regular employee briefings and
updates
• Capturing and responding to
stakeholder grievances
• MMJV website
www.morobejv.com

Hidden Valley Mine
• Two open pit mines – Hidden
Valley and Hamata
• Process plant recovers gold
and silver
• Engineered tailings dam to
store tailings
• Overland conveyor delivers
ore from Hidden Valley open
pit to process plant
• Average annual production of
250 koz Au & 3.6 Moz Ag
• 14 year mine life
• Over 2,500 HVJV employees
& contractors
• Officially opened Sept 2010

Infrastructure
• 4.5km Overland pipe conveyor – reduces reliance on diesel powered truck
haulage in mountainous terrain
• Connection to the Yonki Hydro scheme to provide >90% of electrical needs
• Benefits delivered by PPL to local communities via rural electrification
programs along the transmission line corridor

Mining Fleet
• 5 x PC2000 Komatsu Excavators
• 2x PC1250 Komatsu Excavators
• 30 x HD785 Komatsu Trucks
• 36 x HM400 Articulated Komatsu Trucks
• 7 x ECM 720 Production Drills
• 9 x Komatsu Dozers (375/275)
• 3 x Komatsu 825 Graders
• 3 x WA900 Komatsu Front End Loaders

Mobile Fleet Maintenance
• From the commencement of
operations UMW maintained the
fleet on a MARC Contract
• The contract expired at the end of
June 2012
• Due to operational and efficiency
reasons it was decided to perform
the maintenance in house
• MMJV developed its own in house
Mobile Fleet Maintenance capability
and integrated the UMW workforce
into the team
• The integration has progressed well
and the Fleet is being brought back
to the required operational condition

The Milling Process
Grinding
Gravity/ILR
Flotation
Conc Leach
CCD
Refinery
CIL
Elution
Doré
TSF
Solution Detoxification
Pihema Discharge

Processing Plant Upgrade Projects
130M Kina in capital:
Current carbon screen to be replaced
•HV Crusher Upgrade
•Flotation automation
•Reagent automation
•Interstage Screen Installation
•Oxygen Plant Installation
•CCD & Thickener Optimization
•INCO Expansion
•Merrill Crowe Capacity Expansion
•CIL Contactor & INCO
•Mobile Scats Crushing
Targets:
•Increase TPH to 4.7MTPA
•Increase Gold Recovery to 88.2%

Mobile Scats Crushing
Flotation
Automation
Interstage Screen
Installation
Inco Expansion
Merrill Crowe Capacity
Expansion
Oxygen plant
Installation
CCD and Thickener
Optimisation

Hidden Valley FY13 Key Projects
FY13 Key Projects
– Hidden Valley Crusher Upgrade
– 4.7 MTPA Process Plant Upgrade
– Additional Mining Fleet
• 2 x PC2000 Excavators
• 2 x PC1250 Excavators
• 6 x HD 785 Dump Trucks
• 20 x HM400 Dump Trucks
• 2 x DM30 Drills
• 2 x 375 Dozers
• 2 x 16M Graders

OLC Ore haulage
• Secondary jaw crusher to be replaced by
gyratory cone crusher
• Overland conveyor (OLC)

Crusher design and layout
• Install new primary wobbler, chutes, supporting
steelwork and access platforms
• Upgrade CV-03 with impact beds, idlers, drive
• Upgrade Bin apron feeder drive
• Associated E&I changes
• Install new secondary XL900 Raptor Crusher
• Install new secondary wobbler, chutes,
supporting steelwork and access platforms.
• Upgrade CV-04 with impact beds, idles, drive
and relocate tail end.
• Associated E&I changes
• Install larger apron feeder, bin, chutes,
supporting steelwork and access platforms.
• Upgrade CV-06 loading zone, drive, and all
pulleys.
• Associated E&I changes

Hidden Valley Exploration
– Prospective exploration targets
within the ML and within a 10km
radius that could add to the
reserve base
– Will lever off existing
infrastructure
– Exploration work programs
flagged for
• Kerimenge
• Mungowe
• Yafo
– generative work along
Northwest trending fault
systems

Hidden Valley Values
At Hidden Valley our values are critical in defining who we are and how we behave
as a team. Our values guide everything we do and plan for the future.
• WE MAKE SAFETY OUR CORE VALUE – The safety of our people always comes first.
• WE RESPECT EACH OTHER, THE ENVIRONMENT & COMMUNITY – By treating
people with respect we allow them to take ownership and achieve their very best. We
respect every person for who they are and the unique contribution they bring to the team.
We take pride in benefiting our communities and respecting the environment in which we
operate.
• WE TAKE ACCOUNTABILITY AND GET RESULTS – It means everything to us when
we follow through on commitments and deliver results consistently. We always take
responsibility for our deliverables, behaviour and the way we go about our business.
• WE SHOW BEST FOR BUSINESS FOCUS – We always act in a manner which
produces outcomes that are best for our business. By doing this we help Hidden Valley
to realise its potential and therefore benefit all our stakeholders.
• WE WORK TOGETHER EFFECTIVELY – By working together in a safe way we can
produce extraordinary results. We listen effectively and learn from each other, showing
confidence and trust in our colleagues.
• WE HAVE A SENSE OF URGENCY – We set high standards and always strive to
achieve them. By showing initiative, urgency and being prepared to overcome obstacles
we achieve our objectives.

Em Tasol