Annual Report 2009 Sustainability Report 3 OUR SUPPLY CHAIN $92 million, or 88% of all purchases, is spent directly in Thailand. This demonstrates our continued focus on local capacity building. Local sourcing also helps to reduce our overall carbon footprint. Source of Goods & Services 4 GOVERNMENT Royalties and Taxes The total royalties paid to the Thai authorities during the year was in excess of $7.5 million. These royalties are paid to the provincial government and the local village councils (60%) and the central government (40%). The royalty rose to almost US$60 per ounce, up from US$40 last year due to the nature of the Thai royalty regimen which is an incremental royalty rate based on the Baht denominated gold price. 88% Thailand Australia Other o/s 11% 1% 11% 1% 23 Certification Support for contractors Chairat Nhongphed is the head of the security team provided by Risk Protection Thailand at Akara. Chairat has worked at the mine for eight years. He describes Akara as a good citizen, taking care of people and the environment. “I feel really confident living here. I have no impact from the mine. The mine takes care of the environment and water is OK and don’t have any problem.” Chairat sees many things provided for local people by the mine and that extends to contractor employees like him. Rungthip Aoon-lhap is a sub-contractor working for the canteen service. Rungthip has worked for Akara since the mine opened and sees her chief benefit as good quality local employment. “It’s good that I joined Akara. I have a job here without moving to another province. I feel confident with Akara. I see the Company looking after people well and providing lots of training. The Company planting trees has created a good environment. I wish the mine would stay here forever so people can still have jobs with the Company.” Akara is the only mining company in the world to be certified in the SA 8000:2008 standard for social accountability. SA 8000 is based on the UN Universal Declaration of Human Rights, Convention on the Rights of the Child and various International Labour Organisation (ILO) conventions. It also has TLS 8001 (Thai Labour Standard 8001) certification. The Chatree gold mine management systems are certified to ISO 9001:2008, ISO14001:2004 and OHSAS18001:2007 standards for environment, quality and occupational health and safety. The Company laboratory is certified to ISO 17025 for fire assaying and bullion assaying. Kingsgate Consolidated Limited is also a signatory to the Extractive Industries Transparency Initiative. The EITI sets a global standard for transparency in oil, gas and mining industries. It aims to strengthen governance by improving transparency and accountability in the extractive sectors. www.kingsgate.com.au Kingsgate Consolidated Limited 88%