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Energy and Emissions Management

Improving our energy efficiency and reducing greenhouse gas (GHG) emissions not only reduces climate related risks to the broader environment, it brings inherent cost advantages. We recognize that our activities result in GHG emissions, from the mobile equipment required to operate a mine, for example, and indirectly from off-site generated electric power that we purchase to supply our operations. We make efforts to decrease our energy consumption and minimize GHG emissions throughout our operations.

Energy specialists have been engaged to assess opportunities for savings and a number of projects are being implemented across New Gold sites. However, while our systems are still building baseline data, emission reduction data has thus far not been collected for many of these initiatives. We aim to improve our measurement capabilities and ensure we have complete baseline data, with a view to identifying and quantifying viable energy alternatives to reduce our carbon footprint.

For the purposes of this report, carbon dioxide (CO2) emissions generated by mobile equipment are calculated from diesel fuel and gasoline consumption using the World Resources Institute and the World Business Council for Sustainable Development Greenhouse Gas Protocol for Direct Emissions (Scope 1 Emissions), available at www.ghgprotocol.org. Emissions from diesel consumption reported here include the greenhouse gas component of fuel oil used in ammonium nitrate fuel oil explosives. The CO2 generated indirectly from purchased energy is calculated using the Greenhouse Gas Protocol for Electricity Purchase (Scope 2 Emissions).

Performance in 2013

In 2013, Towards Sustainable Mining (TSM) Energy and GHG Management Level B was achieved in all operations.

Significant efforts towards reducing energy consumption and increasing energy efficiency occurred at New Afton, where a new Energy Management System (controlled by an innovative Energy Management Information System) was implemented in 2013. A compliance audit took place at New Afton in late 2013, and the operation was certified ISO 50001 early in 2014 – the first mine in North America to achieve this certification. At Cerro San Pedro, we reduced the diesel consumption by almost 13% as a result of a change in the mining fleet, with the integration of twelve 100-tonne trucks to our fleet of 50-tonne trucks.

Fuel Consumption by Major Sources

Major Sources 2008 2009 2010 2011 2012 2013
Diesel Consumption (000s litres) 21,279 32,989 42,598 50,215 55,632 52,584
Gasoline Consumption (000s litres) 211 215 587 596 1,050 809
Propane (000s litres) (includes LP) Not reported Not reported 1,578 1,285 1,452 1,310
Natural Gas (000 litres) Not reported Not reported Not reported Not reported Not reported 1.26

In 2013, notable reductions in the total consumption of diesel, gasoline, and propane were observed. This is the first year we are reporting on natural gas, which is only used at New Afton.

Indirect Energy Consumption

Indirect Energy 2008 2009 2010 2011 2012 2013
Power Purchased (MWhs) 108,313 107,241 120,656 140,875 204,427 251,1181
1

About 130,605 MWhs hydroelectric power. Primary fuels consumed to produce electricity other than hydroelectricity include coal, natural gas and renewables as reported by electricity providers.

While we reduced the consumption of diesel, propane and gasoline, we significantly increased the consumption of electric power. This is due to the first year of full production at New Afton and increased power required for ventilation systems at Peak.

In 2013, the total direct energy consumed across the company was 3,004,144 GJ. This includes 2,033,945 GJ from diesel, 28,040 GJ from gasoline, 33,443 GJ from propane, 4,691 GJ from natural gas and 904,025 GJ from electricity. New Gold does not produce or sell energy.

Greenhouse Gas Emissions and Efficiency

Emissions, as tonnes of CO2-e1,2 2010 2011 2012 2013
Diesel 114,231 134,618 149,093 147,103
Gasoline 1,353 1,374 2,403 1,865
Propane 2,293 1,742 2,232 2,113
Natural Gas3 n/a n/a n/a 2,637
Power 80,229 82,547 93,910 105,387
Total 198,106 220,281 247,638 259,105
Efficiency: Total emissions per 1,000 tonnes of ore processed, as Tonnes of CO2-E4 8.0 7.1 7.0 7.9
1

Carbon dioxide equivalent (CO2-e) emissions reported here may not be consistent with quantities reported by specific sites, since these are guided by regulations within the jurisdictions where we operate and according to their stipulated requirements and protocols.

2

Carbon dioxide equivalent (CO2-e) emissions generated by mobile equipment are calculated from diesel fuel and gasoline consumption using the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) Greenhouse Gas protocol for Direct Emissions (Scope 1 Emissions).

3

2013 is the first year reporting on natural gas and therefore natural gas emissions are included. Natural gas is only used at the New Afton Mine.

4

2013 total ore processed and ore to leach pads was approximately 32,661,000 tonnes.

Greenhouse Gas Efficiency GraphThe GHG emission efficiency has decreased in 2013 to levels similar to 2010, following two years of increased efficiency. The increase in 2013 is due to an increase in use of electric power and natural gas.