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Third party assurance on reporting: Report of the Independent Assurance Provider to the Directors of Gold Fields Limited

 

Third party assurance on reporting: Report of the Independent Assurance Provider to the Directors of Gold Fields

Limited Assurance Report on Selected Sustainability Information

We have undertaken an assurance engagement on selected sustainability information, as described below, and presented in the 2010 Annual Report of Gold Fields Limited (Gold Fields) for the period 1 July 2010 to 31 December 2010 (the Report), as set out on the pages indicated below.

Subject Matter

The subject matter of our limited assurance engagement and related assurance is as follows:

1. In compliance with the International Council of Mining and Metals’ (ICMM) Sustainable Development Framework Assurance Procedure (ICMM Assurance Procedure):
  (a) Limited assurance on Subject Matter 4 on page 189 of the Report:
 
  • Social and Labour Indicators - Percentage of women in mining (WIM), HDSA (percentage in management), Total HDSA Procurement Spend and Social Economic Development spend (SED) in ZAR.
  • Health and Safety – Number of cases of Silicosis diagnosed and compensatable (rate per 1000 employees), Number of cases of noise induced hearing loss diagnosed and compensatable (NIHL), Number of Tuberculosis cases diagnosed and treated, Number of respiratory diseases cases reported and treated, Number of employees in HAART programme (active), Percentage of workforce on the voluntary counselling and testing (VCT) programme), Lost time injury frequency rate (LTIFR), Medical treatment incident frequency rate (MTIFR), Number of fatalities and number of cases of Malaria tested positive.
  • Environmental Indicators – Number of environmental incidents (level 2 and above) Reported, CO2 Equivalent Emissions (in Tonnes), Average quality of water discharged in milli-Siemens/metre (MS/m), Electricity (MWh), total water consumption from all sources (in Ml) and diesel (TJ).
  (b) Limited assurance on Gold Fields’ self-declaration of the GRI A+ application level (pg. 3) – Subject Matter 5.
   
2) In compliance with the Broad-Based Socio-Economic Empowerment Charter (BBSEEC) for the South African Mining Industry (2010):
  (c) Limited assurance on the following selected mining charter elements on page 174 of the Report:
 
  • HDSA Ownership.
  • Housing and living conditions - Percentage reduction of occupancy rate towards 2014 target; Percentage conversion of hostels into living units.
  • Procurement and Enterprise Development - Procurement spent from BEE entity on capital goods services and consumable goods.
  • Employment Equity - Top Management (Board level); Senior Management (ExCo); Middle Management; Junior Management.
  • Mine Community Development - Implement approved community projects.

Directors’ Responsibilities

The Directors are responsible for the selection, preparation and presentation of the selected sustainability information, the identification of stakeholders and stakeholder requirements, material issues, for commitments with respect to sustainability performance, and establishing and maintaining appropriate performance management and internal control systems from which the Reported information is derived. The Directors are also responsible for the selection and application of the following Reporting criteria used in the evaluation of the subject matter:

  • The Global Reporting Initiative (GRI) G3 Guidelines;
  • The GRI G3 guidelines for the A+ application level;
  • Subject matters of the ICMM sustainable development framework:
 
  • Gold Fields Reported performance during the given Reporting period for the identified material SD risks and opportunities (ICMM Subject Matter 4)
  • Gold Fields self declared A+ application level of the GRI G3 Guidelines in relation to subject matter 5 of the ICMM Assurance Procedure (ICMM Subject Matter 5)
  • Scorecard for the Broad-Based Socio-Economic Empowerment Charter (BBSEEC) for the South African Mining Industry (2010).

Our Responsibility

Our responsibility is to express limited assurance conclusions on the subject matter in (a), (b) and (c), based on our work performed.

We conducted our engagement in accordance with the International Standard on Assurance Information (ISAE) 3000, Assurance Engagements other than the Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board. That Standard requires that we plan and perform our engagement to obtain limited assurance about whether the selected information is free from material misstatement.

A limited assurance engagement involves performing procedures to obtain evidence about the identified subject matter. Our procedures selected depend on our judgment including the risks of material misstatement of the selected sustainability information in the Report, whether due to fraud or error. In making our risk assessments, we considered internal controls relevant to Gold Fields’ preparation of the Report. We believe that the evidence obtained from our work performed provides an appropriate basis for the conclusions expressed in this Report. In a limited assurance engagement, the evidence gathering procedures are less than where reasonable assurance is expressed.

Summary of work performed

Our work included the following evidence-gathering procedures:

  • Interviewing management and senior executives at group level to evaluate the application of the GRI G3 principles and to obtain an understanding of the internal control environment relative to the Reported sustainability information.
  • Inspecting documentation at corporate level to corroborate the statements of management and senior executives in our interviews.
  • Understanding the risk assessment process and the information systems which include the related sustainability Reporting processes.
  • Testing the processes and systems at group level and site level which generate, collate, aggregate, monitor and Report the selected sustainability information.
  • Visiting the following Mining Operations:
 
  • Driefontein Mine;
  • Kloof Mine;5)
  • South Deep Mine;
  • Damang Mine;
  • Tarkwa Mine;
  • St Ives Mine; and
  • Cerro Corona Mine.
  • Conducting an application level check on the Report to evaluate whether all disclosure requirements of the GRI A+ application level have been adhered to.
  • Evaluating whether the information presented in the Report is consistent with our findings, overall knowledge and experience of sustainability management and performance at Gold Fields.

Conclusions

(a) On the selected performance data

Based on our work performed, nothing has come to our attention that causes us to believe that the selected performance data set out in (a) above for the period ended 31 December 2010 is not fairly stated, in all material respects, in accordance with the Global Reporting Initiative (GRI) G3 Guidelines.

(b) On Gold Fields self-declaration on GRI G3 A+ application level

Based on our work performed, nothing has come to our attention that causes us to believe that Gold Fields’ selfdeclaration of an A+ application level is not fairly stated, in all material respects, on the basis of the GRI G3 Guidelines.

(c) On the Scorecard for the Broad-Based Socio-Economic Empowerment Charter (BBSEEC) for the South African Mining Industry

Based on our work performed, nothing has come to our attention that causes us to believe that the selected mining charter elements set out in (c) above have not been prepared, in all material respects, in compliance with the Broad-Based Socio-Economic Empowerment Charter for the South African Mining Industry (2010).

Emphasis of matter

We draw attention to pg 3, which indicates that Gold Fields has changed its financial year end from end-June to end-December, and the period covered by the Report and the comparatives presented in these circumstances.

We are required to Report our findings on the International Council of Mining and Metals’ (ICMM) Sustainable Development Framework: Assurance Procedure (ICMM Assurance Procedure) in respect of:

1. The alignment of Gold Fields’ sustainability policies to the ICMM 10 Sustainable Development (SD) Principles and any mandatory requirements set out in ICMM Position Statements (ICMM Subject Matter 1).
2. The Reporting of Gold Fields’ material sustainable development risks and opportunities based on the review of its business and the views and expectations of its stakeholders (ICMM Subject Matter 2).
3. The implementation of systems and approaches that Gold Fields is using to manage its safety risks (ICMM Subject Matter 3).

Directors’ Responsibilities

The Directors are responsible for:

  • The alignment of Gold Fields’ sustainability policies to the International Council of Mining and Metals’ (ICMM) 10 Sustainable Development (SD) Principles and any mandatory requirements set out in ICMM Position Statements.
  • The Reporting of Gold Fields’ material sustainable development risks and opportunities based on the review of its business and the views and expectations of its stakeholders
  • The implementation of systems and approaches that Gold Fields is using to manage its safety risks.

Our Responsibility

Our engagement included Reporting on the ICMM Assurance Procedure in respect of 1, 2 and 3 (ICMM Subject Matter 1-3) based on the knowledge obtained in our evidence gathering procedures in our assurance engagement on the subject matter in (a) and (b) set out in our Limited Assurance Report on Selected Sustainability Information.

Findings

Based on our evidence gathering procedures in our assurance engagement on the subject matter in (a) and (b) set out in our Limited Assurance Report on Selected Sustainability Information, nothing has come to our attention that causes us to believe that:

1. Gold Fields’ sustainability policies are not aligned with the ICMM 10 Sustainable Development (SD) Principles and any mandatory requirements set out in ICMM Position Statements.
2. Gold Fields has not reported material sustainable development risks and opportunities based on the review of its business and the views and expectations of its stakeholders.
3. Gold Fields has not implemented systems and approaches to manage its safety risks.

Independence, Expertise and Limitation of Liability

Our work has been undertaken to enable us to express the assurance conclusions on the subject matter in (a), (b) and (c) in our Report on Selected Sustainability Information together with findings on 1, 2 and 3 in our Report on the ICMM Assurance Procedure to the Directors of Gold Fields in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than Gold Fields, for our work, for this Report, or for the conclusions we have reached.

We comply with the appropriate requirements of the International Federation of Accountants (IFAC) Code of Ethics for Professional Accounts and have systems and processes in place to monitor compliance with the code and to prevent conflicts regarding independence.

Our work was carried out by a multidisciplinary team of health, safety, social, environmental and assurance specialists with extensive experience in sustainability Reporting.

KPMG Services (Pty) Limited

Per PD Naidoo
Director
Johannesburg
23 March 2011

KPMG Services (Pty) Limited

Per I Kramer
Director
Johannesburg
23 March 2011

The table below contains the selected sustainability information over which limited assurance was provided by KPMG. The period covered is from 1 July 2010 to 31 December 2010.

    Parameter   Unit   Data
Environment   Average quality of water discharged   mS/m   79
  CO2 equivalent emissions   Tonnes CO2-e   2,753,885
  Electricity   MWh   2,781,826
  Environmental incidents - Level 2 and above   Number   50
  Total water consumption from all sources   Ml   39,053
  Diesel   TJ   2,527
Health   Tuberculosis   Cases diagnosed and treated (number)   654
  Silicosis   Cases diagnosed and compensatable
(rate per 1,000 employees)
  1.63
  Noise Induced Hearing Loss   Cases diagnosed and compensatable (number)   44
  Malaria   Cases tested positive (number)   155
  Respiratory diseases   Cases reported and treated (number)   1,887
  HAART - Active   Number of employees   2,991
  VCT   % of workforce on VCT programme   5.39
Safety   LTIFR   Number   4.20
  MTIFR   Number   6.45
  Fatalities   Number   12
Social   SED Spend   Rand   227,349,166
Labour   HDSA Procurement spend   Rand   1,467,460,917
  Women in Mining   %   3.00
  HDSA in Management (DL - FL)   %   41.30