IN THIS SECTION
Delivering on our objectives for C2010 and C2011

 

Delivering on our objectives for C2010 and C2011

  Figure 1.2: Progress on objectives set for C2010
  C2010 Objectives   Progress
 
1. Improve safety indicators by 25% in the South Africa Region and 20% in the international regions
  In C2010, we made significant improvement in many of our key safety indicators. Group fatalities came down from 26 in C2009 to 18, whilst the Fatality Injury Frequency Rate for the Group dropped from 0.14 to 0.11 per million hours worked.

We have implemented a range of safety initiatives to address non-compliance to standards in the South Africa Region – non-compliance being the main reason behind fatalities within Gold Fields. These initiatives include competency building for supervisors, extensive employee engagement programmes, visible felt leadership by managers within the workplace, hazard identification and the prioritisation of disciplinary cases (p72-74).

In addition, we are stepping up the implementation of our holistic
‘24 Hours in the Life of a Gold Fields Employee’ wellness programme (p154).

 

 
2. Improve mining mix, quality and volume to produce 3.5 and 3.8 million attributable ounces of gold during 12 months to end-December 2010
  Good progress has been made in all regions, although further momentum is required in our South Africa Region. During C2010, our total production remained relatively stable at 3.5 million ounces (C2009: 3.6 million ounces), putting us in a strong position to maintain production of between 3.5 and 3.8 million attributable ounces for C2011 (p54).
 
3. Achieve an NCE margin of 20% in the 12 months to end-December 2010
  During C2010, our NCE margin improved from 9% in the March quarter to 20% in the December quarter.
 
4. Strengthen the regional organisational structure, including appropriate operational, financial and human resourcing
  All regional organisational and management structures are in place with the majority of positions filled.
 
5. Improved flexibility at our long-life shafts at KDC and Beatrix, through increased Mineral Reserve development
  We have focused on the mechanised flat-end development at our long-life shafts at KDC and Beatrix. This has marginally increased our ore development efficiency, in line with the goals set out in our revised Ore Reserve Reporting Protocol, and has significantly improved safety in these development areas.
 
6. Development of energy management strategies and energy savings of 5% of electricity consumption in the South Africa Region by the end of C2010
  By the end of C2010, we had achieved a saving of 14% against the baseline established after the electricity outages in C2008. This includes new equipment that has been used at our mines since then.
 
7. Implementation of competitive recruitment and retention strategies/practices to ensure the Group has an adequate supply of critical skills
  Talent management, mentorship and leadership development initiatives were rolled out across the Group. Specific actions implemented in C2010 include:
  • Introduction of a new and enhanced talent management strategy in the Australasia region (p145)
  • Establishment of a new career path framework for employees in the West Africa Region (p145)
  • Ongoing provision of extensive leadership and skills training (p144-146)
  • The promotion of cross-border mobility amongst employees
 
8. Significant advancement of the transformation objectives of the Group in line with the requirements of the South African Mineral Resources and Petroleum Development Act of 2002 and the new Mining Charter
  In C2010, we:
  • Satisfied the 2014 equity ownership requirements under the revised Mining Charter. This was spearheaded by the Employee Share Option Plan for our South African workers
  • Achieved the successful conversion of our old mining right into a new order mining right at South Deep (p173)
  • Continued the transformation of the Executive Committee with the appointment of two new HDSA executives. At Board level, the appointment of Dr Mamphela Ramphele as Chair and Sello Moloko as a non-executive director lifts the HDSA representation on the Board to 36% (p32)
  • Achieved representation of 41% at middle and senior management levels
 
9. Further advancement of positive and mutually beneficial relationships between Gold Fields and its stakeholders
  See our stakeholder engagement section (p46), as well as relevant case studies on:
  • The promotion of grass-roots engagement in the West Wits area (p47)
  • Integrated sustainable development at Cerro Corona (p162)
  • Community engagement at Tarkwa (p157)
  • Heritage Surveys at Agnew (p170)
 
10. Achievement of our diversification and growth objectives by:
  • Continuing production build-up at the South Deep project towards the target of 750,000 ounces of gold by the end of C2014

  • Completing the construction of the Athena underground operation at our St Ives mine and start production in early C2011

  • Completing the feasibility study of the Hamlet project at St Ives and aiming to start construction in early 2011

  • Completing the feasibility study and aiming to start construction of the oxide plant at the Cerro Corona mine
 

 

Capital infrastructure projects and budgets at South Deep are on-track after the first year of the five-year build-up programme to full production (p57-58).

Initial production at the Athena deposit started during C2010, and we are aiming to achieve full production in C2011 (p118).

The feasibility study for the Hamlet deposit has been completed, and we have started construction (p118).

The feasibility study for the Cerro Corona oxide plant is underway. If approved, we aim to start construction in the latter half of C2011 (p65, 119).



  Figure 1.3: Objectives for C2011
  C2011 Objectives   Progress
 
1. Achieve safe and stable production at the KDC and Beatrix mines
  We plan to achieve this by:
  • Achieving a 25% improvement in our key safety statistics and a reduction in our unplanned safety-related mine stoppages and closures
  • Increasing ore development rates to improve mining flexibility
  • Implementing a mining quality framework to improve the mine call factor and reduce dilution
  • Improving engineering and infrastructure efficiency, equipment utilisation and planned maintenance
  • Establishing a defined plan to stockpile underground reef tonnes on surface to offset business interruptions and holiday breaks
  • Placing strong focus on performance management, skills development and competency training
  • Placing continued focus on productivity improvements, technology and mechanisation
  • Reducing energy and utilities consumption
 
2. Continue the build-up at South Deep in order to achieve a production run rate of 750,000 ounces of gold by the end of C2014
  The build-up is based on an increase in long-hole stoping. Capital expenditure in C2011 is planned to amount to just over R2 billion (US$273.2 million) – in line with the operation’s five-year plan. The focus over the next four years will be on completing shaft infrastructure, plant expansion, capital development, upgrading of the South Shaft, re-supporting of all life of mine excavations and advancement of the horizontal de-stress cut (p57-58, 100).
 
3. Continue businesses re-engineering across the Group to achieve a sustainable free cash flow and an NCE margin of 20% at each mine in the shortterm and 25% in the medium-term, at long-term sustainable gold prices
  Business re-engineering is continuing at KDC, St Ives and Tarkwa. We are also entrenching owner mining at Damang and Agnew. Continued implementation of Project Blueprint in the South Africa Region is expected to deliver savings of between R500 million (US$68 million) and R1 billion (US$137 million) (details of the other business re-engineering initiatives can be found on pages 61-64 of this report.).
 
4. Maintain and increase our production profile through major near-mine projects
  Specific areas of focus include:
  • The build-up of the Athena - Hamlet complex at St Ives (p118)
  • Development and commissioning of the oxide plant at Cerro Corona (p65, 119)
  • Life extension and possible expansion of our Damang mine (pg119)
 
5. Increase our production profile through major resource development and feasibility projects
  Further advancement of our four major greenfields projects, (p116-117, 120-123) so that construction decisions can be made over the next 18 to 24 months. Specific areas of focus during C2011 include:
  • An intensive drilling programme at the Far South East gold-copper porphyry and commencement of the feasibility study
  • Completion of drilling at Chucapaca and continuation of the project feasibility study
  • Completion of the drilling programme at the Komana camp at Yanfolila, exploration of nearby areas and completion of a scoping study
  • Completion of the trial of a new proposed metallurgical process at the Arctic Platinum project to improve metal recoveries
 
6. Increase our production profile through greenfields exploration
 
  • Continued development of our exploration pipeline through the application of our US$100 million exploration budget for C2011
 
7. Implement a ‘sustainable gold’ programme that addresses both the concerns of stakeholders as well as emerging business and sustainable development risks in our future growth environment
  Specific actions envisaged as part of this effort include:
  • Piloting of the World Gold Council Responsible Gold standards relating to chain of custody and conflict free gold, including at the Rand Refinery in South Africa (p176)
  • Identification of relevant criteria for inclusion in employee ‘balanced scorecards’ and other business processes, to deliver assurance on integration into functional areas