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| 1. |
Improve safety indicators by 25% in the South Africa
Region and 20% in the international regions |
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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).
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| 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 |
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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). |
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| 3. |
Achieve an NCE margin of 20% in the 12 months to
end-December 2010 |
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During C2010, our NCE margin improved from 9% in the March quarter to 20%
in the December quarter. |
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| 4. |
Strengthen the regional organisational structure,
including appropriate operational, financial and
human resourcing |
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All regional organisational and management structures are in place with the
majority of positions filled. |
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| 5. |
Improved flexibility at our long-life shafts at
KDC and Beatrix, through increased Mineral
Reserve development |
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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. |
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| 6. |
Development of energy management strategies and
energy savings of 5% of electricity consumption in
the South Africa Region by the end of C2010 |
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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. |
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| 7. |
Implementation of competitive recruitment and
retention strategies/practices to ensure the Group
has an adequate supply of critical skills |
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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
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| 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 |
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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
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| 9. |
Further advancement of positive and mutually
beneficial relationships between Gold Fields and
its stakeholders |
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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)
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| 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
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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).
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| 1. |
Achieve safe and stable production at the KDC and
Beatrix mines |
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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
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| 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 |
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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). |
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| 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 |
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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.). |
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| 4. |
Maintain and increase our production profile
through major near-mine projects |
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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)
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| 5. |
Increase our production profile through major
resource development and feasibility projects |
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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
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| 6. |
Increase our production profile through
greenfields exploration |
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- Continued development of our exploration pipeline through the application of our US$100 million exploration budget for C2011
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| 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 |
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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
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