Overview of the South Deep Project 05 June 2013
Forward looking statements Certain statements in this document constitute “ forward looking statements ” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Far Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and production costs; levels of expected production; Gold Fields ’ growth pipeline; levels and expected benefits of current and planned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other occupational health risks experienced by Gold Fields ’ employees. These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. South Deep Investors Visit, 5 June 2013 KM Page 2
Our Vision and Values South Deep Investors Visit, 5 June 2013 KM Page 3
Locality – Witwatersrand Gold Fields South Deep JOHANNESBURG Scale 0 100KM EVANDER POTCHEFSTROOM KLERKSDORP GREYLINGSTAD VREDEFORT KROONSTAD WELKOM LEGEND Central Rand Group West Rand Group � Historic production: > 1 600 000 000 oz of gold � 4.5bn tons of ore treated at an average grade of 9.0g/t South Deep Investors Visit, 5 June 2013 KM Page 4
Locality – South Deep Gold One Sibanye Gold Blyvooruitsicht Sibanye Gold REFERENCE Roads Farm Boundaries Kusasalethu Mine Boundaries Towns GOLDFIELDS GOLD MINES SIBANYE GOLD MINES DURBAN ROODEPOORT DEEP HARMONY ANGLO GOLD ASHANTI GOLD ONE South Deep Investors Visit, 5 June 2013 KM Page 5
Safety LDIFR FIFR 25 1.2 21.29 0.93 20 0.8 15 10 0.4 5.78 5 2.8 0.13 2.4 0.12 2.3 1.9 1.62 0.07 0.06 0 0 0 0 F2008 F2009 F2010 F2011 C2011 C2012 C2013 F2008 F2009 F2010 F2011 C2011 C2012 C2013 SIFR 8 6.66 6 4 2.11 2 1.1 1.09 0.98 0.94 0.84 0 F2008 F2009 F2010 F2011 C2011 C2012 C2013 • 6 054 047 FOG fatal free shifts – April 2013 • OHSAS 18001 Compliant IF WE CANNOT MINE SAFELY, WE WILL NOT MINE South Deep Investors Visit, 5 June 2013 KM Page 6
History • 1950: Prospecting in the area commenced • 1961: Production at Western Areas Gold Mine (WAGM) commenced • 1999: Placer Dome Western Areas (PDWA) Joint Venture (JV) formed • 2000: Name changed to South Deep Gold Mine • 2005: Twin Shaft Complex opened • 2006 Gold Fields acquired Barrick’s 50% JV interest in the PDWA JV • 2007: Gold Fields acquired all remaining WAL shares to own 100% of South Deep Gold Mine WAL listing terminated • 2007: Retired inherited 1,000,000 ounce hedge at US$622/ounce at cost of US$ 300 million – savings to date US$ 1 Billion South Deep Investors Visit, 5 June 2013 KM Page 7
Overview – building a world class mine Capital Projects Progress Landmark Union Agreement on new Operating Model – 2 October 2012 � Full production of circa 700koz in 2016 � De-stress development increased 75% in 2012 � Key Infrastructure Projects Completed : On Budget and On Time 2010 2011 2012 2013E 2014E 2015E Status 94 Level Refrigeration Plant Phase1 commissioned On schedule Commission machines 3, 4 and 5 with 100 and 105 Level BACs Commissioned Twin Vent Shaft Deepening Hoisting builds up as per mine plan Oct 2012 Commissioned Tailings Storage Facility April 2011 Commissioned Plant Expansion 330 Ktpm Nov 2012 Backfill Infrastructure Backfill pipe extensions in the 95-1W, 95-2W and 95-3W Commissioned New Mine Development On-going Transition To Build-up Underway South Deep Investors Visit, 5 June 2013 KM Page 8
New Operating Model Multi-phased approach to support South Deep ramp-up 1 Vision: Phase 1: CHANGE Phase 2: OPTIMISE Phase 3: IMPROVE 1 Future operating model General business 6 union engagement initiatives on e ves initiatives processes 1.1 2.1 Capital Infrastructure O ORG UNIT DESIGN A 1.2 FULCO 2.2 S SHIFTS, SHAFTS, LOGISTICS O Op Operating Infrastructure 3.1 B Business Improvement 1.3 Total rewards Six Sigma; Lean; Theory of Constraints (TOC) 2.3 PAYROLL P Mi Mining Optimisation M C 3.2 Partnerships for success 1.4 Job grading 2.4 B BONUS M Ma Maintenance Optimisation 3.3 D Continuous skills development Maintenance 1.5 management 2.5 RECRUITING AND TRAINING R Bu Business Optimisation Bu E Fle Flexibility in mining Fl n ng 1.6 M M MAINTENANCE MANAGEMENT F 1.7 Re Reb Rebase agreements n nt MINING FLEXIBILITY M M 1.8 C CHANGE OFFICE SETUP 1B Hearts and Minds Culture Change 1A Leadership Pipeline and Capacity Horizon 1 Horizon 3 Horizon 2 Rebasing the mine Deliver the ramp-up Setup for success Dec 2015 Jan 2013 Jan 2014 July 2012 …transitioning into a longer term BI FUNCTION Phase 1 & 2 overseen by the Change Office… South Deep Investors Visit, 5 June 2013 DW Page 9
New Operating Model: Implementation complete Detailed design work October November December Quarter 1 2013 Agreement on Working 0 Calendar Finalise fleet & labour 1 1 2 3 plan numbers Assigning gangs to 25 th 17 th cage schedule Shift Arrangement Oct Nov Mapping of operators to 2 Training New shift arrangement gangs & shift pattern (~3 weeks) implemented 2 3 4 Prepare training Sign-off on the new Implement 4x4 materials 3 21 st November shaft schedule 1 2 3 Agree on training Update Maxxess 4 Procure, fit and test infrastructure program & FM provider Christmas Break 22 nd to 2 nd 1 2 5 Sign-off on System build 5 January (Mineware / with interim solution) bonus design Bonus First NEW 5 Data input finalised pay-out and collected 15 December First month First NEW under new Phase 1 Bonus pay-out 1 Short-term 15 January planning by 2 Bonus implemented First month machine under new Phase 2 Bonus 21 October 1 Recruiting and up skilling Recruit 2 Recruiting kick-off 08 October First new employees on-site Lump-sum Payment payment lists South Deep Investors Visit, 5 June 2013 DW Page 10
New Operating Model Key increases in resources Embedding of the New • Operating Model’s key elements 12-hour 4x4 shift system is � operational and embedded Siya Phambili bonus system is � implemented and fully functional Recruitment and training of the • increased labour requirements 251 of 267 new positions filled � in Q1, plus extra 90 for attrition Q2 requires additional 63 � positions South Deep Investors Visit, 5 June 2013 DW Page 11
Our People • Employ approximately 3,500 people on operation – full production will employ 5,000 people • Diverse workforce • Well trained and qualified personnel • Well paid and incentivised personnel • World class medical facilities • Wellness programme − “ 24 hours in the life of a miner” • Unionised labour force − 72% NUM, 15% UASA and 14% non-affiliated South Deep Investors Visit, 5 June 2013 KM Page 12
Our People Accommodation Strategy • Phasing out of the Hostel system Phase 1 of the Hostel Upgrades Emoyeni • There are currently 159 rooms to be completed by July 2013 • Each unit will accommodate two people, and consists of a shower , TV room, Toilet and a shared Emoyeni Hostel outside view kitchen • One person per bedroom • Phase 2 will start shortly after Phase 1 and will convert another 212 rooms • Conversion of 123 at Enduleni Residence into family units has also been completed South Deep Investors Visit, 5 June 2013 KM Page 13
Recommend
More recommend
