Page 64 - pd294-June21-mag-web_Neat

ReGIonAL RoUnD-UP AFRIcA

Gold Fields

commits

to African

Gold Fields will spend $US43 million on
introducing the Huni open pit into its
investment 300,000 ozpa Damang operation, Ghana

old Fields Ltd’s backing of its African The solar plant is expected to be com- The second project approved was de-
Gportfolio has been reinforced with the missioned during Q2 2022. Griffith said velopment of the Huni pit at the Damang
Johannesburg-listed miner committing to South Deep would be the first mine to gold mine in Ghana.
more than $US90 million of capital pro- operate a solar plant of such scale in a Coming at a cost of $US43 million –
grammes at either end of the continent. country renowned for its energy prob- with $US15 million to be spent in 2021
In its home country, the company has lems. – Huni will add incremental production to
given the green light for the construction “This will ensure greater reliability of the project and provide flexibility on the
of a 40MW solar plant at the South Deep power supply and reduce the cost of mining front at the 300,000 ozpa Damang
mine. electricity, which currently makes up operation, according to Gold Fields.
Gold Fields said the solar plant would about 13% of the mine’s operating costs,” Both the South Deep solar project and
generate more than 20% of the average he said. “Importantly, it will reduce our Huni open pit development will require
electricity consumption of the mine. It will carbon footprint by around 100,000 tpa additional capex to the $US1.7 billion
comprise 116,000 solar panels and cover of CO2 not only enhancing the sustaina- Gold Fields has already committed to in
a 118ha area roughly the size of 200 soc- bility of South Deep but also contributing 2021.
cer fields and will be on mine licence. to Gold Fields’ long-term commitment to Much of that spending will be dedi-
The company will spend R660 million carbon neutrality.” cated to the Salares Norte gold project
($59 million), including contingencies During 2020, Gold Fields success- in Chile, where construction started in
and escalation on the project. The use of fully implemented solar and wind power January.
self-generated, renewable energy is ex- plants, backed by battery storage, at two Development of the $US860 million,
pected to translate into savings of around of its Australian mines, Agnew and Gran- high altitude (3,900-4,700m) project is
R120 million ($10 million) on the cost of ny Smith, and committed to renewables scheduled for completion in late 2022,
electricity a year. It will be funded by pos- at its other Australian mines, Gruyere with first gold production in early 2023.
itive cash flow from the much-troubled and St Ives, as well as the Salares Norte Once commissioned, the mine will pro-
South Deep operation. project in Chile when it starts operations cess 2 mtpa.
Despite the second wave of COVID-19 in 2023. Salares Norte is the latest in a series
affecting South Africa during the report- Once the South Deep project is com- of investments made by Gold Fields over
ing period, Gold Fields enjoyed a rela- missioned, around 11% of the group’s the last five years as it strives to maintain
tively solid March quarter at the deep- electricity will come from renewables. and expand production beyond 2 mo-
level mine, producing 60,000oz gold at The company expects 240 jobs to be zpa. As well as Chile. Group production
AISC of $US1,388/oz. created during the construction phase, for the March quarter was 541,000oz @
Newly installed chief executive Chris highlighting the benefit for the wider AISC of $US1,078/oz.
Griffith said despite being lower year- community of South Deep’s continued “The reinvestment programme over
on-year, he was pleased with the perfor- operation. the past four years has placed Gold
mance. “A profitable mine and a sustainable Fields in a position where it can maintain
“Encouragingly, productivity trends business can continue to employ and de- and even grow its production profile over
continued to improve across key leading velop employees, contribute to commu- the next decade,” Griffin, newly installed
indicators during the quarter, with stop- nity development, support the livelihoods after replacing the retired Nick Holland,
ing productivity being the focus area for of local suppliers and add to the fiscus in said.
improvement over the remainder of the the form of taxes and royalties,” Griffith
year,” he said. said.

Page 64 JUNe 2021 aUSTRaLIa’S PaYDIRT