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AFRIcA DoWn UnDeR

Numbers keep rising for Gold Fields

old Fields Ltd is set to hit group
Gguidance for 2020 after posting a Gold Fields September Quarterly Production
7% increase on year-on-year gold pro-
duction in the September quarter. Region Production AISC
Gold Fields produced 557,000oz at Australia 250,000oz $A1,363/oz
$US1,070/oz AISC for the quarter, a Ghana 211,000oz $US1,030/oz
1% increase on the June quarter after
the company was able to return COV- South Africa 65,000oz $A1,055/oz
ID-restricted employees to operations Peru 51,000oz AuEq $US953/oz
in South Africa and Peru. Total 557,000oz $US1,070/oz
Speaking on the company’s quarterly
results call, chief executive Nick Hol-
land said the company’s only remain- “We are not necessarily behind in ny’s economic impact on Ghana.
ing South African asset, South Deep, South Africa but some of the OEMs “Tarkwa is the flagship asset within
had welcomed back 95% of its work- have not released their prototypes in the Gold Fields Group,” Baku said. “Our
force during the quarter after a strin- South Africa yet,” he said. “Battery- success story since 2012 has been to
gent lockdown in the country. powered underground vehicles for in- get 56 expat positions localised. We
“The impact at South Deep was stance will be available in the next 18 now have 13 expats; seven at Tarkwa,
not actually that severe, we have not months. We know what’s out there and four at Damang and two at Galiano.”
missed out on production,” Holland we have a clear roadmap in place for The Ghanaian Government is be-
said. it.” lieved to be considering increasing
South Deep has been Gold Fields’ The biggest technological advance localisation rates to 96% of the work-
most difficult asset over the last dec- at South Deep, according to Holland, force, but Baku is confident Gold Fields
ade as production guidance and devel- will be the introduction of renewable is already able to exceed requirements.
opment rates were consistently missed energy. Gold Fields has widely adopt- “Our average is 2.6% expats current-
in the deep-level (plus-3,000m) mine ed renewable energy on its Australian ly,” he said.
which was originally touted to produce operations, resulting in significant cost Baku put Gold Fields’ localisation
500,000 ozpa. savings. It is now preparing to roll out success down to its overarching ap-
However, the return of workers in similar programmes across its African proach to the strategy.
the September quarter coincided with portfolio. “There is support right from the top,”
the asset’s best recent performance South Africa has long been blighted he said. “There is confidence in nation-
with 65,000oz produced at $US1,055/ by energy issues, but Holland sees the als because Tarkwa has 100% local
oz AISC. Holland said he expected the introduction of renewables at South management and the executive vice
improvement at South Deep to be sus- Deep as a potential saviour. president role has been local since
tained. “Renewables will reduce our reliance 2014. That gives us confidence in Gha-
“South Deep’s costs have come on Eskom, bring down costs and re- naian talent.”
down a lot and South Deep is making duce security risk on energy,” he said. Baku also lauded the Ghanaian edu-
some good cash,” he said. “We are in a Gold Fields steadily withdrew from cation system, which provided Gold
really good position to achieve the re- South Africa last decade as the country Fields with a pipeline of talent but said
vised guidance for the year and we are fell from its place at the top of African the country still struggled with techni-
well set up for 2021.” gold production, but it has reinforced cal roles.
Asked about the introduction of auto- its standing in the continent’s new pre- “One area where we are weak is the
mation and mechanisation in the mine, mier gold producer, Ghana. technical side,” he said. “We have low
Holland said Gold Fields was pushing The company’s Tarkwa, Damang and emphasis on technical training, but
hard to implement new technology. Galiano Gold JV (50/50) operations we are seeing how we can navigate
“There are a number of projects we account for 37% of group production, through that challenge. We have a uni-
are looking at, the most important being delivering 211,000oz @ $US1,030/oz versity of mines next to Tarkwa who we
the control room where we are getting AISC in the September quarter. do a lot of collaboration with.”
more real-time information,” he said. The region’s flagship operation is The other challenge is in retaining
“We are trialling remote loaders con- Tarkwa where four open pit mines sup- staff as they reach senior roles with
trolled from surface and now have im- ply a 13.5 mtpa plant which produced many Ghanaians choosing to head
pact breakers operating underground 127,300oz in the quarter. abroad.
controlled remotely from surface. Speaking virtually at Africa Down “Once they are ready to take over
“We are also looking at putting sen- Under, Gold Fields executive vice pres- expat roles you see them landing jobs
sors on all equipment.” ident West Africa, Alfred Baku, said the outside of Ghana,” Baku said.
The take-up of automated technol- mine’s flagship status was about more – Dominic Piper
ogy has been slower in South Africa than simply production figures.
than other mining jurisdictions but Hol- Baku pointed to Gold Fields’ ability to
land said the situation would change in fill senior roles in the region with local
the coming year. talent as a key indicator of the compa-

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