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Gold Fields is one of the world’s largest unhedged producers of gold with attributable production of 3.6 million ounces* per annum from nine operating mines in South Africa, Ghana, Australia and Peru. Gold Fields also has an extensive growth pipeline with both greenfields and near mine exploration projects at various stages of development. Gold Fields has total attributable Mineral Reserves of 81 million ounces and Mineral Resources of 271 million ounces.
*Based on the annualised run rate for the fourth quarter of F2009

Mining charter table

Human resources development

Objective Achieved F2008 Targets F2009
Has every employee been offered the opportunity to be functionally literate and numerate by 2005 and are employees being trained? In F2008, 5,773 employees attended ABET of which 1,500 are ABET level 4 which brings the percentage of the total work force that is functionally literate and numerate from 39 per cent to 43 per cent. Although the target of 4,800 for F2009 will continue to be influenced by the objectives set in the Social and Labour Plans, changing labour, socio-economic, political and workplace realities will dictate a change in the approach to the setting of literacy and numeracy targets. A new dispensation is likely to focus on a dual strategy of literacy and numeracy provision to younger employees, and the provision of portable skills to older employees who are less inclined to literacy and numeracy learning, and who may prefer to acquire portable skills which can sustain economic activity after their formal employment with Gold Fields Limited. The detail of such a new dispensation has yet to be worked out with the social partners.
Have career paths and skills development plans been implemented for HDSA employees? Workplace Skills Plans and Annual Training Reports covering all Historically Disadvantaged South Africans (HDSA) employees and which have been ratified by organised labour representatives, are submitted individually to the MQA by the mining operations before 30 June of each year, and the company has a policy that stipulates that every employee attending ABET level 4 must have an Individual Development Plan which is aligned to the elective subjects chosen for the qualification. Continue providing a workplace skills plan and annual training report covering all HDSA employees as required by MQA as well as alignment with any new legislative requirements as they come into force.
Has the Group developed mentorship systems for empowerment groups?

An upgraded mentorship and protégé programme was launched during the year. The programme comprised training interventions to give capacity to the mentor population, and a matching of mentors to protégés to facilitate programme rollout. The programme is aligned to other elements of the Group human resource development programme, for example individual development plans, assessment frameworks, and mentorship and coaching of subordinates are performance deliverables for the management level.

All ABET practitioners are trained and placed in a pool to be chosen by learners as coaches and mentors.

Systematic extension of upgraded mentorship programme established in F2008 to the rest of the population on formal succession plans and in the HDSA talent pool.

Employment equity

Objective Achieved F2008 Targets F2009
Has the employment equity plan been published and has annual progress in meeting this plan been reported? The 2008 employment equity plan is to be submitted to the Department of Labour. The Transformation Steering Committee continues to monitor its implementation across all South African operations. The employment equity plan will continue to be revised and updated to ensure that it is in line with existing legislation. The transformation committees at operational and corporate level will continue to guide the implementation of employment equity.
Has a plan been established to achieve HDSA participation in management of 40 per cent within five years and is the plan being implemented? A plan to increase HDSA participation in management is in place and its implementation is guided by the Transformation Steering Committee. A strategy is in place to achieve 40 per cent HDSA participation in management by 2009.
Has the company identified a pool of talent and is this being fast-tracked? Representation of HDSA in management, showed a steady increase over the last year from 33 per cent to 37 per cent. Talent pool identification and fast tracking programmes will continue in supporting the next level targets in the social and labour plans.
Has a plan been devised to achieve 10 per cent participation by women by 2009 and is this plan being implemented? Current levels have improved from 2007, 3.2 per cent to 5.7 per cent with the inclusion of South Deep. A strategy is in place and continues to aspire to the mining charter target for 2009. The mining operations, who are individual holders of mining rights, are also continuing with dedicated efforts and strategies to achieve their respective targets of 5 per cent by 2009 as well as the 10 per cent Social and Labour Plan commitments by 2016. These targets were negotiated and agreed with the regulator. The Group is on track to meet the 2009 commitment of 5 per cent.

Migrant and foreign labour

Objective Achieved F2008 Targets F2009
Has the Group subscribed to government and industry agreements to ensure non-discrimination against foreign migrant labour? Group policy remains not to discriminate against foreign/migrant labour but to recruit locally where possible. Increase of local labour portion of South African workforce.

Mine community and development

Objective Achieved F2008 Targets F2009
Has the Group co-operated in the formulation of integrated development plans and is it co-operating with government in implementing these plans in communities where mining takes place and in labour sending areas? The Gold Fields Foundation budgeted as per established formula for allocation to four key categories: Education, Community Development, Environment and Health. The allocated budget was R15 million. Maintain capacity to develop projects through multi-stakeholder consultation and align them with the integrated development plans of the relevant communities.
Has the Group engaged with local mining communities and those in labour sending areas?

There has been ongoing engagement with public and private sector stakeholders for both our mine host communities and labour source communities.

All approved social and labour plans are being implemented at the operations in consultation with the appropriate stakeholders.

Gold Fields will maintain ongoing engagement with public and private sector stakeholders for its communities and labour source communities. This engagement will be in accordance with the AA 1000 standard.

The contributions of the Gold Fields Foundation to the communities and labour source communities will be maintained according to the formula. However, actual funding will depend on project sustainability.

Housing and living conditions

Objective Achieved F2008 Targets F2009
Regarding Group-provided housing, has the mine, in consultation with stakeholders, established measures for improving housing, including the upgrading of hostels to family units and promotion of home ownership options among employees?

The Group has commenced with the construction of 292 houses for family accommodation in the West Wits region.

The programme to upgrade hostels continued and 508 rooms were completed during F2008.

Involvement of organised labour and other key stakeholders has been fundamental to the above success.

The construction of the 292 houses is aimed for completion by November 2008.

There are 299 hostel rooms ring fenced as a separate project due for completion by end of December 2008 as part of the 508 completed rooms to meet F2008 target of 807 upgraded rooms.

For F2009 the target for hostels upgrade is 1 001 rooms.

Have measures been established to improve the nutrition of mine employees? What has been done to improve nutrition?

There has been an improvement of nutrition in 2008 by setting up a separate Food & Beverage Department that is independent from the accommodation. Specialists have been employed and have brought about a number of changes with the support of a dietician for quality assurance.

There will be intensive training and development of the cooks to improve the serving, food preparation methods and to eliminate wastage.

Menus will be standardised. Buying and food preparation and batching will be centralised.

Procurement

Objective Achieved F2008 Targets F2009
Have current levels of procurement from HDSA companies in terms of capital goods, consumables and services been identified? By the end of F2008, HDSA spend accounted for R1.8 billion, 40 per cent of total working cost and capital materials spend. This includes South Deep where no Social and Labour Plan targets are set as yet. South Deep is a trackless mine and majority of spend is with foreign countries. If South Deep is excluded, our spend is at 44 per cent. We have exceeded our Mining Charter target of having more than 40 per cent of our working cost and capital materials spend provided by accredited HDSA suppliers Achieve a more than 40 per cent HDSA procurement spend by 2009. Although targets have been exceeded, we will be pushing the limit to 45 per cent as an internal target. We will be focusing on SME development and will be offering more advanced courses for learners that have attended the basic training courses.
Has a commitment been made to a progression of procurement from HDSA companies over a three to five year time frame in terms of capital goods, consumables and services and to what extent has this been implemented? The spend has increased to 40 per cent which is above target, up from 9.7 per cent in 2003, on the back of steadily increasing procurement spend in real terms. Maintain and improve the HDSA procurement spend for 2009. HDSA supplier screening and accreditation systems to remain in place to ensure accuracy of vendor information. There will be a major drive to achieve Social and Labour Plan targets and improve on them for 2009. The challenges for 2009 will be to improve South Deep HDSA spend.

Ownership and joint ventures

Objective Achieved F2008 Targets F2009
What is being done to ensure the Group achieves 15 per cent HDSA participation in terms of ownership of equity or attributable units of production by 2009 and 26 per cent by 2014? Gold Fields complied with the 2009 target by completing a transaction with Mvelaphanda Resources Limited, effective 1 May 2004, in terms of which Mvelaphanda Resources, through its wholly-owned subsidiary, Mvela, will acquire a 15 per cent interest in Gold Fields’ South African gold mining assets within five years for a cash consideration of R4.1 billion. On 17 March 2008 Gold Fields Limited and Mvelaphanda Resources Limited agreed that Mvela would receive a fixed 50 million Gold Fields shares if and when Mvela’s future stake of 15 per cent in Gold Fields South African mining assets would be exchanged at the instance of either party, for shares in Gold Fields Limited. Plan for 2014 target through various initiatives.

Beneficiation

Objective Achieved F2008 Targets F2009
Has the current level of beneficiation been identified? Gold Fields, together with AngloGold Ashanti, SARB and Standard Bank, operates a gold advance scheme in order to facilitate the provision of secured and cost effective advances of gold to the South African jewellery manufacturing industry. Continue to support the Gold Advance Scheme.
Has the baseline level of beneficiation been identified and has the company noted the extent by which this will have to increase to qualify for an offset? The scheme mentioned above involves facilitating advances of gold by advancing collateral support in the form of guarantees. A Beneficiation Act has not yet been promulgated. Gold Fields continues to engage the Department of Minerals and Energy to determine the criteria to qualify for an offset. Growth in this sector can only be achieved through additional development of the South African jewellery design and manufacturing industry and the development of additional industrial applications for gold.

Reporting

Objective Achieved F2008 Targets F2009
Does the company report annually on progress made in meeting its commitments? As part of our annual report we report on progress made in terms of the guidelines set out by the Mining Charter Scorecard and using the evolving Global Reporting Initiative guidelines in the compilation of our report. To continue to report in accordance with the established format.