Stakeholders

1. Community development spend

*Excluding soccer sponsorship of US$1,3 million.

2. Social and Labour Plan

Social and Labour Plans (SLPs) were submitted for Beatrix, Kloof and Driefontein mines in October 2006. The respective SLPs were approved as part of the successful conversion of each operation’s mining right in January 2007.

At the end of March 2008, Implementation Plans were submitted as required and a concurrent internal review process was initiated. The review highlighted areas that presented a challenge in terms of targets as well as the influence of specific external factors. Challenges that were highlighted included issues related to human resources development and local economic development. Other factors that were identified as having a negative impact on the successful achievement of the set targets included the electricity crisis, increases in operational costs due to inflation and several safety related operational decisions. This prompted Gold Fields to request an opportunity to re-submit revised Implementation Plans. The DME made this allowance and the revised Implementation Plans will be submitted by the end of August 2008.

Measurement of each operation‘s actual performance against the various plans has been initiated. All results will be verified by an external verification body to provide the necessary assurance that the data is reliable. This will culminate in an annual status report for each operation that will be submitted by the end of November 2008 and will depict the performance of each of the operations against the targets included in the original SLP. The process has proven to be a learning experience upon which future improvements will be based. South Deep’s SLP will be completed before the end of 2008 and will be submitted as part of its mining rights conversion application.

3. Community investment and local economic development

Agrihold has been developed by Gold Fields Limited as an autonomous investment holding company (100 per cent owned by Gold Fields Limited) to pursue the delivery of agricultural local economic development. This entity is responsible for the development, implementation and support of new agribusiness. The entity also conducts ongoing research and development for sustainable enterprise development in labour sending areas in South Africa. Through extensive global research, Agrihold has identified three strategic areas, where South Africa has proven strategic advantages and has significant potential for the employment and training of large numbers of people. These areas are floriculture, bioprospecting and aquaculture. The key criterion for any business under consideration includes the potential to be globally competitive and that large numbers of people can be employed in a short period of time.

In terms of floriculture, the well known Living Gold facility is a rose propagation and growing facility located on the West Rand in South Africa. This business has trained over 650 people in the skills of growing, harvesting, sorting and packaging world class quality roses for export. By the beginning of this financial year, the facility had already produced in excess of 60 million roses, half of which had been exported to destinations around the globe. The business is accredited by Global Gap and as a result is audited for performance in terms of not only rose production but also performance with regard to environmental and social issues. Numerous opportunities for the expansion of this business are being evaluated, including an initiative called “Planet Flowers”. This initiative will concentrate on the procurement of locally produced flowers for the production of bouquets, arrangements and various other value-added products for sale nationally and internationally.

On the bioprospecting front, any biological resource emanating from a country’s biodiversity for potential commercial use in pharmaceutical, herbal, agricultural, industrial or chemical products, is pursued. Such a business approach has the inherent benefit of promoting the conservation of national biodiversity. Our investment into this initiative is through the Golden Oils company and we are of the firm belief that the field of bioprospecting will represent a “sunrise” sector into the future. The first investment of Golden Oils has been the development of a growing and screening facility near our Beatrix mine in the Free State in South Africa. At this facility numerous plants are tested for their performance in terms of growth and their respective yields and quality. Species being tested include aloes, succulents, bulbs, essential oil producing plants and plants which have proven medicinal properties. Through this initiative, a company called AloeCo has been developed to facilitate investment into the Eastern Cape in the aloe sector and feasibility studies with respect to investment in the aloe sector are being finalised.

With regard to aquaculture, feasibility studies are underway as to the large scale production of trout in the Highlands of Lesotho and this is seen as having the potential for being a catalyst for a large scale aquaculture industry being established at the Lesotho Highlands Water Scheme starting with the Katse Dam. The feasibility study includes the production of various products such as smoked fillets, pâtés, terrines and the like, as well as tackling the logistical issues and access to international markets.

Through our involvement with Agrihold, Gold Fields Limited has emerged as a leader in the field of sustainable enterprise development with the southern African programmes forming the Agrihold blueprint for operations around the globe.

In addition to the above initiatives, we are also very active in our labour sending communities in South Africa which are often many hundreds of kilometres away from our operations but are home to many of our employees. Our activities in these areas are again very much agricultural in nature and very similar to the approach adopted in Ghana whereby our aim is to provide the necessary support to enable agricultural sustainability in the area through:

• The provision of agricultural expertise and skills development;
• The provision of livestock to beneficiaries of the programme;
• The provision of seed for crop cultivation to beneficiaries of the programme; and
• The provision of supporting infrastructure.

Using a mentorship type structure, possibly one of the greatest yet intangible benefits of these initiatives is the valuable transfer of skills and the ongoing support that is provided. The reach of these programmes is considerable, aiming to benefit many thousands of community members.

In Ghana, our SEED (Sustainable Community Empowerment and Economic Development, the intentions of which were covered in our previous annual report) programme continues to yield very positive results. Over 3,000 members of the local community have benefited directly from the SEED programme with an estimated reach to at least 15,000 people. During the year, more than 17,000 oil palm seedlings had been distributed. The processing of oil palm has been facilitated by the provision of numerous oil palm processing facilities. The facilities have been provided with secure access to maintenance services to ensure that the facilities continue to produce the desired product. Some of the facilities in this venture are recording processing rates of up to five tons of oil palm fruits during a quarter. Based on these successes, we had undertaken a feasibility study of a large scale oil palm project (thousands of hectares in extent). However the land assembly has proven to be problematic and therefore we are exploring alternative options.

Under the SEED programme the livestock programmes are proving to be very successful where some of our beneficiaries are now moving away from being dependent on the SEED programme and are becoming self sufficient through purchasing feed from the local markets which provides further economic stimulation in the local market. Our aquaculture initiatives have also shown huge success where one of the fish farms that was initiated through our SEED programme has evolved to become one of the most productive in the country.

In Ghana, forty per cent of our budget for community investment was directed to alternative livelihoods. Thirty four per cent of the budget was directed into education, ten per cent to health, ten per cent to water and sanitation and the remaining six per cent was directed towards other infrastructure.

The lessons we have learnt in agricultural led local economic development have stood us in good stead even at the top of the Andes Mountains in Peru at our Cerro Corona project. Some noteworthy examples include the increase of dairy yield through establishing grazing pastures as well as increasing natality rates through artificial insemination of dairy cattle. Investments in assisting communities with pig farming have also proven to be very successful. We are also extending our experience to feasibility studies on various enterprises including blueberry farming, to which the area and climatic conditions are conducive. We also had the pleasure of opening the school in the Tingo community during the year. The success of this initiative lies in the approach by which local community members constructed the school, imparting critical skills development. A large delegation was present at the opening, including local politicians and regulators. We also focus on direct employment for community members at the mine and in this regard we have been successful in training locals in plant operation and these members will form part of the workforce responsible for producing the concentrate out of the plan. Transport contractors were also procured locally.

In Australia, the Community Endeavour Team (responsible for social investment) is more focused on community cohesion and pride initiatives such as the Red Hill walking trail (a conservation based effort), investing in recreational facilities, the upgrade of the local airport and promoting tourism access and interest to the areas in which we operate.

A fundamental component of the Gold Fields Limited strategy is that of growth and as mentioned in other sections of the annual report, we are actively pursuing the addition of ounces to our production profile. Four per cent of the exploration budget is assigned to investment in the local communities and our initiatives in this regard are tailored to the level of interest that can be assigned to a particular area. Examples of our investment initiatives take the form of improvements in educational facilities to improvements in medical facilities to providing access to clean water to also facilitating agriculture in the area to create sustainable employment. By adopting a continuity of approach in the communities in which we operate, we can capitalise on the benefit of lessons learnt and cross pollination across the globe.

4. Socio-economic impact assessments in Australia

At our Australian operations we have undertaken socio-economic assessments through an independent party. These assessments serve to:

• Provide an up to date assessment of impacts (be they positive or negative) on our stakeholders and communities;
• Identify areas for further social improvement;
• Measure the effectiveness of existing community and impact minimisation strategies;
• Investigate indigenous community perceptions;
• Identify issues that may impact during the Life of Mine and eventual closure; and
• Consult and engage with a large range of stakeholders.

The outputs of these studies serve to detail opportunities for improvement. Notwithstanding these studies, we continue to strengthen our approaches to land access with regard to indigenous communities and have developed databases to support this process. During the year we have procured the services of expert archaeologists to further our understanding of the heritage surveys and as a result our database has expanded quite significantly. All near site exploration is subject to a process of applying for a site disturbance and any sites of heritage importance are avoided. This is most useful as the heritage information is also integrated with other information such as areas of biodiversity significance or areas that hold significant landforms and appreciably enhances our ability to undertake on and near site exploration while minimising adverse impacts.

5. Awards

At a ceremony in Takoradi in December 2007, we received an award for corporate social responsibility in the western region of Ghana from the Regional Chamber of Commerce and Industry. This awards scheme is in its first year and serves to recognise companies that have excelled in their social responsibility and to stimulate healthy competition amongst corporations. At the ceremony, representatives of Gold Fields Limited were presented with a shield and certificate recognising outstanding contributions in providing water, health, education and other social facilities that seek to enhance the lives of people.

Gold Fields also recently received an award from the Education Department at Rhodes University for its contribution to environmental education in South and southern Africa. Gold Fields has a long standing relationship with Rhodes University that developed more than a decade ago mainly due to Gold Fields’ commitment to the Eastern Cape, which is one of its labour sending areas. It was through the resultant interaction that the “Rhodes University Certificate in Environmental Education”, which is often referred to as the “Gold Fields” certificate, was born. This certificate is offered as a semi-distance course, which is run over a year. The course has also been franchised out to other educational institutions within southern Africa and targets the needs of students, teachers, community workers, conservationists, political activists and non-formal educators. Gold Fields continues to support Rhodes University and recognises this fine institution as being a key role-player in sculpting the future of South Africa.

6. Artisanal and small scale mining involvement

During the year we had experienced some problems with artisanal miners moving onto the Damang concession in Ghana and mining in areas that had been earmarked for possible future development. Through consultation with the relevant regulatory authorities, communities and the artisanal miners, a peaceful eviction was concluded without any incident. Unfortunately, in April of this financial year, artisanal miners again invaded the site. This is of concern to us due to the following impacts:

• Threat to the safety and security of mine personnel, community members and the artisanal miners themselves;
• Potential for pollution in the area;
• A threat to the life of the Damang mine;
• A threat to the possibility of the company being able to re-open the old Abosso underground section; and
• Reduction in funds contributed to the community investment foundation.

The situation has been discussed with the community members and we have received very encouraging, sustained support with the community themselves appealing to the regulators to address the situation. Numerous site visits were held and we remain committed to finding a solution to the issue in engagement with all relevant stakeholders.

On a much greater scale, we are internationally involved through the International Council on Mining and Metals in developing approaches and solutions to artisanal and illegal mining. To this end, a representative of our company chairs the working group of the ICMM on artisanal mining and the Group is actively working on developing positions and approaches to artisanal mining.