GFI 201405290025A
Media release - Update on Recent Fatalities at South Deep and Outcome of Safety Review
Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
(“Gold Fields” or “the Company”)
JSE, NYSE, DIFX Share Code: GFI
ISIN Code: ZAE000018123
Media release - Update on Recent Fatalities at South Deep
and Outcome of Safety Review
Johannesburg, 29 May 2014: Gold Fields Limited (Gold
Fields) (JSE, NYSE, NASDAQ Dubai: GFI) hereby advises that,
further to the announcement issued on Tuesday, 27 May 2014,
regarding the two recent fatal accidents at South Deep in
South Africa, the Department of Mineral Resources (DMR) on
Tuesday evening completed an in-loco inspection of the
scene of the second accident on the mine.
Following the inspection the DMR issued a Section 54 order,
placing a moratorium on all workshop-related activities
across the mine, pending the completion of a report back to
the DMR in terms of Section 11(5) of the Mines Health and
Safety Act. This has effectively stopped all production on
the mine.
Management is working closely with the DMR to identify and
mitigate the causes of the accidents and to ultimately have
the Section 54 order lifted.
It is estimated that, as a consequence of the Section 54
imposed on the mine due to the two fatal accidents, there
will be a deferral of approximately 300 kilograms (9,645
ounces) of gold production by the end of this week. It is
estimated that a further 200 kilograms (6,430 ounces) will
be deferred due to the reassessing of working practices in
all workshops and safety control systems on the mechanised
mining fleet, in order to improve safety at South Deep.
The new management team, appointed at the beginning of this
year, has concluded a comprehensive review of all safety
protocols, procedures and standards across the mine. This
is in line with the team’s mandate to improve the
mechanised mining culture on the mine, with specific
emphasis on introducing international best practice
standards on equipment availability and utilisation as well
as the mechanised mining skills of employees.
The safety review has indicated that approximately 1,000
meters of legacy ground support in some of the ramps
serving production areas in the older part of the mine, are
below the international best practice standards at our
international mines and present a safety risk. At this
stage of the build-up process, approximately 70% of the
mine’s production comes from these older areas of the mine
above 95-level.
Nick Holland, CEO of Gold Fields, said: “After personally
inspecting the affected areas, and after consultations with
the new mine management team as well as the Gold Fields
Board, I have concluded that it would be unsafe to continue
working in these areas without remediation. As a
consequence it has been decided to immediately stop
production and destress activities in these areas and to
start with remedial work.”
“A safe working environment on all of our mines is our
first priority and, in line with our first value – ‘If we
cannot mine safely we will not mine’ - this was the right
decision to make. We are now paying the price for the
skills deficit at South Deep, which contributed to this
outcome. In addressing these issues we will not only ensure
the safety of our people, but also the long-term integrity
and sustainability of the mine,” he added.
The remediation will take approximately four months to
complete (June to September). The impact on production for
this year is expected to be a deferral of approximately
1,500 kilograms (48,225 ounces).
Despite the production declines at South Deep, the Group’s
production guidance of 2.2 million attributable ounces for
2014 is maintained, based on the current and anticipated
outperformance of Cerro Corona, Granny Smith and Tarkwa
relative to guidance.
At this stage it is not expected that the stoppages will
require a re-assessment of South Deep’s build-up plan to
full production of between 650,000 ounces and 700,000
ounces per year by the end of 2017, as previously advised.
“However, we cannot at this point in time guarantee that
there will not be other issues identified by the new
management team, which may further impact guidance for the
year,” said Holland.
He added: “Central to the new management team’s efforts to
rebase the mine, is the need for the introduction and
enforcement of greater levels of accountability and
responsibility at all levels in the organisation and to
improve skills levels across the board. In addition, the
team has concluded that the mine has more equipment and
people than is required. Both of these are prerequisites
for an improved safety culture and improved productivity,
which are deemed critical to de-risk the mine’s build-up to
full production and ensure that South Deep achieves its
full potential. Discussions have commenced with the trade
unions to agree on the way forward on these issues.”
CONFERENCE CALL
A telephone conference call has been scheduled at the times
indicated below:
Johannesburg: 16:00 hours
For United Kingdom: 15:00 hours (GMT)
For North America: 10:00 hours, (EST)
DIAL IN NUMBERS
Country Toll Number Toll-free Number
Australia 1 800 350 100
South Africa 011 535 3600 0 800 200 648
United Kingdom 0 808 162 4061
USA & Canada 1 855 481 5362
Ask for Gold Fields call
A simultaneous audio webcast will be available on our
website. The digital replay will be available one hour
after the call. Playback details are as follows:
Playback code: 31247#
(Available for seven days)
South Africa & Other: +27 11 305 2030
USA: +1 855 481 5363
United Kingdom: 0808 234 6771
Australia: 1 800 091 250
Enquiries
Investor contacts:
Willie Jacobsz Phone: RSA +27 82 971 9238 | USA
+1 857 241 7127| email: willie.jacobsz@goldfields.co.za
Media contact:
Sven Lunsche Phone: RSA +27 83 260-9279
email: sven.lunsche@goldfields.co.za
ends
Notes to editors
About Gold Fields
Gold Fields Limited is an unhedged, globally diversified producer
of gold with eight operating mines in Australia, Ghana, Peru and
South Africa. In February 2013, Gold Fields unbundled its mature,
underground KDC and Beatrix mines in South Africa into an
independent and separately listed company, Sibanye Gold. In
October 2013, it expanded its presence in Western Australia by
acquiring the Granny Smith, Lawlers and Darlot mines (known as
the Yilgarn South Assets) from Barrick Gold.
Gold Fields has attributable annual gold production of
approximately 2.02 million ounces, as well as attributable
Mineral Reserves of around 49 million ounces and Mineral
Resources of about 113 million ounces. Attributable copper
Mineral Reserves total 708 million pounds and Mineral Resources
7,120 million pounds. Gold Fields has a primary listing on the
JSE Limited, with secondary listings on the New York Stock
Exchange (NYSE), NASDAQ Dubai Limited, Euronext in Brussels (NYX)
and the Swiss Exchange (SWX).
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
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