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Click to edit Master subtitle style16 November 2011
Presentation to Parliament
Peter Turner, Executive Vice-President
Gold Fields South Africa Region
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Forward Looking Statement
Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934.
Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual
results, performance or achievements of the company to be materially different from the future results, performance or achievements
expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others:
economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated
efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in
the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability
terms and deployment of capital or credit; changes in government regulations, particularly environmental regulations; and new legislation
affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors,
industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document.
The company undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.
22
Click to edit Master subtitle styleGroup Overview
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Gold Fields at a Glance
MALIYanfolila
GHANATarkwaDamang
SOUTH AFRICAKDCSouth DeepBeatrix
PERUCerro CoronaChucapaca
_____________________________________________________________1.Attributable gold equivalent Mineral Resources and Reserves as at 31 December 2010. The attributable reserves and resources reflect the additional 18.9% economic interest
acquired in the Ghana operations and the 17.8% economic interest acquired in the Peru operation. 2.Attributable gold equivalent production for the twelve month period to June 2011
South America West Africa South Africa Australasia Total
Resources1 8moz 16moz 169moz 10moz 230mozReserves1 5moz 10moz 60moz 4moz 80moz Production2 403koz 864koz 1.8moz 640koz 3.7mozNumber of mines 1 2 3 2 8
Offices Australia: Perth | Canada: Vancouver | Chile: Santiago | China: Beijing | Peru: Lima | South Africa: Johannesburg | USA: Denver
AUSTRALASIAAgnewSt Ives
FINLANDArctic Platinum Project
MinesExploration Projects: GFI 100% | CIR Option | JV GFI Operated (Position of mines are indicative only)
PHILIPPINESFar South East
KyrgyzstanTalas
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South Africa Region Overview
South Africa remains the bedrock of the global Gold Fields Group, with a primary JSE listing and secondary listings on the NYSE and others
Three multi-shaft operations: KDC (Kloof-Driefontein Complex), Beatrix and South Deep
Underground mining to depths of 3,600m below surface
48,545 permanent employees (93% HDSA)
All New Order Mining Rights secured
Economic value-add: GFIMSA’s R17 billion in revenue during C2010 was redistributed as follows:
R10 billion in procurement and contract payments
R6.3 billion in salaries
R300 million in socio-economic development spending
R400 million in taxes and royalties
Cape Town
Durban
Bloemfontein
JohannesburgSouth Deep
KDC
Pretoria
Beatrix
Mineral Reserves & Resources131 Dec 2010 (Moz)
1. Attributable gold equivalent Reserves and Resources as at 31 December 2010
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Gold Fields’ investment in South Deep
South Deep was purchased by Gold Fields in 2006 from JCI/Placer Dome and Western Areas for R22 billion
R9 billion investment by Gold Fields in the development of South Deep between 2007 –2015
Around 6,000 permanent and temporary jobs
Massive underground ore-body with a Reserve base of 34 million ounces and a Resource base of 81 million ounces of gold
As opposed to our legacy mines, South Deep is a mechanised mine
Already producing around 250,000 oz a year
Build-up to 750,000 oz
Life of Mine of 53 years
“Last man standing in South Africa’s gold mining industry”
Click to edit Master subtitle styleGFI Mining South Africa (Pty) Ltd (GFIMSA) Mining Charter Performanceas at 31 December 2010
Element Measure Overall Performance
Reporting Charter performance annual report
Ownership Economic Participation Shareholder Rights
Housing and Living Conditions
Occupancy rate reduction and provision of family accommodation
Procurement & Enterprise Development
HDSA spend on capital goods, services and consumables
Employment Equity Diversification of the workplace
Human Resource Development HRD expenditure as a percentage of payroll
Mine Community Development
Implementation of community development projects
Sustainable Development and Growth
Environmental management, health and safety and utilisation of SA research facilities
Beneficiation Local value addition beyond the baseline –Measure only effective from 2012
88
75% - 100%Excellent Performance
50% - 75%Marginal to Acceptable
25%-50%Non-compliance
0% - 25% Gross non-compliance
Not yet applicable
Mining Charter Performance
99
Mining Charter Performance
Element Measure 2010 Charter Target
GFIMSAPerformance
Reporting Mining Charter report submission
Annual submission Submitted
Ownership
Meaningful Economic Participation 15% Met
Full Shareholder Rights 15% Met
Housing and Living Conditions
% of Employees in Single Rooms Baseline (21%) Met
Hostel upgrades/Family units Baseline (58%) Met
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Mining Charter Performance
Element Measure 2010 Charter Target
GFIMSA Performance
HR Development HRD expenditure as % of payroll 3% 4%
Mine Community Development
Implement approved
Community Projects
Implementation of projects
Not met;New projects
implemented –subject to approval
Sustainable Development and Growth
Implement EMPs As per submitted EMP plan
Revised EMPs submitted for
approval
Action Plan on H&S - % of safety reps trained/workforce
2% 4%
% of Samples @ SA facilities Baseline (80%) Met
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Mining Charter Performance
Element Measure 2010 Charter Target
GFIMSA Performance
Procurement and Enterprise Development
Capital Goods 5% 39%
Services 30% 39%
Consumables 10% 44%
Employment Equity
Top Management 20% 33%
Senior Management 20% 31%
Middle Management 30% 46%
Junior Management 40% 49%
Core Skills 15% 59%
Leadership – Gold Fields Ltd
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Board of Directors Gold Fields Ltd – Reflects our SA and global spreadNick Holland (52)Chief ExecutiveBComm, BAcc, Witwatersrand; CA(SA)
Paul Schmidt (43)Chief Financial Officer BComm, Witwatersrand; Bcompt (Hons), Unisa; CA(SA)
Cheryl Carolus (52)Independent DirectorBA Law, Bachelor of Education, University of the Western Cape
Kofi Ansah (66)Independent DirectorBSc (Mech Eng) UST Ghana; MSc (Metallurgy)Georgia Institute of Technology, USA
Roberto Dañino (60)Independent DirectorMaster of Law (Harvard Law School) Pontificia Universidad Católica del Perú
Dr Mamphela A Ramphele (63)ChairMBCHB, University of Natal; PhD in Social Anthropology, UNISA; Diploma in Tropical Health and Hygiene; Diploma Public Health, WITS
Alan Hill (67)Independent DirectorBSc (Hons), MPhil (Rock Mechanics), Leeds University, UK
Rick Menell 55)Independent DirectorBA (Hons), MA (Nat Sc, Geology) Trinity, Cambridge, UK; MSc. (Min Expl & Mangmt) Stanford, Cal, USA
Matthews Moloko (46)Independent DirectorBSc Honours (Mathematics); Post Graduate Certificate in Education, Univ. of Leicester; Advanced Management Programme, The Wharton School – Univ. of Pennsylvania
David Murray (66)Independent DirectorBA Hons Econ; MBA, University of Cape Town
Don Ncube (63)Independent DirectorBA Econ, Fort Hare; Post Grad Dip. Labour Relations, Strathclyde, Scotland; Grad MSc Manpower Studies, Manchester; Dipl Fin Management
Gayle Wilson (66)Independent DirectorBCom, BCompt (Hons); CA(SA)
Rupert Pennant-Rea (63)Independent DirectorBA, Trinity College Dublin; MA, University of Manchester
Delfin Lapus Lazaro(65)S Metallurgical Engineering at the University of Philippines
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EnablingGrowth Delivery
Stuart AllanVice President & Head of South
Deep Projects & Capital
Johan BritzHead of Office
Strategy Management
Reg NaidooHead of Finance
Phillip JacobsHead of
Sustainable Development
Paddy GovenderHead of Commercial
Services
Ben HaumannVice President &
Head of Operations Beatrix
Morapedi Mutloane
Head of Human Resources
Koos BarnardSenior Vice
President & Head of Operations KDC
David TaunyaneHead of Processing
Ken MatthysenVice President & Head of Operations South Deep
Nick HollandChairman GFIMSA
Peter TurnerExecutive Vice-PresidentHead of SA Operations
Leadership - GFI Mining SA (GFIMSA)
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Mining Charter - Ownership
1414
All our SA mines have been issued their New Order Mining Rights
Demonstrable value creation and no risk to BEE participants
BEE ownership:
Mvelaphanda Resources acquired 15% in GFIMSA in 200415% BEE ownership requirement achieved within 5 years of Mining Charter coming into effect Deal was fully funded up-front and vestedNet value created circa R4 billion
In December 2010 three additional empowerment transactions were completed
Employee Share Option Plan (ESOP) – 10% of GFIMSA (HDSA)Broad-based BEE transaction for 10% of South Deep and 1% of GFIMSA. Held by South Deep Education Trust; South Deep Community Trust; BEE business and community leadersVoting rights established and economic value vested from Day 1; no funding was required from the beneficiaries; up-front cash provided; immediate dividend payments made and guaranteed annually thereafter; Beneficiaries cannot be diluted and no further cash contribution required
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Mining Charter – BEE Ownership OrganogramZungezileInvestmen
tHoldings
Winter Robin
Investments
Gregorian
Trading66
Rich Cove
Investment
Turncard
Trading118
Salmon Rock
InvestmentsSouth Deep Education
Trust
Invictus
South Deep JV
GFIMSA
MvelaphandaResources
90%
5.5%15%
Thusano Share Trust
(ESOP)
9%1%South Deep Community
Trust
10%
0.5%
TrustsBEE consortiumGold Fields subsidiaries
Direct Shareholding
BEE ownership
Criteria for inclusion in Invictus:Only HDSABroad-basedNot only GautengPreviously not beneficiaries of BEE deals
Representatives from the following group:YouthsWomenVeteransHDSA Emerging Business People and Potential future leadersCommunities
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Mining Charter - HousingHousing and Hostel Programme
R788 million housing and hostel upgrade programme in progress (2006 – 2014) (See next slide)
Family Housing Units
957 units planned by 2012. More than 560 units have been completed by end-2010 (see photo) (See next slide)
Company-owned housing units leased to Category 3-8 employees at a nominal rental with a view to selling it to them (See family unit slides)
Hostel Conversions
96% complete
Current resident ratio is 1.6 per room from 8 pre-2006. Moving towards 1 person per room by 2014 (See hostel conversion slide)
Residents have access to wellness and sport facilities New housing developments have
facilities for families and children
Upgraded hostel room can sleep 1 or 2 persons
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Family units in hostel environment replaced with new housing unit building programme –deemed to be more conducive to nurturing family values
Housing: Family units and Hostel conversion
Period TotalOriginal Hostel
Rooms Family Units
Social Labour Plan Commitment 4490 3536 954
Actual at 31 December 2010 3661 3099 562Percentage completed 82% 88% 59%
Actual at 30 September 2011 4047 3385 662Percentage completed 90% 96% 69%
Forecast at 31 December 2011 4375 3713 662Percentage completed 97% 105% 69%Forecast at 31 December 2012 5121 4164 957Percentage completed 114% 118% 100%Forecast at 31 December 2013 5618 4661 957Percentage completed 125% 132% 100%Forecast at 31 December 2014 5679 4722 957Percentage completed 126% 134% 100%
Total Investment in today’s money R 788m R 587m R 201m
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Housing and Living Conditions: Privacy and Dignity12 847 private bedrooms by 2014 with a room density slightly greater than 1
PeriodAverage
Room Density Total number of bedrooms
Number of upgraded bedrooms
Number of rooms not yet upgraded
28 February 2008 6.5
31 December 2010 1.8 10 701 9 078 1 623
30 September 2011 1.6 11 015 9 678 1 337
31 December 2011 1.5 11 630 10 621 1 009
31 December 2012 1.3 12 245 11 687 558
31 December 2013 1.2 12 786 12 725 61
31 December 2014 1 12 847 12 847
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Housing: Family Units
A Family Unit is actually a house of 49 m², with a carport, BIC’s, kitchen cupboards and a stove
Family Units are located in existing villages close to social infrastructure
The employee pays a nominal rental of R10 a month and is given free electricity and water that are capped on a monthly basis
Some of these Family Units will go on sale in the near future
Houses in East Village, KDC Mine
Elias Gumede receives keys to his home in Thembelihle Park, East Village from CEO Nick Holland
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1. Open to all employees who are South African citizens
2. Houses of 49 m² to be built by Gold Fields (the Developer) in proclaimed townships close to the Mines
3. 1000 houses to be built over a 5 year period from 2012 onwards.
4. Should the demand exceed 1000, Gold Fields will seek partners to assist with meeting such demand
5. Banks will provide the finance at a low interest rate at below Prime plus 3
6. Gold Fields will also provide an interest free loan so as to keep the monthly repayments as low as possible
7. Gold Fields will buy back the property within the first 5 years if the Homeowner decides to sell 2
0
Housing: Home Ownership Scheme
A typical floor plan of a 49 m²house
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Procurement
During C2010 we spent R2.6 billion (41% of our total SA procurement) with BEE suppliers
In C2010 we trained almost 300 unemployed community members in basic skills (artisans) to encourage SMME development
Of our supplier base of 2,200 companies, 674 (31%) are HDSA
Planning to increase number of HDSA suppliers through various initiatives such as mentorship programmes and SMME incubators
21
Mining Charter – Procurement & Enterprise Development
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Enterprise Development
Some of our largest Enterprise Development projects in our host communities and labour sending areas include:
Living Gold rose farm: 230 to 470 jobs
KDC Alien Vegetation project: 45 jobs
About 2,150 crop and 3,200 livestock farmers trained
About 6,000 secondary jobs through crop farming
Futyana Bakery: 22 jobs
Eden Village sewing project: 22 jobs
Stitchwise Paragon: 22 jobs to physically disabled and 20 able-bodied people 2
2
Mining Charter – Procurement & Enterprise Development
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Employment Equity
We are on track to achieve transformation and employment equity targets
This will be achieved through:
External recruitment in cases where we don’t have internal candidates
Leadership Development Programme through which we identify high-profile individuals at all levels of the Group
70% of our graduate and bursar intake are HDSA students
Strengthening of our talent retention strategy, including mentorship programmes
23
Mining Charter - Employment Equity
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Mining Charter - Employment Equity
0
10
20
30
40
50
60
70
Percen
tage
compliance
GFL Mining Charter Performance for 2010
Mining Charter Target
GFL Perfomance
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Mining Charter – Human Resource Development
Gold Fields Academy
The Academy manages our internal training programme with a budget of R275 million/yearThe Academy funded over 600 mining and engineering learnerships last yearThe Academy offered 13,150 staff and 3,100 community members ABET opportunities to date
Portable Skills
All employees requesting Voluntary Separation Packages must attend a portable skills course of their choice at the company’s expense. This training is also available, part-time, for other employeesAll employees completing the course will receive a R5,000 training allowance and leave with a handy man tool box, so they can immediately start working in the trade completedDuring the training they are trained on “starting up your own business” skillsShould shaft closures or rationalisation become unavoidable we will offer re-training at our portable skills centres to those employees potentially affectedOver the past five years the following number of employees and learners received portable skills training:
Employees – 3,750 learners; Community learners – 1,095 learnersTotal – 4845 learners
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Schools
Built three new schools (Reseamohetse, Glenharvie, Letsatsing) in near-mine communities (about 3,740 pupils)
Upgrading and equipping schools and assisting the Dept of Education in managing primary and secondary schools in the communities adjacent to our mines (about 3,260 schools)
Spending on school initiatives totalled R44 million over the past three years.
Universities
We gave a combined R30 million, three-year sponsorship to Wits University’s and the University of Johannesburg’s Mining Schools and provided additional support for the University of Pretoria
In 2011 we have almost 90 graduates in training and have issued almost 100 bursaries at universities and Future Education and Training Colleges 2
6
Mining Charter – HRD & Education
Reseamohetse Public School in Theunissen near our Beatrix mine in the Free State
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“Education is Empowerment”
South Deep Education Trust
The South Deep Education Trust – formed as part of Gold Fields’ BEE transaction last year –has in the past six months awarded over R6 million in funding and grants to a range of educational initiatives, including Archbishop Desmond Tutu’s Lapdesk project.
The Trust is entitled to substantial cashflows from South Deep over the life of the mine to continue promoting educational upliftment programmes
27
Mining Charter – HRD & Education
Archbishop Desmond Tutu, patron of the Lapdesk project, and Gold Fields CEO Nick Holland
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Commitments in support of job creation:
Bursaries, Learnerships and Training
Increase bursary awards for engineering students by 20% for 2012
Expand experiential internship opportunities for MQA/DMR sponsored engineering graduates. An additional 45 Section 18.2 engineering learners will be taken on next year in partnership with the Dept of Labour and MQA
Facilitate vacation work opportunities for 250 engineering students per annum, 50% of which are non-Gold Fields bursars
Establish partnerships with FET Colleges to prioritise technical qualifications for employees
Continue to contribute to the Mining Education and Training Fund (METF – a fund that sponsors university mining schools) and considering increasing the annual levy by up to 50%
Consideration is being given to a once-off contribution to a National Youth Development Fund 2
8
Commitments – Jobs, HRD &Training
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Additional Commitments – Jobs, HRD &Training
2929
o Gold Fields Group HRD Spending (Rm)
12 months to June 2009
18 months to Dec 2010
12 months to Dec 2011
12 months to Dec 2012
R274m R378m R275m R565m
Number of Graduates/Diplomats in training
C2009 C2010 C2011 C2012
61 74 83 91
Number of GFL Bursars (HDSA)
C2009 C2010 C2011 C2012
104 (74) 121 (90) 98 (88) 118 (106)
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1,000 new jobs over the next 3 years
Gold Fields development and R9-billion investment at the South Deep mine should lead to about a 1,000 new jobs by 2015
Declining gold industry makes further job creation at SA legacy operations (KDC and Beatrix) unlikely.
Should shaft closures and rationalisation become unavoidable we will offer re-training at our portable skills centres to those potentially affected
Job growth as a result of current mining operations will be in the areas of enterprise development, local economic development and secondary industries relating to mine procurement
30
Commitments – Jobs, HRD &Training
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Mining Charter – Mine Community Development
Closure
MWPSLP
EMP
Vision, Values, Strategy and Closure Philosophy
Self-sustaining post mining economy
Transforming through linking
our Charter, SLP, LED and
Enterprise Development
and job creation
Strategic advantage –Water and
Land availability
Focus on:1. Compliance2. Enterprise Development3. Job creation – youth4. Rehabilitation towards closure 5. New sustainable economy –
post closure
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Communities and Socio-economic Development Programmes
R86 million to be spent in C2011 on socio-economic development programmesFocus of our R86 million spend programme is on:
Community Health Programmes (Health Care Centres)Education (Schooling infrastructure and support programmes)Agriculture (Animal husbandry and training hubs)
Key requirement: Projects should be sustainable and independent of the mine Created about 5715 community job opportunities (See enterprise development section)
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Mining Charter – Mine Community Development
Benjamin Masebe -Alien Vegetation SMME member
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Communities and Socio-economic Development Programmes
The South Deep Community Trust is entitled to substantial cash-flows from South Deep over the life of the mine to promote community upliftment programmesR18 million spent in Labour Sending Areas (Eastern Cape, KwaZulu Natal, Limpopo and other SADC countries)More than 5 000 trained in livestock and crop farming (See enterprise development section)Joint venture between Gold Fields, AngloGold Ashanti and Letsema Circle to deliver more effective farming, medical and public sector support in the Eastern Cape. Initial R6 million commitment for researchFocus on collaboration for increased impact through our rural development programmes
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Mining Charter – Mine Community Development
Vuyisile Ndabeni (left) and a customer at his nursery in Lusikisiki
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Employee Health & Wellness
We encourage a healthy life-style of all our employees through our holistic programme called “24 hours in the live of a Gold Fields employee” – sport, nutrition, housing, safe production and health & wellness
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Employee Health & Wellness
Gold Fields runs an extensive system of clinics and hospitals (St Helena, Leslie Williams) for its employees and the surrounding communities
All our employees are entitled to free HIV/Aids and TB medication and a large portion of our infected workforce is making use of it. In C2010 almost 3,000 employees received the voluntary Highly Active Anti-Retroviral Treatment (HAART) – about half of those believed to be infected
In C2010 we spent R56 million on HAART and R29 million on TB treatment
Safety is our Number 1 Value and our Safety philosophy is “If we cannot mine safely, we will not mine” GFIMSA continues to strive
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Environment
Our membership of the ICMM, UN Global Compact and the World Gold Council requires leadership in Responsible Gold, Sustainable Development and Best Environmental practice
All our mines are ISO14001 certified, fully compliant with the Cyanide Code
Closure Plans are in place and are reviewed annually to ensure appropriateness and alignment with key role players e.g. Local Municipalities
Concurrent rehabilitation being linked to LED, Procurement and Enterprise Development
Rehabilitation Trust Funds are fully funded with cash and insurance guarantees
Biodiversity has become a integral consideration in our Closure Plans and will focus on Community benefit in the medium to 3
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Environment
A Carbon Management Strategy has been implemented and mitigation measures initiated, led by the Beatrix Methane Project. Other carbon projects investigated
Waste Management incorporated into the Carbon Management focus
Proactive water management to avoid long term AMD is being driven through the Liquid Gold project that will result ina sustainable water treatment solution going forward.
Awards
Gold Fields was joint first in the 2010 Carbon Disclosure Project (CDP) for JSE-listed companies.
Gold Fields recognised by UK’s Environmental Investment Organisation as the top Brics 300 company in terms of CO2-emission disclosure
Reporting Awards:
Joint 1st in E&Y Excellence in Corporate Reporting 37
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Vision and Values
Vision To be the global leader in sustainable gold mining
Values
Safety If we cannot mine safely, we will not mine
ResponsibilityWe act responsibly and care for the environment, each other, and all of our stakeholders - our employees, our communities and our shareholders
Honesty We act with fairness, integrity, honesty and transparency
Respect We treat each other with trust, respect and dignity
Innovation We encourage innovation and entrepreneurship
Delivery We do what we say we will do
GOAL Five million quality gold ounces in production or development by 2015
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Thank you