UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
Report of Foreign Private Issuer
Pursuant to Rules 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
Dated 24 October 2016
Commission File Number: 001-31318
GOLD FIELDS LIMITED
(Translation of registrant’s name into English)
150 Helen Rd.
Sandown, Sandton 2196
South Africa
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F
Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____
Directors C A Carolus (Chair), N J Holland
†
** (Chief Executive Officer), P A Schmidt** (Chief Financial Officer), A Andani
#
, K Ansah
#
, P J
Bacchus
†
, T P Goodlace, A R Hill
≠
, R P Menell, D M J Ncube, S P Reid^, Y G H Suleman, G M Wilson
^Australian,
†
British,
≠
Canadian,
#
Ghanaian, ** Executive Director
Company Secretary: MML Mokoka
Gold Fields Limited
Reg. 1968/004880/06
150 Helen Road,
Sandown, Sandton,
2196
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27 11 562 9700
Fax +27 11 562 9838
www.goldfields.com
Investor Enquiries
Avishkar Nagaser
Tel +27 1 1562 9775
150 Helen Road,
Sandown, Sandton,
2196
Postnet Suite 252
Private Bag X30500
Houghton, 2041
South Africa
Tel +27 11 562 9700
Fax +27 11 562 9838
www.goldfields.com
Investor Enquiries
Avishkar Nagaser
Tel +27 1 1562 9775
Mobile +27 82 312 8692
email Avishkar.Nagaser@
goldfields.com
email Avishkar.Nagaser@
goldfields.com
Thomas Mengel
Tel +27 11 562 9849
Mobile +27 82 315 2832
email
Thomas.Mengel@
goldfields.com
goldfields.com
Media Enquiries
Sven Lunsche
Tel +27 11 562 9763 >
Mobile +27 83 260 9279
email
Sven.Lunsche@
goldfields.com
goldfields.com
M E D I A R E L E A S E
DAMANG REINVESTMENT PLAN
Johannesburg, 24 October 2016: Gold Fields Limited (Gold Fields)
(JSE, NYSE: GFI) is pleased to announce the Reinvestment Plan for
the Damang Gold mine in Ghana which will extend the life of mine
(LOM) by eight years from 2017 to 2024. The Reinvestment Plan,
entails Gold Fields investing US$1.4bn (operating and capital
expenditure) over the LOM. It will enhance the Group’s presence in
one of its key operating regions and will result in significant social
benefits for Ghana, including the creation and preservation of 1,850
direct jobs.
(JSE, NYSE: GFI) is pleased to announce the Reinvestment Plan for
the Damang Gold mine in Ghana which will extend the life of mine
(LOM) by eight years from 2017 to 2024. The Reinvestment Plan,
entails Gold Fields investing US$1.4bn (operating and capital
expenditure) over the LOM. It will enhance the Group’s presence in
one of its key operating regions and will result in significant social
benefits for Ghana, including the creation and preservation of 1,850
direct jobs.
Over the LOM, a total of 165Mt will be mined, with 32Mt processed at
a grade of 1.65g/t, resulting in total gold production of 1.56Moz. Mining
and processing costs are estimated to average US$3.60/t and
US$16.25/t, respectively while all-in costs (AIC) are forecast to
average US$950/oz. The benefits of the Development Agreement
(signed between Gold Fields and the Government of Ghana in March
2016), have been key inputs into the Plan and enhances the
economics of the project.
The Reinvestment Plan is based on mineral resource models that
have been updated in 2016 and extensively reviewed both internally
and by external consultants, namely SRK, Optiro and Rowley
Geological Services (RGS).
Since operations at Damang commenced in 1997, the mine has
produced in excess of 4.0Moz, sourced from multiple open pits.
Production from the Damang Pit Cutback (DPCB) came to an end in
2013, and since then mining has focused on the margins of the
Damang pit (the Huni, Juno and Saddle areas) as well as lower grade
satellite deposits. The decline in production since 2013 has been
exacerbated by variations in grade in the northern and southern
extremities of the DPCB and the satellite pits where grades have been
lower than expected.
Consequently, a strategic review of Damang commenced in 2015
which identified that Gold Fields should return to mining the higher
grade core of the main Damang orebody. Evaluation work in 2015 and
2016 considered a number of options, including:
a grade of 1.65g/t, resulting in total gold production of 1.56Moz. Mining
and processing costs are estimated to average US$3.60/t and
US$16.25/t, respectively while all-in costs (AIC) are forecast to
average US$950/oz. The benefits of the Development Agreement
(signed between Gold Fields and the Government of Ghana in March
2016), have been key inputs into the Plan and enhances the
economics of the project.
The Reinvestment Plan is based on mineral resource models that
have been updated in 2016 and extensively reviewed both internally
and by external consultants, namely SRK, Optiro and Rowley
Geological Services (RGS).
Since operations at Damang commenced in 1997, the mine has
produced in excess of 4.0Moz, sourced from multiple open pits.
Production from the Damang Pit Cutback (DPCB) came to an end in
2013, and since then mining has focused on the margins of the
Damang pit (the Huni, Juno and Saddle areas) as well as lower grade
satellite deposits. The decline in production since 2013 has been
exacerbated by variations in grade in the northern and southern
extremities of the DPCB and the satellite pits where grades have been
lower than expected.
Consequently, a strategic review of Damang commenced in 2015
which identified that Gold Fields should return to mining the higher
grade core of the main Damang orebody. Evaluation work in 2015 and
2016 considered a number of options, including:
· Care and maintenance (C&M)
· Closure
· Closure
2
· Continuing operations
· Expanding operations
Given the importance of the region to the Group and taking into account the benefits of the Development
Agreement, Gold Fields has taken the decision to continue operations at Damang through the
Reinvestment Plan. The Group will also retain the optionality to expand the operation should the gold
price strengthen sustainably to above US$1,400/oz.
The Reinvestment Plan entails a major cut back to both the eastern and western walls of the DPCB. The
cut back will have a total depth of 341m, comprising of a 265m pre-strip to access the base of the existing
pit. This will be followed by a deepening of the pit by a further 76m which will ultimately provide access
to the full Damang orebody including the high grade Tarkwa Phyllite lithology. To provide short term ore
supply, while the Damang pre-strip is in progress, mining will continue at the Amoanda, and paleaoplacer
satellite pits (Lima South, Kwesi Gap and Tomento East). In addition, the plant feed will be supplemented
by low grade surface stockpiles.
Inclusion of the Damang cutback will result in a 72% increase in Proven and Probable Reserves to
1.68Moz (31.5Mt @1.65g/t) compared with the December 2015 figure.
Mining will be undertaken by two mining contractors, with negotiations currently at an advanced stage.
At this stage, the contractors are expected to be mobilised early in 2017. A total of 165Mt will be mined
over a 7-year period, with the majority of material coming from the Damang Complex (DCPB/Saddle).
Of this 32Mt will be processed at a grade of 1.65g/t, resulting in 1.56Moz of gold production. Operational
metrics for the project are summarised in the table below:
2017
2018
2019
2020
2021
2022
2023
2024
LOM
Tonnes mined
Kt
32 500
36 900
33 200
24 500
15 200
13 300
9 300
0
165 000
Tonnes milled
Kt
4 200
3 450
4 200
4 200
4 200
4 200
4 250
3 600
32 300
Head grade
g/t
0.90
1.25
1.75
1.80
2.10
2.05
2.05
1.10
1.65
Gold production
Koz
110
125
220
225
265
250
260
115
1 565
Mining cost
US$/t
3.30
3.10
3.35
3.70
4.25
4.50
5.20
0.00
3.60
Processing cost
US$/t
15.95
17.75
15.95
15.95
15.95
15.90
15.65
17.40
16.25
AIC
US$/oz
2 265
1 730
1 025
930
660
675
605
800
950
Apart from the waste strip, the only other significant capital required is for the construction of the Far
East Tailings Storage Facility (FETSF) as the existing tailings storage facility (TSF) is approaching full
capacity. An interim 2.5m raise has commenced on the TSF, which will provide for an additional 3.6Mt
tailings capacity and is due for completion by the end of November 2016. Stage 1 of the new FETSF is
planned for completion by end-2017 and will provide 20Mt capacity. Further lifts of the FETSF will cater
for all tailings for the new LOM. Only minor capital work will be required on the Damang Processing
Plant, mostly due to replacement of the SAG Mill shell in 2018.
3
Figure 1 below illustrates the capex profile for the Damang Reinvestment Plan:
In addition to the attractive returns associated with the project, the Reinvestment Plan will result in
significant social and fiscal benefits flowing into Ghana and, more importantly, the communities
surrounding Damang.
significant social and fiscal benefits flowing into Ghana and, more importantly, the communities
surrounding Damang.
Gold Fields estimates direct employment associated with the Reinvestment Plan of 1,850 people. Of
this:
this:
· 368 will be Gold Fields employees, 55% of whom will come from the adjacent communities;
· 90 will be on fixed term contracts, all from the catchment community; and
· Approximately 1,400 will be contractor employees, 60% of whom will come from local
· 90 will be on fixed term contracts, all from the catchment community; and
· Approximately 1,400 will be contractor employees, 60% of whom will come from local
communities.
Assuming a dependency ratio in Ghana around eight dependents per direct mining job, the spin-off
benefits of the new and retained jobs will be significant.
benefits of the new and retained jobs will be significant.
Investment in sustainable development projects is estimated to be US$5.0m over the eight-year period.
This will be split between education (US$1.5m), health (US$0.2m), water and sanitation (US$0.7m),
agriculture (US$1.6m) and infrastructure (US$1.0m).
This will be split between education (US$1.5m), health (US$0.2m), water and sanitation (US$0.7m),
agriculture (US$1.6m) and infrastructure (US$1.0m).
Gold Fields has also commenced the tarring of the road between Damang and Tarkwa, estimated to
cost US$17m, which is expected to have benefits for the mines as well as local stakeholders.
cost US$17m, which is expected to have benefits for the mines as well as local stakeholders.
Enquiries
Investors
Avishkar Nagaser
Tel: +27 11 562-9775
Mobile: +27 82 312 8692
Email :
Avishkar Nagaser
Tel: +27 11 562-9775
Mobile: +27 82 312 8692
Email :
Avishkar.Nagaser@goldfields.com
0
20
40
60
80
100
120
140
160
2017
2018
2019
2020
2021
2022
2023
Waste Stripping
Pre-development Cost
Re-investment Study
Mining
Processing & FETSF
Compensations
Engineering Projects
Others Projects
Growth Capital
4
Thomas Mengel
Tel: +27 11 562 9849
Mobile: +27 82 315 2832
Email:
Tel: +27 11 562 9849
Mobile: +27 82 315 2832
Email:
Thomas.Mengel@goldfields.com
Media
Sven Lunsche
Tel: +27 11 562-9763
Mobile: +27 83 260 9279
Email :
Sven.Lunsche@goldfields.com
ends
Notes to editors
About Gold Fields
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
with attributable annual gold production of approximately 2.0 million ounces. It has attributable Mineral Reserves of around 46 million ounces
and Mineral Resources of around 102 million ounces. Attributable copper Mineral Reserves total 532 million pounds and Mineral Resources
5,912 million pounds. Gold Fields has a primary listing on the JSE Limited, with secondary listings on the New York Stock Exchange (NYSE)
and the Swiss Exchange (SWX).
Sponsor: J.P. Morgan Equities South Africa (Pty) Ltd
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorised.
GOLD FIELDS LIMITED
Dated:
24 October 2016
By:
/s/ Nicholas J. Holland
Name:
Nicholas
J.
Holland
Title:
Chief Executive Officer