Report to Stakeholders
2019/2020
Gold Fields Report to Stakeholders 2019/2020
ABOUT GOLD FIELDS
Gold Fields is a globally diversified gold producer with nine operating mines in Australia, Peru, South Africa and Ghana (including the Asanko JV), as well as one project in Chile. The Company's attributable annual gold-equivalent production is 2.2Moz and it has attributable gold-equivalent Mineral Resources of 115.7Moz and Mineral Reserves of 51.3Moz. Our shares are listed on the Johannesburg Stock Exchange and our American depositary shares trade on the New York Stock Exchange.
AUSTRALIA | GHANA | SOUTH AFRICA | PERU | CHILE | ||||
Mines | Mines | Mine | Mine | Project | ||||||||
St Ives, Granny Smith, Agnew | Tarkwa, Damang and Asanko (45%) | South Deep - underground mine | Cerro Corona - gold, copper - | Salares Norte | ||||||||
and Gruyere (50%) in | - open pit mines | open pit mine | ||||||||||
Western Australia - open pit | ||||||||||||
and underground mines | ||||||||||||
Delivering
enduring value
in partnership with our
stakeholders
ABOUT THIS REPORT
This is Gold Fields' first Report to Stakeholders. While this is a standalone report, future versions will be released as a companion to our Integrated Annual Report starting from 2021 onwards.
Employees, shareholders and investors, our business partners, governments and communities have been identified as Gold Fields' key stakeholders.
This report seeks to outline, at a high level, the contributions we make to them and recent developments impacting the relationships. In the year dominated
by the Covid-19 pandemic, we would be amiss not to highlight the contributions we have made to our stakeholders to support them in these difficult times.
While the focus of the report will be on 2019, we have included, where feasible, statistics, trends and development of the first half of this year (H1 2020).
TABLE OF CONTENTS
GROUP | AUSTRALIA | GHANA | SOUTH AFRICA | PERU | CHILE | |||||||||||
About this report | 2 | Stakeholder contributions in 2019 | 7 | Stakeholder contributions in 2019 | 10 | Stakeholder contributions in 2019 | 13 | Stakeholder contributions in 2019 | 16 | Stakeholder contributions in 2019 | 19 | |||||
Chief Executive Officer's statement | 3 | Community value creation | 8 | Community value creation | 11 | Community value creation | 14 | Community value creation | 17 | Covid-19 programmes | 19 | |||||
Value creation for our stakeholders | 3 | Covid-19 programmes | 8 | Covid-19 programmes | 11 | Covid-19 programmes | 14 | Covid-19 programmes | 17 | Case study Skills development | 19 | |||||
Unlocking value for host communities | 5 | Case study Indigenous peoples' engagement | 9 | Case study Road infrastructure | 12 | Case study Education | 15 | Case study Water infrastructure | 18 | Engagement with stakeholders | 19 | |||||
Our Covid-19 interventions | 5 | Key spending trends | 9 | Key spending trends | 12 | Key spending trends | 15 | Key spending trends | 18 | |||||||
2
Gold Fields Report to Stakeholders 2019/2020
CHIEF EXECUTIVE OFFICER'S STATEMENT
Delivering enduring value in
partnership with our stakeholders
VALUE CREATION FOR OUR STAKEHOLDERS
We create and distribute value for all stakeholders in the countries in which we operate. Our total value distribution, graphically depicted over the next few pages, highlights the economic value we created at Group and regional level during 2019 and H1 2020.
The Group's value distribution to national economies in 2019, amounting to US$2.58bn, was slightly lower than the US$2.71bn in national value distributed in 2018. Of this, 68% was paid to suppliers and contractors, 15% to
Mining is an industry that has significant impacts on the countries and communities in which it operates. The support of our stakeholders is critical in ensuring that we receive and retain our regulatory approvals and social licences to operate. This can only be achieved if we develop stakeholder relationships that are based on constructive, transparent and open engagement and if we create enduring value in partnership with them. I consider that Gold Fields has, for the most, found ways to achieve this.
We consistently balance the interests, needs and expectations of our stakeholders with the best interests of our Company. Gold Fields has well-established stakeholder engagement practices and we actively and continuously engage our stakeholders on issues that are material to them and us and publicise these engagements. We consider the following to be our key stakeholders: shareholders and other investors, employees, host communities, governments and business partners (contractors and suppliers).
Our Stakeholder Relationship and Engagement Policy, approved by the Board in 2018, has been entrenched as part of our alignment with the vision of the King IV Report on Corporate Governance for South Africa 2016 (King IV*) "to adopt a stakeholder-inclusive approach that balances the needs, interests and expectations of material stakeholders in the best interests of the Company". We further developed an internal portal to register material engagements with our key stakeholders. Our management teams have been incentivised to enhance the number and quality of their stakeholder engagements since January 2019.
Above all, it is critical that we share the wealth we extract from mineral resources with our stakeholders and so seek to create enduring value in partnership with them. Our total value
distribution, graphically depicted over the next few pages, highlights the economic value we created during 2019 and H1 2020.
Gold Fields continues to focus on maximising in-country and host community economic impact. Of our procurement spend, 96% is to in-country suppliers, while, on-average, 95% of our workforce are in-country nationals.
Our host communities - those communities that are directly impacted by our mines - are a key focus for Gold Fields as sustainable communities are essential for our operations to thrive.
I am particularly proud of this host community focus and I believe that it differentiates us from many of our peers. By creating host community jobs among our workforce, procuring goods and services from host community enterprises and investing in community projects, we deliver enduring value and contribute to their social and economic wellbeing. Our 2019 performance illustrates our progress:
- Almost 9,300 people, or 55% of our workforce, were employed by us and our contractors from host communities.
- Host community procurement was US$635m, or 34% of total spend.
- Our investment in socio-economic development (SED) projects in our host communities totalled US$22m.
These initiatives ensured that US$782m, 33% of our total value contribution, remained with our host communities. It is pleasing to see that our independent relationship assessment surveys show improved ratings of Gold Fields as a result of this.
Finally, we have taken a proactive and comprehensive approach to mitigate the impact of Covid-19 on our workforce and communities. Gold Fields has prioritised the health of our employees and contractors above operational requirements, supported communities through donations of personal protective equipment (PPE) and other equipment and worked with governments in rolling out Covid-19 mitigation and prevention programmes.
This, Gold Fields' first Report to Stakeholders, provides a high-level understanding of the critical importance
of stakeholders to the Company, and how we seek to entrench and strengthen a mutually beneficial relationship with them.
Nick Holland
CEO
employees, 10% to governments in taxes and royalties, and 6% to equity and debt investors. In H1 2020, our total value creation was US$1.29bn. The H1 2020 numbers are not assured.
The value creation definitions have been developed by the World Gold Council to provide investors and other stakeholders with clarity about the economics of gold mining and how value is created for the industry's key stakeholders.
TOTAL AND NATIONAL VALUE DISTRIBUTION - 2019
National value distribution by region | SED | Capital | National value | |||
and type (US$m) | Government | Business | Employees | spend | providers | distribution |
Peru | 60 | 182 | 42 | 6 | 5 | 295 |
Australia | 80 | 758 | 133 | 1 | 12 | 984 |
South Africa | 21 | 187 | 92 | 22 | 7 | 290 |
Ghana | 109 | 614 | 68 | 13 | 5 | 810 |
Corporate | 2 | 3 | 60 | 0 | 133 | 198 |
Total Gold Fields | 254 | 1,744 | 395 | 22 | 162 | 2,577 |
- South Deep does not yet pay income tax as it is in a loss-making position.
- This includes spending from the South Deep trusts and Social and Labour Plan (SLP) commitments.
VALUE CREATION AND DISTRIBUTION
2019 - US$2,577m (%) | H1 2020 - US$1,292m (%) |
1 | 10 | 12 | |
6 | 1 | ||
8 | |||
15 | |||
16 | 63 | ||
68 |
● US$1,744m | ● Payments to suppliers and contractors | ● US$815m |
● US$395m | ● Payments to employees in salaries and wages | ● US$203m |
● US$22m | ● Investment in host community development | ● US$8m |
● US$162m | ● Dividend and interest payments to investors | ● US$110m |
● US$254m | ● Tax and royalty payments to gorvernments | ● US$155m |
* Copyright and trademarks are owned by the Institute of Directors in South Africa NPC and all of its rights are reserved.
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Gold Fields Report to Stakeholders 2019/2020
VALUE CREATION FOR OUR STAKEHOLDERS CONTINUED
EMPLOYEES
Value distribution per region
PAYMENTS INCLUDE
Salaries and wages, benefits and bonuses
CAPITAL PROVIDERS
Value distribution per region
PAYMENTS INCLUDE Interest and dividend payments
11%
15%
17%34%
23%
US$395m 55%
paid in salaries and benefits | host community employment |
VALUE CREATED
• Competitive salaries with a strong performance-based component. |
3%
84%
8% 2%
3%
US$162m | US$356m | |
to the providers of debt and equity capital | reduction in net debt | |
VALUE CREATED
- Americas
- Australia
- South Africa
- West Africa
- Corporate
• | Improved business processes, operational efficiencies and productivity. |
• | Modern working practices, such as flexible work options. |
- Americas
- Australia
- South Africa
- West Africa
- Corporate
- Funding the development, maintenance and growth of our operations and overall business to ensure the sustainability of Gold Fields.
- Share price improvements offering a return on capital invested.
WORKFORCE BY GROUP AND REGION (END JUNE 2020)
Proportion of | ||
Total | nationals | |
% | ||
BUSINESS
Value distribution per region
PAYMENTS INCLUDE |
Operational and capital procurement |
workforce | Employees | Contractors | ||||
H1 2020 | H1 2020 | 2019 | H1 2020 | 2019 | H1 2020 | |
Chile | 535 | 127 | 125 | 408 | 2,627 | 93 |
Peru | 2,093 | 394 | 420 | 1,699 | 235 | 100 |
Australia | 3,175 | 1,669 | 1,657 | 1,506 | 1,266 | 98 |
South Africa | 3,855 | 2,254 | 2,310 | 1,601 | 1,674 | 84 |
Ghana | 6,395 | 1,057 | 1,046 | 5,338 | 6,198 | 97 |
1%
35%
11%
10%
43%
US$1.74bn | 34% |
paid to suppliers and contractors | of mine operational and capital spend |
(excluding utilities) is with host community | |
firms |
VALUE CREATED
Corporate | 96 | 96 | 97 | 0 | 1 | 93 |
Total | 16,149 | 5,597 | 5,655 | 10,553 | 12,001 | 95 |
- The source of this information is the Group-wide human resources information system. Host community employment data excludes our corporate and regional offices as well as projects.
- Nationals refer to employees only.
- Americas
- Australia
- South Africa
- West Africa
- Corporate
- 96% of total procurement spend is from businesses based in our operating countries.
- US$635m of total procurement spend by our mines - 34% of total - was spent on suppliers and contractors from our host communities.
GOVERNMENTS | |
KEY WORKFORCE STATISTICS - 2019 | Value distribution per region |
PAYMENTS INCLUDE
Mining royalties and land-use payments, taxes, duties and levies
3% 23% | |||
42% | |||
31% | |||
95% | 20% | The average training | 1% |
US$254m
paid in taxes and royalties
US$2m
paid to the Ghanaian government in dividends relating to its 10% stake in each of Damang and Tarkwa
or 5,317 people of our | of our workforce - both overall | spend per employee in | ● Americas |
2019 was | |||
employees are nationals | and in leadership positions - | ● Australia | |
US$1,912 | ● South Africa | ||
of the countries | are female, one of the | ||
● West Africa | |||
in which we operate | higher levels in the industry | ||
● Corporate |
VALUE CREATED
- Over 96% of the value created remains in the countries of operation.
- Royalty payments, where applicable, as well as infrastructure improvements through public-private partnerships.
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Gold Fields Report to Stakeholders 2019/2020
VALUE CREATION FOR OUR STAKEHOLDERS CONTINUED
COMMUNITIES
Value distribution per region
27%
59% 5%
9%
- Americas
- Australia
- South Africa
- West Africa
PAYMENTS INCLUDE
Socio-economic development (SED) spend
US$27m
Tarkwa - Damang Road
VALUE CREATED
- Jobs and supply opportunities through host community procurement.
- Maximise local opportunities through host community employment.
- Building skills base in the community through education and bursaries.
- Invest in the community across services, including health and education, enterprise development and infrastructure.
UNLOCKING VALUE IN OUR HOST COMMUNITIES
Host communities are one of Gold Fields' most important stakeholder groups.
Host communities are those within the vicinity of our operations, directly affected by our activities and have a reasonable expectation of our duties and obligations. Our operations identify their host communities to secure both their legal mining and social licences to operate.
By creating socio-economic benefits for them through our various shared value programmes, particularly host community employment and procurement, we create the foundation for long-term value creation in our communities that should continue beyond mine closure. Taxes and royalties - if utilised appropriately - allow governments to develop critical infrastructure for the benefit of the country as well as our host communities.
Total economic impact on our host communities relative to our SED spend
US$m | |||||
1,000 | |||||
800 | |||||
528 | 604 | 791 | 686 | 782 | |
600 | |||||
331 | |||||
400 | |||||
COMMUNITY ACCEPTANCE RATING
Community acceptance improved from 5% in 2012, to 7% in 2014, to 32% in 2016 and to 48% in 2019
Community support rose from 33% in 2015,
to 52% in 2017 and (for three communities measured) to 62% in 2019
The total value we created in our host communities in 2019
US$782m
33% of total value creation
BENEFITS TO OUR HOST COMMUNITIES
US$635m
Host community
procurement
US$22m
US$125m SED
investment
Host community employee wages
200 | |||||||||
14 | 16 | 17 | 25 | 22 | 8.5 | ||||
0 | |||||||||
2015 | 2016 | 2017 | 2018 | 2019 | H1 2020 | ||||
■ Total host community spend | ■ SED spend | ||||||||
Group in-country employees and host community workforce | |||||||||
% | |||||||||
94 | 95 | 95 | 96 | 95 | 95 | ||||
100 | |||||||||
80 | |||||||||
60 | |||||||||
59 | 48 | 40 | 56 | 55 | 53 | ||||
40 | |||||||||
20 | |||||||||
0 | |||||||||
2015 | 2016 | 2017 | 2018 | 2019 | H1 2020 |
- Proportion of national employees ■ Proportion of host community employees and contractors
Group in-country and host community procurement spend
% | ||||||
100 | ||||||
85 | 92 | 94 | 93 | 96 | 96 | |
80 | ||||||
Strong community support with a relationship index of 73% at Damang and
78% at Tarkwa in 2015
US$782m | 34% | 10,950 | 55% |
in value creation through | US$635m of our | in host community jobs, comprising | or 9,269 people of our |
procurement, wages and | procurement was spent | • 2,525 employees • 6,744 contractors | workforce are employed from |
SED spend, 33% of total | in our host communities | • 1,177 suppliers1 • 504 non-mining jobs | our host communities - |
on 676 suppliers | up from 40% in 2017 |
1 Excluding Peru and Australia, who have not started to measure this yet.
60 | |||||||
40 | |||||||
35 | 38 | 40 | 27 | 34 | 31 | ||
20 | |||||||
0 | |||||||
2015 | 2016 | 2017 | 2018 | 2019 | H1 2020 |
- In-countryprocurement spend ■ Host community procurement spend
5
Gold Fields Report to Stakeholders 2019/2020
OUR COVID-19 INTERVENTIONS
RESPOND AND RECOVER - SHORT-TERM ACTIONS
AngloGold Ashanti, Gold Fields, Harmony and Sibanye-StillwaterThis is Gold community radio Covid-19awareness campaign
Gold Fields' public Covid-19 portal, South Deep video for children, Ghana and Peru video and TV campaigns
The South Deep mine paid small, medium and micro-enterprises (SMMEs) providers and contractors during the mine's closure and salaries to mineworkers during lockdown
Gold Fields' Exco donated a third of their salaries for three months to the Solidarity Fund. Employees donate a salary percentage to the same fund or similar charitable initiatives
Gold Fields is supporting host governments in their programmes and initiatives to mitigate the impact and contain the spread of Covid-19
Gold Fields is also supporting host communities by providing direct support to non-governmental organisations and other organisations that seek to assist the most vulnerable
LONG-TERM TRANSFORMATIONAL ACTIONS AND WAYS OF WORKING
Gold Fields' human rights and modern slavery document educates suppliers about the risks pertaining to slavery and the Company's expectations of suppliers regarding alignment with its values and its human rights policy statement
Gold Fields in Ghana undertook the rehabilitation of the 33km public road that links Tarkwa and Damang mines
The South Deep mine in South Africa has initiated food security projects
involving planting vegetable gardens at high schools in its host communities where food security at a household level is a challenge
The South Deep mine in South Africa is collaborating with Lima
Rural Development Foundation to implement a mine community farming enterprise development programme
The Cerro Corona mine in Peru is supporting around 5,000 small-scale farmers by building around 2,000 reservoirs in the Hualgayoc district
Source: Building Forward Better Framework: Covid-19 Action Toolkit
Lives | Livelihoods | Learning ● Core business ◆ Community investment |
IMPACT ON OUR PEOPLE | South | West | Group and | ||||
(Cumulative up to 16/10/2020) | Americas | Australia | Africa | Africa | Group | Galiano | |
Tested | 23,781 | 11 | 6,668 | 4,660 | 35,120 | 35,568 | |
Positive | + | 945 | - | 391 | 273 | 1,609 | 1,699 |
Negative | - | 22,836 | 11 | 6,052 | 4,377 | 33,276 | 33,634 |
Awaiting results | - | - | 225 | 10 | 235 | 235 | |
Active cases | 14 | - | 4 | 9 | 27 | 27 | |
In hospital | - | - | - | - | - | - | |
Recovered | 930 | - | 386 | 264 | 1,580 | 1,669 | |
Died | 1 | - | 1 | - | 2 | 3 |
OUR INTERNAL PROGRAMMES
Since the start of the pandemic in March, a Group Exco Covid-19 crisis management team has met regularly to coordinate actions and strategies to mitigate the impact of the pandemic on operations. Regular meetings of the Risk Committee of the Board have also been held to provide governance oversight.
Support to employees and contractors, with particular attention to their health, wellness and mental wellbeing, has been a focus. Regional and site committees have performed similar roles.
Key activities to ensure safe operations include
- Strict adherence to all government regulations/protocols.
- Closure of offices and imposition of travel restrictions.
- Standard operating procedures on return to work.
- Social distancing, sanitisation and mask-wearing mandatory.
- Regular communication to employees about Covid-19, assisting them to work remotely and how to deal with the fall-out of the pandemic.
- Dedicated Covid-19 information portal.
- Social media awareness and return-to-work communication campaigns for employees, communities and others.
- Mental health support programmes.
OUR RESPONSE TO COMMUNITIES
Our operations have actively supported host communities and governments in their efforts in controlling the pandemic and assisting people in need. Support to communities has been tailored to country circumstances and has included:
- Donations to government/industry response funds.
- Donations of medical equipment.
- Distribution of food/meals to vulnerable people.
- Supporting local government efforts such as street sanitisation.
- Distribution of masks, sanitisers, education leaflets and videos.
- Radio and TV campaigns to educate, raise awareness, dispel myths and prevent stigmatisation and gender-based violence.
- Working with our peers in host communities.
6
Gold Fields Report to Stakeholders 2019/2020 | Australia | |
AUSTRALIA STAKEHOLDER REPORT |
GRUYERE MINE
AGNEW MINE
GRANNY SMITH MINE
ST IVES MINE
AGNEW
No of employees (June 2020) | 331 | OUR STAKEHOLDER CONTRIBUTIONS IN 2019 | ||||||
No of contractors (June 2020) | 416 | |||||||
Estimated size of impacted community (2018) | Leinster, Leonora - | |||||||
5,003* | ||||||||
Gold production (2019) | 219koz | WORKFORCE | 2,923 | |||||
GRUYERE | Five years | PROFILE | ||||||
Life of mine | ||||||||
H1 2020 | ||||||||
No of employees (June 2020) | 162 | Total value contribution | Tax and royalty payments | Payments to supplier and contractors | Employees, contractors | |||
No of contractors (June 2020) | 274 | 1,662 | 20% | US$984m | US$80m | US$758m | ||
Estimated size of impacted community (2018) | Laverton - 1,206* | and non-mining jobs | ||||||
Gold production (2019) | 50koz | |||||||
Life of mine | 11 years | |||||||
Number of | Women | |||||||
GRANNY SMITH | employees | in workforce | Host community | |||||
In-country procurement | Investment in the country | |||||||
No of employees (June 2020) | 555 | procurement (% of total) | ||||||
(% of total) | A$453m | |||||||
No of contractors (June 2020) | 244 | 21 | ||||||
Estimated size of impacted community | Laverton | 18% | US$1,559 | 99 | ||||
(June 2020) | - 1,206* | spent on exploration | Salary and | |||||
Gold production (2019) | 275koz | Host community | since 2015 | wage payments | ||||
Life of mine | 12 years | Live in host | Average | procurement (US$m) | ||||
ST IVES | US$210m | |||||||
community | per employee | |||||||
training spend | US$171m | |||||||
No of employees (June 2020) | 454 | |||||||
No of contractors (June 2020) | 468 | 284 | Host community | In-country | ||||
Estimated size of impacted community (2018) | Kalgoorlie/ | US$97m | 13% | |||||
Boulder - 29,998; | employment | employment | ||||||
Coolgardie - 3,506* | SED spend | |||||||
Gold production (2019) | 371koz | (% of total) | (% of total) | |||||
Life of mine | Nine years | Employee | Employee | US$1.2m | Number of host community | 23 | 98 | |
* Australian Bureau of Statistics | wages | turnover | ||||||
and benefits | suppliers supported | |||||||
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Gold Fields Report to Stakeholders 2019/2020
AUSTRALIA STAKEHOLDER REPORT CONTINUED
AUSTRALIA
Australia host community Value 2019
1
71
171
- SED investment
- Employee wages
- Procurement spend
COMMUNITY VALUE CREATION
US$243m
in 2019
US$171m | 284 | 616 | ||||||||
host community | host community | host community jobs in the | ||||||||
procurement | suppliers | mine value chain, comprising | ||||||||
• 462 employees | ||||||||||
• 154 contractors | ||||||||||
COVID-19
1 | Donations to government and/or industry |
response funds | |
2 | Direct support to NGOs, government and other |
organisations that seek to assist host communities | |
3 Awareness-raising in host communities
- Contribution of US$150,000 to the Western Australian (WA) resources sector community support initiative, providing essential health and wellbeing
benefits to the most vulnerable in the WA community.
- St Ives has committed US$15,000 in partnership with the Shire of Coolgardie and Kambalda ESS (Compass Group) to provide a "Meals on Wheels" service to vulnerable senior citizens in the Kambalda community.
- Hand sanitiser donations to Leonora District School and Football West regional office in Kalgoorlie.
- Continued support to Netball WA (through the Gold Industry Group) and Football West, with US$350,000 committed to these partnerships during 2020.
- Donated US$100,000 to Food Bank WA for food items that were included in emergency food relief hampers during Covid-19. Employees also participated in packing some of these hampers.
- Direct engagement with community organisations and local government.
Since the steady growth of Covid-19 cases in Australia in Q1 2020, aggressive measures have been implemented by the Federal and WA governments to contain the virus, including the effective closure of international and State borders. These measures have been successful, with the last case of community transmission in WA occurring on 12 April 2020.
Given this success, a number of the restrictions have been progressively lifted as testing and medical capacity has increased. The key threat to maintaining the current position is the potential import of cases from other states in Australia (most notably Victoria and New South Wales) and from international destinations. For this reason, a ban has been placed on any international and intra-state trave into WA.
We have been aligning our operations to the relaxation in restrictions, but remaining cautious in our approach. The key restrictions we have lifted include:
- Roster changes - we had rapidly moved our employees to longer rosters (two weeks on/two weeks off) to reduce
travel to the sites and potential exposure. We are mindful that extended rosters can be difficult from a mental health perspective for both workers and their families and therefore have taken the decision to revert to our original roster arrangements commencing in July 2020.
- Physical distancing on flights - to enable physical distancing on flights to our sites, we had reduced
loading on the planes to 60%. However, with the lifting of restrictions in WA, operators of commercial flights moved towards normal loading on the flights, which was quickly followed by many of our peers. Through transitioning to our original rosters, the removal of physical distancing on our flights is integral and therefore we have reverted to full loading on the planes. We supply our workforce with the required PPE should they wish to use it, and screen all employees prior to travel.
- Return to the office for Perth employees - the State government has encouraged a return to the workplace and, as part of reopening the Perth office, we therefore completed a comprehensive risk assessment to identify potential exposure pathways. Controls have been implemented in accordance with government recommendations. We have also made use of our flexible work policy to allow employees to apply for ongoing remote working arrangements, which further reduces the occupancy of the office.
- Return to work for high-risk employees - to safeguard our employees who were the most vulnerable to severe cases of Covid-19, we screened all employees for potential risk and, based on the advice of our Company doctors, removed certain employees from the sites and Perth office. With only limited active cases currently in WA the risk of exposure to our high-risk employees is currently deemed to be low. Therefore, these employees are participating in individual risk assessments to facilitate a return to their respective workplaces.
In terms of governance, we continue to maintain our current structure and process, but the current status of the pandemic in WA has resulted in a relaxation of the frequency of our crisis management meetings.
8
Gold Fields Report to Stakeholders 2019/2020
AUSTRALIA STAKEHOLDER REPORT CONTINUED
CASE STUDY
Indigenous peoples' engagement
Key statistic
Our procurement from Aboriginal firms over the last five years
YEAR | 2016 | 2017 | 2018 | 2019 |
US$ | 2,884 | 71,268 | 142,090 | 897,722 |
KEY SPENDING TRENDS
Australia SED spend
1.19 | US$m | ||||||
1.2 | |||||||
1.0 | |||||||
0.8 | |||||||
0.62 | |||||||
0.6 | |||||||
0.32 | 0.48 | ||||||
0.4 | |||||||
0.19 | |||||||
0.2 | |||||||
0.0 | |||||||
2016 | 2017 | 2018 | 2019 | H1 2020 |
Australia SED spend by type 2019 (%)
2
1 | 21 |
4 | |
38 | |
7 | 12 |
- Education
- Enterprise development
- Health and wellbeing
- Charitable giving
15 ● Sport
- Infrastructure
- Training
- Health and wellbeing
In Australia, we recognise Aboriginal and Torres Strait Islander peoples as the traditional owners of the land on which we operate. We are focused on building trusted relationships with Aboriginal and Torres Strait Islander peoples to not only maintain our social licence to operate, but also to positively contribute to the society in which we operate. Our Indigenous Peoples Strategy provides the framework for a consistent approach to our engagement with Aboriginal and Torres Strait Islander peoples to improve our relationships and mitigate risks to our business. Our strategy is based on three key pillars: building trusted relationships, delivering benefits that have real impact and demonstrating respect.
Closely aligned with these three pillars are the elements of a Reconciliation Action Plan (RAP). Developed by Reconciliation Australia (an independent, not-for-profit organisation), a RAP provides a structured framework through which organisations can support the national reconciliation movement through developing strong and respectful relationships and creating meaningful opportunities for Aboriginal and Torres Strait Islander peoples. To date, over 1,000 organisations across a range of sectors in Australia have developed and implemented a RAP in their business across the four stages (Reflect, Innovate, Stretch and Elevate).
During 2019, we developed our Reflect RAP. Officially launched in February 2020, in this first stage, we are focused on building capacity in our people and providing them with greater understanding and cultural awareness to inform our actions as we progress on our
reconciliation journey. Our other key focus at this stage is in building and strengthening relationships with our Aboriginal and Torres Strait Islander stakeholders, recognising that this will take time.
Delivery of this Reflect RAP throughout 2020 and 2021 is overseen by a Steering Committee, chaired by Gold Fields' Executive Vice-President for the Australian region, and is supported by four site-based working groups.
At the same time, we continue to focus on ways to build our relationships with key Aboriginal and Torres Strait Islander stakeholders and the broader host communities in which we operate:
- We continue to work closely with the Yilka and Sullivan Edwards people, the determined native title holders over the lands on which our Gruyere operations are located. Under the formal Native Title Agreement, we continue to build on opportunities for employment and business opportunities for the local community, as well as supporting a range of programmes at the Cosmo Newberry Aboriginal community.
- We support a range of community activities in the remote towns of Laverton, Leonora, Kambalda and the city of Kalgoorlie, and participate in a local industry group to support greater Aboriginal economic development in the Goldfields region.
Gold Fields is also in the process of developing appropriate strategies to improve and increase Aboriginal and Torres Strait Islander
employment outcomes within our workplaces and increase supplier diversity, to achieve a greater representation of Aboriginal and Torres Strait Islander businesses in our supply chain.
ABORIGINAL CULTURAL HERITAGE PROTECTION
An important learning from the recent destruction of ancient caves located at Juukan Gorge in WA is that ongoing and transparent stakeholder engagement must be closely allied to legal approval and heritage management processes.
Stakeholder engagement remains a key focus for the Australian region, and plans are being developed to ensure that strong relationships are built with the traditional owners, and that we have robust processes in place for Aboriginal cultural heritage management.
Furthermore, we support the management and preservation of Aboriginal cultural heritage at each of our operations, including through the conduct of heritage surveys and cultural awareness training.
ENGAGEMENT WITH STAKEHOLDERS
2018 | 2019 | |||
Engagements - total | 288 | 348 | ||
Communities | 34 | 85 | ||
Governments | 160 | 129 | ||
Others | 94 | 134 | ||
Grievances | 0 | 1 | ||
9
Gold Fields Report to Stakeholders 2019/2020
GHANA STAKEHOLDER REPORT
Ghana
ASANKO GOLD MINE
DAMANG GOLD MINE
TARKWA GOLD MINE
DAMANG | OUR STAKEHOLDER CONTRIBUTIONS IN 2019 | |||||||
No of employees (June 2020) | 401 | |||||||
No of contractors (June 2020) | 1,767 | |||||||
Estimated size of impacted community | 36,000 | WORKFORCE | ||||||
(2011) | 6,493 | |||||||
Gold production (2019) | 208koz | PROFILE | ||||||
Life of mine | 2025 | H1 2020 | ||||||
TARKWA | Total value contribution | Tax and royalty payments | Payments to suppliers and contractors | Employees, contractors | ||||
656 | ||||||||
No of employees (June 2020) | US$810m | US$109m | US$614m | |||||
1,057 | 10% | and non-mining jobs | ||||||
No of contractors (June 2020) | 3,571 | |||||||
Estimated size of impacted community | 48,000 | |||||||
(2011) | Number of | Women | ||||||
Gold production (2019) | 519koz | |||||||
employees | in workforce | |||||||
Life of mine | 2033 | Host community | ||||||
In-country procurement | Investment in the country | |||||||
procurement (% of total) | ||||||||
ASANKO JV (45% MANAGED | (% of total) | US$350m | ||||||
56 | ||||||||
BY GALIANO GOLD) | 68% | US$816 | 91 | |||||
No of employees (June 2020) | 614 | Damang | Salary and | |||||
No of contractors (June 2020) | 3,300 | Host community | ||||||
Estimated size of impacted community | 60,000 | Reinvestment | wage payments | |||||
Live in host | Average | procurement (US$m) | ||||||
(2011) | Project (spend | US$68m | ||||||
Life of mine | 2028 | community | training spend | US$394m | ||||
up to end-2019) | ||||||||
Gold production (2019 - 100%) | 251koz | per employee | ||||||
US$41m | 0.6% | 122 | Host community | In-country | ||||
employment | employment | |||||||
Employee | Employee | SED spend | (% of total) | (% of total) | ||||
US$13m | Number of host community | 72 | 97 | |||||
wages | turnover | |||||||
and benefits | suppliers supported |
10
Gold Fields Report to Stakeholders 2019/2020
GHANA STAKEHOLDER REPORT CONTINUED
GHANA
West Africa host community Value 2019
13 8
394
- SED investment
- Employee wages
- Procurement spend
COMMUNITY VALUE CREATION
US$415m
in 2019
US$415m | 122 | 6,493 |
in value creation through | host community | host community jobs in the |
procurement, wages | suppliers | mine value chain, comprising |
and SED spend, 51% of | • 496 employees | |
Group total | • 4,725 contractors | |
• 969 suppliers | ||
• 303 non-mining jobs |
Gold Fields - sponsored Huni Valley Health Centre
COVID-19
1 | Donations to government and/or industry |
response funds | |
2 | Direct support to NGOs, government and other |
organisations that seek to assist host communities | |
3 Awareness-raising in host communities
- Contributed US$444,000 to government's Covid-19 campaign.
- Two equipped ambulances donated to Tarkwa hospitals, at a cost of US$248,000.
- US$400,000 committed to supporting our employees and members of our host communities with the purchase of hand-held thermometers, sanitisers, goggles, face masks and other preventive equipment.
- Seven disinfection chambers (with hand-washing and full body sanitising) donated to Ga communities in Accra to support efforts by the Ga Traditional Council.
- Procured face masks from host community SME.
- National and local radio and TV education campaigns.
- Strong focus on community education and awareness drives.
- Host community Covid-19 ambassadors appointed.
Management in Ghana has implemented a robust Covid-19 response strategy to adequately contain infections and the spread of the virus at the workplace. The mitigation measures, ranging from screening to isolation, were strictly implemented and observed.
Strict adherence to government and Company protocols was also key, including contact tracing, testing and isolation, appointing host community Covid-19 ambassadors, and travel restrictions, among others.
The region also increased its isolation facilities from 25-bed capacity to 86-bed capacity, with two isolation centres located at Tarkwa and one at Damang. Extensive awareness campaigns on hygienic and social distancing protocols, and mandatory wearing of nose/face masks took place during the quarter.
A mass testing programme is running at all the mines with a private company, Lancet Laboratories, now performing most of the Covid-19 testing. A cell busing system was also implemented to contain the spread of infections on Company buses. Employees of the two major mining contractors and Gold Fields' employees commute to work on separate buses to minimise the impact on operations in the event of virus infections.
A new roster system was introduced at the mines. A four-two work roster requires employees to work four weeks and take two weeks off work. Previously, different rosters providing a maximum three days off a week were used.
Comorbid employees continue to work from home, as do the majority of Accra Office employees. Site employees whose work responsibilities permit them to work from home have been enabled to do so.
The region's Crisis Management Committee, established in March 2020, rolled out a Covid-19 Code of Practice to guide the effective implementation of measures instituted to help prevent, mitigate and manage infections at the workplace.
A ban on local travels and non-essential site visits is still in place.
Covid-19 cases at the mines escalated sharply in May and June, largely among our contractors, but have since declined sharply. The mines are operating without a major impact on production. To date, Gold Fields Ghana has spent approximately US$1.5m on programmes and infrastructure to deal with the pandemic.
COVID-19 COMMUNITY PROGRAMMES
Community support programmes and donations have been channelled via the Gold Fields Ghana Foundation. To date the Foundation has spent about US$300,000. Items funded and supplied to local clinics and community organisations include hand-held thermometers, sanitisers, face masks, protective gowns, goggles and other PPE. Gold Fields Ghana has also aired radio educational programmes on how to deal with Covid-19 and to prevent stigmatisation of those who have been infected. (See also adjacent graphic.)
Ambulances donated to Tarkwa hospitals
11
Gold Fields Report to Stakeholders 2019/2020
GHANA STAKEHOLDER REPORT CONTINUED
KEY SPENDING TRENDS
West Africa SED spend
CASE STUDY
Road infrastructure
The new 33km Tarkwa-Damang road
In the host communities of our Tarkwa and Damang mines, Gold Fields is not only the major employer, but over the years it has also been
a major funder and provider of infrastructure that benefits these communities. This is in addition to our investments in education, health, agriculture, as well as water and sanitation.
In particular Gold Fields Ghana has funded and build roads that provide well over 100,000 community members with easier transportation of people, goods and services, as well as boosted economic activities
in the area. Other socio-economic impacts include improved road safety, availability of pedestrian facilities such as bus stops, as well as reduction in dust pollution.
Since 2010, Gold Fields has upgraded over 81km of roads at a cost of over US$35m. Two of the projects have been completed over the past year. Firstly, a 15km section of the Awudua road at a cost of US$4.3m.
Secondly, and most critically, the restoration and tarring of the 33km road linking our Tarkwa and Damang mines and with it the Tarkwa- Nsuaem and Prestea Huni Valley municipalities. At a cost of US$27m this is Gold Fields' largest ever public infrastructure project in any of the countries in which we operate.
It is also a text book shared value project in that it not only makes a positive socio-economic impact on our communities, but also provides tangible benefits to Gold Fields. Since many of our Damang workforce resides in Tarkwa-Nsuaem, the upgraded road has reduced vehicle maintenance costs, improved road safety, reduced workers' travel time and fatigue, and improved overall employee wellbeing. The health-related benefits will also have positive impacts on productivity.
Primarily, it holds benefits to communities. A baseline study conducted by Gold Fields in 2017 found that communities along the corridor, such as Abosso, Bompieso, Amoanda, Huni-Valley, Kyekyewere, Nyamebekyere, Damang and others would be positively impacted by the reconstructed road.
Ghanaian contractors, who employed the vast majority of their workforce from the local communities, undertook the construction of the road. The Ghana Highway Authority will manage and maintain the road.
Gold Fields is involved in two other large infrastructure projects in Tarkwa: the reconstruction of the Tarkwa and Abosso stadium, as well as undertaking a comprehensive upgrade of the Apinto Government Hospital.
Key statistics
US$35m
Our investment in roads over the past 10 years
+100,000
Community members positively impacted
81km
of roads constructed
When completed, the stadium will seat 10,400 people, compared with the current seating capacity of 400. It will be able to host international matches and be the home ground of Medeama SC, the Tarkwa-based Premier League football team also sponsored by Gold Fields. In October Gold Fields renewed sponsorship of the team with a US$300,000 package to support their participation in the 2020/2021 Ghana Premier League and FA Cup competitions. The hospital will have a new medical hub with a fully equipped accident and emergency centre, a renal and dialysis centre, as well as an operating theatre. Gold Fields is investing approximately US$20m in these two projects.
The Gold Fields Ghana Foundation, which funds most of the community investment and infrastructure projects and programmes by the Company, has invested almost US$75m in host communities since its launch in 2004. Most of the infrastructure projects are undertaken in co-operation with government.
US$m 25
21
20
15 13
11
10
5 | 5.7 | 5 | |||
2016 | 2017 | 2018 | 2019 | H1 2020 0 |
West Africa SED spend by type 2019 (%)
3 3 | 2 | ● Education |
2 | ||
● Enterprise development | ||
17 | ● Health and wellbeing | |
● Charitable giving | ||
● Training |
73● Infrastructure
ENGAGEMENT WITH STAKEHOLDERS
2018 | 2019 | |||
Engagements - total | 55 | 337 | ||
Communities | 152 | 279 | ||
Governments | 50 | 93 | ||
Others | 2 | 71 | ||
Grievances | 49 | 30 | ||
12
Gold Fields Report to Stakeholders 2019/2020 | South Africa | |
SOUTH AFRICA STAKEHOLDER REPORT |
SOUTH DEEP MINE
SOUTH DEEP | ||
No of employees (June 2020) | 2,254 | |
No of contractors (June 2020) | 1,601 | |
Estimated size of impacted community | Westonaria - 112,000 | |
(2011) | Rand West - 160,000 | |
Gold production (2019) | 222koz | |
Life of mine | 2093 | South Deep sewing project |
Number of employees
Live in host community
HDSA % of management
222,1
67%
54%
WORKFORCE
PROFILE
H1 2020
23%
66%
73%
Women in workforce
Women in mining
HDSA % of workforce
OUR STAKEHOLDER CONTRIBUTIONS IN 2019
3,921
Total value contribution | Tax and royalty payments | Payments to suppliers and contractors | Employees, contractors |
US$290m | US$2m | US$187m | |
and non-mining jobs | |||
Host community | Host community employment | ||
procurement (% of total) | (% of total) | ||
28 | 65 | Salary and | |
In-country procurement | In-country employment | ||
wage payments | |||
SED spend | (% of total) | (% of total) | |
US$92m | |||
US$3m | 100 | 84 |
13
Gold Fields Report to Stakeholders 2019/2020
SOUTH AFRICA STAKEHOLDER REPORT CONTINUED
SOUTH AFRICA
South Africa host community Value 2019
3
38
43
- SED investment
- Employee wages
- Procurement spend
COMMUNITY VALUE CREATION
US$84m
in 2019
US$38m | 78 | 2,943 | ||||||||
host community | host community | host community jobs in the | ||||||||
procurement | suppliers | mine value chain, comprising | ||||||||
• 1,488 employees | ||||||||||
• 1,102 contractors | ||||||||||
• 208 suppliers | ||||||||||
• 145 non-mining job | ||||||||||
COVID-19
1 | Donations to government and/or industry |
response funds | |
2 | Direct support to NGOs, government and other |
organisations that seek to assist host communities | |
3 Awareness-raising in host communities
- South Deep as well as corporate office employees have made R17.6m in contributions to South Africa's Solidarity Fund, aimed at assisting government's Covid-19 mitigation programmes.
- R350,000 grant as part of mining industry's R4.7m donation of oxygen products to Eastern Cape clinics and hospitals.
- Paying SMME service providers and small-scale contractors approximately R22m during the mine's closure and maintenance period.
- Contributed food and necessities to homeless shelters feeding an average 135 poor households a day.
- Worked with a local SME Stitch Wise to produce 50,000 masks, which have been distributed in the community.
- Procured fabric face masks from local entrepreneurs in Thusanang and Poortjie to distribute in communities.
- Over 23,000 educational booklets and videos have been produced in four local languages and distributed to schools and community organisations.
- This is Gold community radio awareness and education campaign - joint effort by GFL and other West Rand mining companies.
- Strong educational drive on social media (some of the material was distributed in four local languages).
Since the beginning of March 2020, South Deep has implemented strict protocols to avoid and mitigate the impact of the pandemic on employees and contractors, as well as control potential Covid-19 cases at the mine. In March 2020, South Africa announced a level 5 lockdown for the month of April 2020, which forced the mine to operate only essential pumping services and other critical support functions.
All other activities were temporarily ceased.
At the end of April 2020, the lockdown level was eased to level 4. This allowed the mine to operate at 50% labour force capacity until the end of May, when all but vulnerable and foreign employees were allowed to return. Since then the lockdown levels have been gradually eased. However, with workers only slowly returning from neighbouring countries, and those with comorbidities still working from home, the mine has only gradually been approaching full capacity production levels.
For the mine to operate, it has to follow government departments' Standard Operating Procedures (SOPs) and Code of Practice (COP). The mine's own SOPs and COP have been aligned to these. South Deep continues to engage with the Minerals Council of South Africa to collaborate and share best practice within the industry.
The impact of Covid-19 on site is mitigated primarily through rigorous on-site screening and a contracted biochemical laboratory-testing regime. An employee self-declaration form, submitted via the WhatsApp social media platform, provides an access permit on successful completion and temperature monitoring.
The mine has purchased testing equipment which provides for about 80 tests a day with a 24 to 48-hour turnaround time on results. All employees who returned to work for the first time after the easing of lockdown level, were tested and isolated before they were able to return to work. Mine medical protocols provide for Covid-19 positive and
investigated cases to be quarantined at home or at the mine's isolation and quarantine facility managed by an external provider. A mine case manager monitors all cases and contact tracing.
Working protocols have been changed for all office staff and a rotational roster has been implemented to reduce contact and exposure to the virus for these workers. The shaft schedules have also been amended to ensure physical distancing in vertical transport of employees underground, with a limit of 80 employees per conveyance.
After an initial surge in Covid-19-positive employees and contractors, the number of active cases has reduced significantly and is currently in single digits.
Local community contributions range from donations to assisting local government in their anti-Covid-19 programmes. Some of the key projects and donations are listed in the adjacent graphic.
Operational costs incurred relate to PPE, sanitisers, medical supplies, testing equipment and kits, and alterations to buildings to set up the mines quarantine and isolation facilities are expected to be approximately R40m by the end of 2020. Gold production targets have been reduced by just under 10% for 2020.
14
Gold Fields Report to Stakeholders 2019/2020
SOUTH AFRICA STAKEHOLDER REPORT CONTINUED
CASE STUDY
Education for our host communities and labour sending areas
Key statistics
R258m
Commitment to human resource development in 2018 - 2022 SLP
R131m
Spend by the South Deep Education Trust 2010 to 2019
South Deep SED spend
US$m | ||||||
5.00 | ||||||
3.90 | 4.33 | |||||
3.49 | 4.00 | |||||
2.88 | ||||||
3.00 | ||||||
1.68 | 2.00 | |||||
1.00 | ||||||
0.00 | ||||||
2016 | 2017 | 2018 | 2019 | H1 2020 |
South Africa SED spend by type 2019 (%)
9
6
4 3
78
Since 2013, when Gold Fields unbundled the bulk of its South African gold mines into Sibanye Gold (now Sibanye-Stillwater), and only retained the South Deep mine in the country, skills development and training have been critical investments. South Deep, being a mechanised, bulk underground mine, requires a different skills pipeline to those of more conventional gold mines.
Underpinning our skills requirement is an investment in high school and university education facilities, as well as other programmes that equip learners to access higher institutions for further learning and, ultimately, to be considered for jobs at the mine.
Below are some of the key initiatives and projects South Deep and the independent South Deep Education Trust - established as part of the mine's BEE deal in 2010 - have launched over the years. Many of the programmes, which range from scholarships to bursaries, investments in tertiary institutions and physical infrastructure, are part of South Deep's mining licence requirement under its Social and Labour Plan (SLP). They are undertaken in partnership with government and other non-profit organisations:
- South Deep's Adult Education Training programmes, part of South Deep's SLP commitment, had a direct benefit for 2,618 participating learners from the workforce and our communities between 2010 - 2019 as they gain literacy and numeracy skills.
- South Deep partnered with the Bokamoso Community Trust to provide assistance to Grade 12 learners. To date 186 learners have gone through the programme, which has seen many of them improve their final matric results.
- The South Deep Education Trust has spent over R13m with the Edumap project, which helps matriculated students improve their Maths and Science marks so they can be admitted into universities. Since 2015, 154 students have rewritten their exams after a year with Edumap, with the majority of them improving their results.
- The South Deep spent R3.4m over two years on upgrading the historic Healdtown College in the Eastern Cape. During 2018 this investment assisted 186 students directly, while improving the infrastructure for future students.
-
In 2019, South Deep - in partnership with the provincial Department of Education local governments, Sibanye-Stillwater and the South Deep Education Trust - made progress on the technical and Vocational Education and Training (TVET) College to be built on
the West Rand with a focus on mining skills. Courses offered at TVETs are vocational or occupational by nature and increases the employability of the learners. Committed funds towards the construction of the college are over R25m excluding the land which has been donated by Sibanye-Stillwater.
- The South Deep Education Trust is also in the planning phase of funding an Early Education Centre in one of our host communities.
- South Deep and its partners, notably the Gauteng Department of Education, have also advanced the planning of the construction of the Simunye Secondary School near the mine. The project is set to benefit more than 1,200 learners and could cost as much over R100m to complete. Due to Covid-19, construction has been delayed.
- The mine is currently constructing a fully equipped Science Laboratory in one of the host community schools, with plans to hand it over by end-2020.
- Since 2010 Gold Fields has been a sponsor of the Mining School at the University of the Witwatersrand. In the latest of these programmes, South Deep committed a three-year, R6m sponsorship with a focus on furthering the academic knowledge of mechanised mining and rock engineering in South Africa.
- Some of the other initiatives in host community schools include donations of school shoes and books, starting food gardens in four of the schools, building ablution and sports facilities at one of the schools as well as conducting educational workshops.
- During Covid-19, South Deep has been donating facemasks and sanitisers to local schools and has been conducting educational and awareness campaigns.
- Economic diversification
- Health and wellbeing
- Conservation and environment
- Education and training
ENGAGEMENT WITH STAKEHOLDERS
2018 | 2019 | |||
Engagements - total | 471 | 445 | ||
Communities | 82 | 57 | ||
Governments | 112 | 131 | ||
Others | 277 | 257 | ||
Grievances | 7 | 5 | ||
15
Gold Fields Report to Stakeholders | 2019/2020 | Peru |
PERU STAKEHOLDER REPORT |
CERRO CORONA MINE
CERRO CORONA
No of employees (June 2020) | 368 | OUR STAKEHOLDER CONTRIBUTIONS IN 2019 |
No of contractors (June 2020) | 1,699 | |
Estimated size of impacted community (2018) | 15,100 | |
Gold production (2019) | 294koz (gold-eq) | |
Life of mine | 10 years | 898 |
Number of employees
Live in host community
Employee wages and benefits
368 | 12% | in workforce | |
Women | |||
25% | 43% | in mining | |
Women | |||
WORKFORCE | |||
PROFILE | |||
US$16m | H1 2020 | US$2,227 | Average training |
spend per employee | |||
Total value contribution | Tax and royalty payments | Payments to supplier and contractors | Employees, contractors | |
US$295m | US$60m | US$182m | ||
and non-mining jobs | ||||
In-country procurement | Host community | Investment in the country | ||
procurement (% of total) | ||||
(% of total) | US$5m | |||
15 | ||||
96 | Water infrastructure | Salary and | ||
Host community | in the District | wage payments | ||
procurement | ||||
of Hualgayoc | US$42m | |||
US$32m | ||||
192 | Host community | In-country | ||
workforce | employment | |||
SED spend | Number of host community | (% of total) | (% of total) | |
US$4.3m | 28 | 100 | ||
suppliers supported |
16
Gold Fields Report to Stakeholders 2019/2020
PERU STAKEHOLDER REPORT CONTINUED
PERU
Peru host community Value 2019
4
3
32
- SED investment
- Employee wages
- Procurement spend
COMMUNITY VALUE CREATION
US$40m
in 2019
US$32m | 192 | 898 |
host community | host community | host community jobs in the |
procurement | suppliers | mine value chain, comprising |
• 79 employees | ||
• 763 contractors | ||
• 56 non-mining jobs |
COVID-19
1 | Donations to government and/or industry |
response funds | |
2 | Direct support to NGOs, government and other |
organisations that seek to assist host communities | |
3 Awareness-raising in host communities
Funding of US$464,00
- Donations to central and regional governments and to institutions in the sector. Among these are the purchase of rapid tests, medicinal oxygen plant and donation of oxygen tanks.
- 500,000 Covid-19 testing kits donated as part of the mining industry's commitment to the government for distribution.
Funding of US$581,000
- Supplying medical equipment to provide care for patients hospitalised with Covid-19.
- Donated basic necessities to families in need.
- Sanitising streets.
- 15 oxygen concentrators to local health care centres.
- Oxygen plant to the town of Bambamarca, which will provide about 504 oxygen cylinders per week.
- Information and training for communities on the causes, prevention and control measures to avoid contracting Covid-19.
- Radio programme with prevention and self-care tips.
- Strong public education drive on social media.
Peru had high rates of Covid-19 infections and while mining has been declared an essential industry, strict intra-provincial and international travel restrictions were put in place and only gradually lifted from July onwards. Since March 2020, Gold Fields has implemented strict protocols to avoid and mitigate its impact on Gold Fields personnel and contractors, as well as to control the pandemic at the Cerro Corona mine in Peru.
In March a decision was taken to demobilise from the Cerro Corona mine and project sites all personnel with comorbidities and those older than 60. Full home office was implemented for all administrative and planning activities. Our regional offices in Lima and Cajamarca were shut down and working from home introduced. Cajamarca province, home to the Cerro Corona mine, has permitted buses and charter flights for our mining crews, subject to strict sanitary permits. The mine can operate 24 hours a day.
For Cerro Corona to be allowed to operate, the existing protocols require the full screening of incoming shift personnel before starting the shift change, as well as testing at the sites. The protocol is split into two stages. The first takes place at employees' homes, and the second upon arrival at the mine site. Both are conducted through the use of polymerase chain reaction (PCR) tests. People who test positive are reported to local health authorities and a demobilisation procedure is carried out, by which the worker is returned to his/her home, an authorised hotel, or a clinic/hospital, depending on medical advice.
Only people who test negative are permitted to board a flight and/or buses to the mine site. Given that tests are not always reliable, we also test our returning employees and contractors when they arrive on site, with the same protocols applying should the test results be positive. Employees are also tested at the end of their roster.
A new roster system was introduced at Cerro Corona to control any potential spread of the virus. The workforce has also been configured to operate in small groups (working cells of three to 13 people) to minimise mixing, so that, in the event of a positive case at the site, contact tracing is more effective. Only workers within the same cell are permitted to work together, to have meals together and to be in the same two-bed dormitory. These actions were in addition to the hygiene protocols, sanitisation and other educational programmes introduced at the mine.
Cerro Corona's Covid-19-related costs are expected to total US$12.5m for the year - equal to US$57/gold equivalent ounces. Additional costs include capex for new site facilities, such as dining rooms, PCR testing facilities, and charter flights
COVID-19 COMMUNITY PROGRAMMES
By end-September Gold Fields had made approximately US$800,000 in donations to communities and government organisations in the form of PPE, sanitation campaigns in communities, food and medical supplies, etc). Cerro Corona has also sponsored educational programmes on local community radio. The majority of our programmes were in our host communities and the Cajamarca province. We expect to spend a total of US$524,000 for the year. (See list of programmes in the adjacent graphic.)
17
Gold Fields Report to Stakeholders 2019/2020
PERU STAKEHOLDER REPORT CONTINUED
KEY SPENDING TRENDS
Peru SED spend
CASE STUDY
Water provision to Hualgayoc communities
Potable water has been supplied to many families in Hualgayoc
So far in 2020 we have commenced the following two key projects
Water provision to the city of Hualgayoc
Key statistics
- Investment of US$0.7m.
- How many people have received potable water: 4,000 Hualgayoquinos.
- The construction of the treatment plant and pipelines is set to commence in 2021. The total estimated cost of the projects is US$0.7m.
Water provision to farmers in the Hualgayoc district
Key statistics
- Investment of US$6m.
- How many farmers do the dams support: 5,000.
- How many reservoirs will be built: 2,000.
Our investments in water-related projects has been significant since 2010, well over US$5m. These are the largest project up until the end of 2019:
- Investment in three drinking water systems and approximately 101km of piping for Hualgayoc: US$1.3m.
- 10 new drinking water systems and associated pipelines in hamlets in the wider district: US$3.5m.
- In partnership with other organisations, 16 micro-reservoirs were constructed to help the district adapt to climate change impacts: US$440,000 (Gold Fields' contribution).
- Gold Fields is partnering with the Ministry of Housing to prioritise an investment of US$1.5m in two water and sanitation projects for the hamlets of La Tahona and La Cuadratura. These projects are ongoing and being funded under the Works for Taxes system.
To commence the project Gold Fields in October delivered machinery valued at more than US$1m. This will be used in the construction of the reservoirs so that farmers have efficient access to this valuable resource.
An agreement with the district for the handover of the land on which the municipal water infrastructure will be built has also been signed.
8.50 | US$m | |||||
9 | ||||||
8 | ||||||
7 | ||||||
6.19 | 6.03 | |||||
6 | ||||||
4.31 | ||||||
5 | ||||||
4 | ||||||
3 | ||||||
2 | ||||||
0.41 | ||||||
1 | ||||||
0 | ||||||
2016 | 2017 | 2018 | 2019 | H1 2020 |
Peru SED spend by type 2019 (%)
1 | 14 | ● Enterprise development | |
● Education | |||
5 | |||
9 | ● Conservation and | ||
environment | |||
405 ● Charitable giving
- Infrastructure
26 ● Training
● Health and wellbeing
ENGAGEMENT WITH STAKEHOLDERS
Over the years Gold Fields in Peru has implemented a number of initiatives as part of its commitment to improve the drinking water supply for the city of Hualgayoc, home to our Cerro Corona mine, and to strengthen the main economic activities of the district, such as agriculture and livestock. Since 2010, Gold Fields has provided over 1,300 households in Hualgayoc City and surrounding hamlets with potable water, with a further 1,000 due to receive access in terms of a project commenced this year.
Lack of water during Peru's dry season is a risk to economic activities based on agriculture and animal husbandry in the Hualgayoc district. At the same time, many of the estimated 15,100 residents in Hualgayoc still do not have access to potable water. They also have past experiences of water pollution by other miners in the area.
These projects are part of our strategy to maintain our social licence to operate and further strengthen our reputation in the Cajamarca province and Peru in general, where many mining companies have experienced water-related conflicts with their host communities.
The mayor of Hualgayoc noted that without the authorities and companies working together, there could be no progress, while the construction of the reservoirs would also contribute to the sustainable development of the district.
We meet regularly with our communities and local government to engage on water and other socio-economic-related issues. During 2019, 12 social-environmental workshops took place during 2019, where 320 people from our direct area of influence shared information on our water management and care practices, among others.
2018 | 2019 | |
Engagements - total | 317 | 585 |
Communities | 11 | 24 |
Governments | 272 | 421 |
Others | 34 | 140 |
Grievances | 69 | 37 |
18
Gold Fields Report to Stakeholders 2019/2020
CHILE STAKEHOLDER REPORT
Chile
SALARES NORTE PROJECT
Exploration drilling at the Salares Norte project
COVID-19
CASE STUDY
Educational support and skills development for local students
Key statistics | ||
Number of pupils impacted | Laptops donated | |
550 | 236 |
The government has identified our Salares Norte project in the Atacama province in northern Chile as one of the 13 critical projects for the economic reactivation of the country and the region after Covid-19. Skills development in the region is key to that.
In the last three years, students at the Manuel Magalhaes Medling High School of Diego de Almagro - at 180km from site the closest impact community - have participated in
SALARES NORTE | |
No of employees (June 2020) | 131 |
No of contractors (June 2020) | 420 |
Estimated size of host community | Diego del Almagro 18,664 |
Status of project | Construction to |
commence Q4 2020 | |
Life of mine | 13 years (estimated start |
of production Q1 2023) |
Chile has had high rates of infections and while mining has been declared an essential industry, strict intra-provincial and international travel restrictions were put in place. Gold Fields has implemented strict protocols to avoid and mitigate its impact on Gold Fields personnel and contractors. The protocols require full PCR tests at home in the week employees and contractors are scheduled on site. Only negative cases are permitted to bus to the project site and once at the project, all workers are directed to working cells specific to the jobs
they perform. Our offices in Santiago, Copiapó and Diego de Almagro were closed and working from home introduced.
While Gold Fields has made no direct donations to government, Salares Norte expects to spend about US$400,000 during 2020 to assist communities and local authorities in fighting the pandemic, including donations of equipment and PPE to the local hospital in Copiapó, as well as sanitisation campaigns in the city.
technical visits to the project, have attended workshops by geologists and other professionals and have been able to do their technical practice. We are working together with the administration of the high school to update its educational content with a focus on metallurgy, mining extraction and geology.
The programme begins with technical visits to the project. All participants undergo a series of medical examinations to ensure that they can operate at 4,500m above sea level. The Salares Norte team gives them a tour of the site, an overview of the project and answer any queries the students have.
Number of | 131 | 27% | Female | |
employees | employees | |||
Live in host | 29% | 19% | Women | |
community | in mining | |||
WORKFORCE | ||||
PROFILE | ||||
Employee wages | US$4m | H1 2020 | US$50 | Average training |
and benefits | spend per employee | |||
OUR STAKEHOLDER CONTRIBUTIONS IN 2019/2020
Direct support to NGOs,
1 government and other organisations
2 | Awareness-raising in host |
communities |
- Distribution of medical supplies and basic food baskets.
- Sanitisation of Diego de Almagro streets.
- Laptops, PCs for local schools.
- Bio-safetyequipment to Atacama University.
- Local supplier programme.
- Internal communication to staff.
- Engagement with communities.
- External releases.
Additionally, technical practices, which are a requirement for completion of the degree, are promoted. To date,
66 students have taken part in this initiative, which is now a requirement for completion of the degree. While some may join Salares Norte in future, this training has improved their job preparedness in general.
Furthermore, Salares Norte provided 236 computers to students from the most vulnerable families in the community so they can continue studying from home during Covid-19.
ENGAGEMENT WITH STAKEHOLDERS
539 | 3 | 2,700 | |
Employees, | Number of | Jobs at peak | SED spend |
contractors and | indigenous | construction | (H1 2020) |
non-mining jobs | peoples' | (mid-2021) | US$300,000 |
(June 2020) | agreements |
US$860m
Cost to build the Salares Norte mine
11% Host community procurement (% of total)
US$3m
Host community procurement
2018 | 2019 | |||
Engagements - total | 162 | 137 | ||
Communities | 50 | 38 | ||
Governments | 82 | 69 | ||
Others | 30 | 30 | ||
Grievances | 0 | 0 | ||
19
Gold Fields Report to Stakeholders 2019/2020
ADMINISTRATION AND CORPORATE INFORMATION
COMPANY SECRETARY | Gold Fields Limited |
Anré Weststrate | Incorporated in the Republic of South Africa |
Tel: +27 11 562 9700 | Registration number 1968/004880/06 |
Mobile: +27 83 635 5961 | Share code: GFI |
e-mail: anre.weststrate@goldfields.com | Issuer code: GOGOF |
REGISTERED OFFICE | ISIN: ZAE 000018123 |
INVESTOR ENQUIRIES | |
Johannesburg | |
Gold Fields Limited | Avishkar Nagaser |
150 Helen Road | Tel: +27 11 562 9775 |
Sandown | Mobile: +27 82 312 8692 |
Sandton | e-mail: avishkar.nagaser@goldfields.com |
2196 | Thomas Mengel |
Postnet Suite 252 | Tel: +27 11 562 9849 |
Private Bag X30500 | Mobile: +27 72 493 5170 |
Houghton | e-mail: thomas.mengel@goldfields.com |
2041 | MEDIA ENQUIRIES |
Tel: +27 11 562 9700 | |
Fax: +27 11 562 9829 | Sven Lunsche |
OFFICE OF THE UNITED KINGDOM SECRETARIES | Tel: +27 11 562 9763 |
Mobile: +27 83 260 9279 | |
London | e-mail: sven.lunsche@goldfields.com |
St James's Corporate Services Limited | TRANSFER SECRETARIES |
Suite 31, Second Floor | |
107 Cheapside | South Africa |
London | Computershare Investor Services Proprietary Limited |
EC2V 6DN | Rosebank Towers |
United Kingdom | 15 Biermann Avenue |
Tel: +44 20 7796 8644 | Rosebank |
Fax: +44 20 7796 8645 | Johannesburg |
e-mail: general@corpserv.co.uk | 2196 |
AMERICAN DEPOSITORY RECEIPTS TRANSFER AGENT | Private Bag X9000 |
Saxonwold | |
Shareholder correspondence should be mailed to: | 2132 |
BNY Mellon Shareowner Services | Tel: +27 11 370 5000 |
PO Box 30170 | Fax: +27 11 688 5248 |
College Station, TX 77842-3170 | United Kingdom |
Overnight correspondence should be sent to: | |
Link Asset Services | |
BNY Mellon Shareowner Services | The Registry |
211 Quality Circle, Suite 210 | 34 Beckenham Road |
College Station, TX 77845 | Beckenham |
e-mail: shrrelations@cpushareownerservices.com | Kent BR3 4TU |
England | |
Phone numbers | Tel: 0871 664 0300 |
Tel: 888 269 2377 Domestic | Calls cost 12p per minute plus your phone company's access charge. |
Tel: 201 680 6825 Foreign | If you are outside the United Kingdom, please call +44 371 664 0300. |
SPONSOR | Calls outside the United Kingdom will be charged at the applicable international rate. |
The helpline is open between 09:00 - 17:30. Monday to Friday excluding public holidays in England and Wales. | |
J.P. Morgan Equities South Africa Proprietary Limited | e-mail: shareholderenquiries@linkgroup.co.uk |
Website
WWW.GOLDFIELDS.COM
Listings
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SIX: GOLI
CA Carolus° (Chair) RP Menell° (Deputy Chair) NJ Holland*• (Chief Executive Officer) PA Schmidt• (Chief Financial Officer)
A Andani#° PJ Bacchus° TP Goodlace° C Lettonˆ° P Mahanyele-Dabengwa* SP Reidˆ° YGH Suleman°
ˆ Australian * British # Ghanaian
° Independent director • Non-independent director
20
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Gold Fields Ltd. published this content on 19 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 19 October 2020 13:19:05 UTC