South Africa RegionSouth Africa Region
Overview
Gold Production and NCE Margin (2008 – 2011)koz %
162 500
Durban
Bloemfontein
JohannesburgSouth Deep
KDC Pretoria
Beatrix
2 066 2 0958101214
1 000
1 500
2 000
Cape Town
Durban 2,066 2,095 1,866
0246
0
500
1 000
2008 2009 2010 2011E
NCE Margin9 months to Sept (%)
Mineral Reserves & Resources31 Dec 2010 (Moz)
EBITDA1 (Group Contribution)9 months to Sept 2011 (%)
2008 2009 2010 2011ENCE MarginProduction
18%
Incl South Deep Excl South Deep
169.3
-2%
10%7%
18%60.2
Reserves Resources
Sept 2010 Sept 2011
98
______________________________________1. Attributable EBITDA
Multi-shaft underground complexes
KDC Beatrix South Deep
Formed in 2010 from Driefontein Shallower, safer, steadier 34.5Moz reserve and >50 years of
(West) and Kloof (East) life
Large, challenging, complex and
deep ore body
Well capitalised, consistent
performer
Safer, mechanised mining
Produced 175Moz in the last 60
years and still has ~20Moz reserves
remaining
5.4Moz reserve (~15 year mine life) Mine design that has cracked the
deep level bulk mining code
g
Established infrastructure Important contributor to the South
Africa region
Potential to get to mechanised
production of 750kozpa
99
Since 2007 significant progress on safety but 2011 has levelled off
Fatalities1 Serious Injuries1
# fatalities # serious injuries
35
40
800
900
1000# fatalities # serious injuries
25
30
600
700
800
15
20
300
400
500
5
10
100
200
300
0
2005
2006
2007
2008
2009
2010
2011
YTD
0
2005
2006
2007
2008
2009
2010
011Y
TD
2 2
100
______________________________________1. Calendar years 2005 - 2010
Redoubling efforts to achieve zero harm...
• Compliance
• Engineer out risk
• Aligned stakeholders• Health & wellness
o ha
rm
• Culture: Hearts & minds
oal:
Zero
G
101
...through numerous initiatives
Aligned Culture: Hearts Health & Engineer out Compliancegstakeholdersand Minds wellness
grisk Compliance
Increased frequency of
Underground transport safety
Leadership communication
Holistic approach to well-being –
Engagement with unions and frequency of
safety audits
Priority Misconduct Unit fast tracks action
transport safety systems
In-stope roof bolting programme
communication and commitment
Culture transformation founded on safety
to well being “24 hours in the life of a Gold Fields employee”
unions and government
Strengthening a collaborative approach on fast tracks action
on safety transgressions
Increased focus
programme
Mine layouts and designs
Seismic task
founded on safety as prime value
Safe production focus groups to
approach on safety
on safe production from line supervision
Seismic task teampromote
involvement of all employees
Visible felt leadership
102
South African production in decline, plans in place to arrest this
2 500B t i KDC S th D
Production (‘000oz) South Africa Region production (‘000 ounces)
2 000
Beatrix KDC South Deep
1 500
KDC accounts for >90% of the decline since 20091 000
KDC accounts for >90% of the decline since 2009
500
02008 2009 2010 2011E
103
Decline due to reduced mineable face length at KDC
% Change(9 months to Sept 2010 vs 9 months to Sept 2011)
Gold -11%=
Overall gold down 11% driven by
− Reduction in face length worked
− Decline in grade
(9 months to Sept 2010 vs 9 months to Sept 2011)
Grade (cm.g/t) -3%
=
x
g
Mine call factor has been stable
Overall productivity maintained despite unplanned
MCF (%) +5%
SQM/ crew 0%
x
stoppages
Reduced workplace availability resulting fromSQM/ crew 0%
Work places -11%
x− Historical suspension of development in favour of secondary
support (to make safe)
− Closure of high risk pillars and reduction of extraction ratios for pg p
safety reasons
104
Plan to stabilise KDC between 250-275koz per quarter
Major investments in developing a safety culture
Business Process Re-engineering Programme (BPR)
− Shaft Full Potential (SFP) programme that is already delivering
− NCE management helping to mitigate cost inflation in 2011NCE management helping to mitigate cost inflation in 2011
Focus on surface mining (“Python” technology)
Upgrading skills within rationalised KDC structure
105
Shaft Full Potential programme: two fundamental drivers
Back to basics...
Focus on accelerating off and on reef
Increasing ‘work place availability’‘Full potential’ crew productivity
Launched several pilots - already having development
- Realising full potential from mechanised rigs on flat ends
a positive impact
- Continuous blastingrigs on flat ends
- Pro-active management of the pipeline to create mineable faces
- Face advance initiative
- Improved MCF
- 1 to 2 year programme to restore face length position
Improved MCF
- Increase face time
- Labour optimisation initiative
106
Our cost reduction program has helped offset inflation
SA Region Net Cost (R million)
R838 million of cost reductions have
helped contained cost escalation belowhelped contained cost escalation below
inflation
− Wage rates ~9%
− Electricity ~27%
Further cost savings identified
KDC production holding steady in 2011
KDC average monthly production (‘000 ounces)
Moving closer to 2010 levels
123 121120
140
101
87 90 92100
60
80
40
0
20
107
2008 2009 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011E
~5Moz surface opportunity at KDC
RD V6#
KDC and South Deep Surface Resources
RDV5#
RD V2#
RD 2Vent#
Tailings Storage Facilities:
~4.1Moz gold (~418 Mt @ KDC West
RD 13
RD 8 & 9
RD 10
RD L10#
g ( @
0.3g/t)
S f R k D
South Deep
RD 5
RD 6
RD 7RD 11
RD 12
RD 14
RD HW#
RD KM# RD SD
Surface Rock Dumps:
~0.6Moz gold (~30Mt @
0.6g/t)RD 14 RD K4#
RD K7#
Rock Dumps
TSF KDC East
108
Surface mining underpins KDC production profile
KDC surface production de-risked by processing tailings and rock dumps
Requires acquisition of new plant and conversion of existing ones
200• Migrate surface rock dump processing to mobile
plant (Python) through acquisition of second unit1
Forecast Production 2011E – 2020E (‘000 ounces)
150
TSF conventional plantPython plant (SRD)Conventional plant (SRD)
100
1
2
50
CurrentPlant
02011 2012 2013 2014 2015 2016 2017 2018 2019 2020Adapt conventional plants to re-processing of
tailings
Plant
2
109
Exploring alternative options for KDC
KDC West KDC East
2 plants;5 operating
h ft
D10D7
D8
D23 l t
K3K8
shafts
D5D4D1
3 plants;7 operating
shafts
EBA
K7
Plant
Tailings dam
Operating shaftLegend
1. Bring forward valuable ounces2 R i i i d b ti h ft t h l i ti d ti i i f t t2. Review mining areas served by operating shafts to enhance logistics and optimise infrastructure
Margin ahead of reserves
110
Margin ahead of reserves
Beatrix continues to provide predictable stable production
Beatrix production profile (‘000 oz)
A cash generator: R525m free cash flow generated in 9 months to September 2011
500
Consistent stable production from shallow
orebody
N i ifi i i i k
Beatrix production profile ( 000 oz)
300
400 No significant seismic risk
Well capitalised with no major investment
i d
200
300required
Pioneered carbon trading through methane
capture
100
capture
Remains a key part of strategy going
forward0
2008 2009 2010 2011E
forward
111
South Deep – flagship project in the region
Massive ore body: 34.5Moz reserve (>50 years of life)
World class reserve well understood Forecast production build-up (koz)
700800
High tech, safer, mechanised bulk mining
Mine design that has cracked the deep level bulk 300400500600700
mining code
Ramp up to 700koz run rate end 2015 (steady state
full production over life 700koz to 750koz per year)0
100200300
2011E 2012E 2013E 2014E 2015Efull production over life 700koz to 750koz per year)
Major progress on key infrastructure: on budget and on time2010 2011E 2012E 2013E 2014E 2015E Status
2011E 2012E 2013E 2014E 2015E
2010 2011E 2012E 2013E 2014E 2015E Status94 Level Refrigeration Plant CommissionedTwin Vent Shaft Deepening On-trackTailings Storage Facility CommissionedTailings Storage Facility CommissionedPlant Expansion On-trackBackfill Infrastructure On-trackNew Mine Development On goingNew Mine Development On-going
112
Ventilation shaft deepening
80% complete on budget and on time; commissioning planned July 2012
113
80% complete, on budget and on time; commissioning planned July 2012
Ventilation shaft equipping & headgearHeadgear A-Frame early lift strategy
Completed in May 2011
Rock winder installation progressing to plan – all major components manufactured and delivered to the mine
114
Tailings storage facilityReturn Water Dam – lining complete in No.2 TSF – tailings deposition to cover the toe drains is in progress
Pump station
No.1 No.2
Pump station
Return Water Dam – compartment No.2 being filledPenstock - returning water to fill the return water dam
115
Backfill infrastructure
Full Plant Tailings – Backfill plant under construction at South Shaft
116
Plant expansion
450ktpm downstream processing capacity
Leach extension earthworksElution earthworksLeach extension earthworks Elution earthworks
330ktpm milling capacityThickener earthworks
Thi k th k
117
Thickener earthworks
Mining philosophy
Mining a massive orebody at depth
De-stress mining Backfilling
Large backfilled
stope
MechanisationMechanisation
118
Combined mining methods
3D View of planned mining
Drifts
Long hole t istoping
Drives
De-stress Stope Drives
De-stress Stope Access Drives
119
Drives
De-stress accelerating, being de-risked with more access points
Enhanced understanding of the ore
South Deep De-stress mining (m2) Enhanced understanding of the ore
body, logistics, and skills required
8 000
Increasing number of access points in
place to lower delivery risk
6 000
place to lower delivery risk
Mining methodology proven; seismicity
4 000
managed and under control 2 000
Strengthened leadership team with
enhanced trackless mining skills0
Q3 2010
Q4 2010
Q1 2011
Q2 2011
Q3 2011
Q4 2011 E
120
South Africa Region: the way forward
Targeting stable production of 250-275koz per quarter from KDC− On-going optimisation− Surface mining to de-risk production profile− Numerous options under review
Steady consistent production from Beatrix
Ramp up at South Deep Ramp-up at South Deep
Critical enablers:− Safety performance− Continued focus on BPR to manage costs and NCE
Focus on people
121
Sustainable steady state production
South Deep ramp-up
~ 2Moz
Beatrix stable at ~350kozpa
ramp-up 700koz run-rate by end 2015
Beatrix~355koz
~ 1.7Moz
KDC stabilised at 1 to 1.1Moz*South Deep
~280koz
KDC~1.1Moz
Current 2015 Target
123122
_________________________* Anticipated annual production over next 3 to 5 years