• Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Index & Interview Directory
04 Section 1: Introduction
05 The Road to Recovery
06 ABSA Group Interview
07 PwC Interview
08 Regional Trends
09 Sustainability & ESG Gaining Momentum
10 SRK Consulting Interview
11 Nafasi Water & ZN Geo Services Interviews
12 Section 2: Production, Development and Exploration
13 Precious Metals
14 Gold Fields Interview
15 Harmony & Pan African Resources Interviews
16 Base and Energy Metals
17 Lepidico Interview
18 Trevali Mining Interview
19 Orion Minerals Interview
20 Vedanta Zinc International Interview
21 Kumba Iron Ore Interview
22 Diamonds
23 Lucara Diamond Interview
24 Debswana Interview
25 Section 3: South Africa
26 South Africa
27 Ministry of Mineral Resouces and Energy SA Interview
28 Minerals Council SA Interview
29 Seriti & Exxaro Resources Interviews
30 NSDV & ENSafrica Interviews
31 Insights on South African Mining Industry's Health
32 Section 4: Namibia
33 Namibia
34 Chamber of Mines Namibia Interview
35 RMB & Standard Bank Namibia Interviews
36 Walvis Bay Salt Holdings Interview
37 Insights on Namibia as a Mining Investment Destination
38 Section 5: Equipment and Services
39 The Journey to Modern Mining
40 Murray & Roberts Interview
41 Kal Tire Interview
42 Eazi Access Interview
43 METC Engineering Interview
44 Insights on Digital Mining Revolution in Africa
45 MEMSA Interview
46 Fabchem Mining Interview
47 Insights from Local Manufacturers
48 Energy
49 juwi Interview
50 Engie Impact & Vivo Energy Interviews
51 Howden Interview
52 Section 6: Sponsored Company Profiles
53 Trevali Company Profile
54 Murray & Roberts Company Profile
55 Concluding Remarks
56 Credits

Martin Preece, Executive Vice President South Africa,

GOLD FIELDS

"In South Africa we continue to invest in our South Deep mine as we improve efficiencies and returns."

What was South Deep’s production performance in 2020 amid the pandemic? What is your guidance for 2021-2022?

After a good start to 2020, South Deep was placed on care and maintenance for the first four weeks of Q2 2020 in compliance with government-imposed Covid restrictions. South Deep continued to operate well below its full labour complement for the remainder of Q2 2020.

Despite this, gold production increased by 2% to 227,000 oz from 222,000 oz in 2019. Had it not been for Covid disruptions, South Deep would have exceeded its original production guidance of 257,000 oz.

Encouragingly, South Deep generated net cash-flow of R558 million (US$34 million) in 2020, more than double the R221 million (US$15 million) recorded in 2019. Gold production for 2021 is guided at 280,000 oz. Looking beyond 2021, we are optimistic that a further 20% – 30% can be added to production levels over the next four years.

What changes did South Deep introduce to enhance operational efficiency?

The improvements were the result of several initiatives the mine implemented following the restructuring at the end of 2018, principally the Siyaphambili intervention, which continued to bear fruit in 2020. This is a middle management and supervisory leadership program focusing on building the capacity and capability of our middle managers and front-line supervisors. The Siyaphambili intervention also includes a Maintenance Improvement Program focusing on improving the reliability and effectiveness of our fleet.

The mine's overall productivity improved to 303 tonnes per employee in 2020 from 286 tonnes per employee in 2019.

Can you elaborate on your solar plant investment at the South Deep mine?

The estimated capital investment for the plant is R660 million, including contingencies and escalation. This will be funded from the mine’s positive cash-flows over the next two years. The unsustainable tariff increases and unreliable supply of electricity from Eskom is a major risk for all mining companies. Once completed, the solar plant has the potential to provide around 22% of South Deep’s average electricity consumption, translating into a cost saving of roughly R120 million per year and reducing our carbon footprint by 100,000 tonnes per year from 490,000 tonnes to 390,000 tonnes.

The solar plant will further enhance the sustainability of South Deep, resulting in stakeholders benefiting more from the mine’s activities for longer.

Could you outline the extent to which you rely on automated and remote equipment and machinery at South Deep?

The adoption and successful deployment of technology and remotely operated equipment is an imperative for South Deep as it will give us an opportunity to leverage a step change in our safety and health performance, our productivity, and allow us to unlock a fuller operating window as a result of not being delayed by current shift change arrangements. South Deep currently makes extensive use of line of sight remotely operated Load, Haul Dump Loaders (LHDs) for loading in unsupported long hole stopes. Long hole stopes make up approximately 60% of the ore mined.

As we build on this capability, South Deep has converted underground impact breakers to function tele-remotely, operated from our surface control center. We have also successfully deployed a non-line of sight tele-remote LHD, also operated from the surface Control Centre, and are currently commissioning a second machine to expand this capability. The LHD is fully automated except for the loading activity that that is still performed by the operator from the surface operator station. This capability will be expanded to our underground truck fleet that will operate in separate haulages.

Can you elaborate on Gold Fields’ investment plan in Africa in the upcoming years?

Gold Fields is investing significantly in its African operations. We have spent over US$340 million on our Damang mine in Ghana over the past few years and have also acquired a 45% stake in the Asanko mine in Ghana in 2019. In South Africa we continue to invest in our South Deep mine as we improve efficiencies and returns. As such we do not envisage further capital investments in the region beyond annual sustaining capital expenditure. Having said that, the gold market is very dynamic at the moment and it would be remiss of us not to be alert to potential M&A opportunities on the continent that could add shareholder value.

Next:

Interviews: Harmony & Pan African Resources