Gold Fields

Integrated
Annual Report

2018

 
 
 

Currently viewing: Innovation and technology / Next: A fit-for-purpose workforce

Our business

Innovation and technology

We need to operate as a low-cost gold producer in order to achieve our free cash-flow margin target. To this end we have set ourselves a medium-term aspiration of AIC of approximately US$900/oz by 2020. We need to do this within the context of a number of industry-wide challenges that include longer discovery to development times, a fall in average gold grades and a gold price that has declined around 30% since September 2011.

Advances in innovation and technology provide an opportunity for gold miners to digitise and automate their operations, which will help increase levels of efficiency, reduce costs, improve safety and further mitigate environmental impacts.

Gold Fields' I&T strategy has five key objectives:
1. Grow reserve life: reduce discovery cost and cycle time from discovery to development handover
2. Sustain and grow cash margin: improve operational efficiencies to sustain cash margin by the use of automation, information, integration and innovation
3. Implement a future operating platform: develop a fully connected mine with a manufacturing culture of collaboration and innovation
4. Improve health and safety: distance people from active mining areas
5. Maintain social licence to operate: reduce mining waste/tailings and emissions

To guide the delivery of these objectives, clear execution principles have been defined, and the strategy will be selectively applied at each mine based on relevance and robust business cases. Other principles include that only proven technology will be deployed, a "fast follower" approach will be used and each region will have its Innovation and technology champion.

We are following a staged approach that will progressively move our operations through the phases of modernisation, integration and ultimately automation, when appropriate and within strict cost parameters. These stages have been broken into three "horizons".

  • Horizon 1 – Modernisation phase: foundations are put in place to support the use of future technologies. This involves:
    • Increasing the use of sensors to improve the data we receive from our machines
    • Upgrading our data backbone to allow our IT systems to efficiently manage higher volumes of data
    • Pulling data from all areas onto an integrated platform to enable more effective operational decisions
  • Horizon 2 – Transformation phase: completing the integration and optimisation of our data and systems and developing an innovative culture. This will allow us to develop a single, real-time view of all operating aspects of a mine, which in turn enables more flexible and responsive production planning and scheduling, all of which can be managed from remote operating centres. To be successful and sustainable, the mine of the future needs to be supported by new ways of working and a culture of innovation – building this culture is an additional area of focus during Horizon 2
  • Horizon 3 – The Gold Fields mine of the future is delivered during this horizon, when and where appropriate. A new level of productivity and safety is achieved through automation, robotics and autonomous operations that are connected through remote sensors
GOLD FIELDS' INNOVATION & TECHNOLOGY STRATEGY

Progress to date

During 2018 we advanced a number of important Horizon 1 projects:

  • Fibre networks were installed underground and in some mining pits - these lay the foundation for connecting people and machinery at the face to employees and systems on-surface
  • At Granny Smith we trialled new technology to improve the precision alignment of drills, and increased the number of tele-remote systems that control machinery at both this operation and St Ives
  • Drones were deployed at Tarkwa and Damang to conduct surveying by remote
  • Cerro Corona rolled out new fleet management software
  • Granny Smith, South Deep and St Ives improved their people and equipment tracking systems which are designed to improve man-machine interface safety.

Looking ahead

In the year ahead, each Region will define the operating platform, systems and technology required to achieve the strategic goals of Horizon 2, thereby laying the platform required for digital mining. These plans will also outline the technical design, resources, skills, funding and training required to support the successful roll-out of I&T projects at each site. Furthermore, the regions have been asked to bolster their I&T resources, appoint an I&T lead and roll-out workforce communication on their I&T programmes. Around US$9m has been set aside for I&T projects during 2019.

In the longer term, Gold Fields is working with the ICMM on a plan to make mining vehicles cleaner and safer. Under the Innovation for Cleaner Safer Vehicles (ICSV) programme, the ICMM is working with leading truck and mining equipment suppliers to accelerate innovation and develop a new generation of mine vehicles. The programme aims to:

  • Introduce greenhouse gas emission-free surface mining vehicles by 2040
  • Minimise the operational impact of diesel exhaust by 2025
  • Make collision avoidance technology available to mining companies by 2025

Gold Fields CEO Nick Holland is one of three ICMM member CEOs on the ICSV advisory council.