Value creation for our stakeholders
The sustainability of our operations depends on mutually beneficial relationships with our key stakeholders. We therefore focus on constructive, transparent and open engagement which, we believe, will create enduring value for our stakeholders and the Company. Statistics on the creation and distribution of economic value provide a basic indication of how Gold Fields generated wealth for stakeholders. Gold Fields adopted the World Gold Council guidelines on disclosing national economic contributions by applying Group-wide value delivery at both the national and host community level.
Total and national value distribution by region and type 2021 (US$m)
| Employees | SED spend1 | Capital providers |
Business partners |
Governments | National value distribution |
|
| Australia | 154 | 1 | 7 | 902 | 206 | 1,269 |
| Peru | 41 | 5 | 3 | 205 | 61 | 315 |
| South Africa | 110 | 22 | 3 | 292 | 33 | 408 |
| West Africa | 93 | 9 | 535 | 701 | 248 | 1,103 |
| Corporate | 66 | — | 388 | 1 | 40 | 495 |
| Total Gold Fields | 4634 | 16 | 454 | 2,101 | 558 | 3,591 |
| 1 | Socio-economic development spend in host communities |
| 2 | Includes US$1m from the South Deep trusts |
| 3 | South Deep has carry-forward losses and allowances for offset against taxable income |
| 4 | Excludes benefits paid to employees working on capital projects |
| 5 | This amount includes US$51m in dividends paid/declared to the Ghana government in lieu of their 10% shareholding in the Tarkwa and Damang mines |
Number of engagements in 2021: 817 (2020: 658)
Payments include
procurement, employee wages and investment in SED.
US$16minvested in SED
US$709mspent on host community procurement
US$147mspent on host community employee wages
Total: US$872m
Key concerns and expectations
- Employment and procurement opportunities
- Skills and enterprise development
- Mitigation of adverse environmental impacts
- Community investments
- Assisting with Covid-19 initiatives and programmes
- Benefit-sharing agreements
- Protection of heritage sites
Value created for host communities in response to their key concerns and expectations
- Rolled out Shared Value projects and host community initiatives, maintaining the percentage of value distributed to host communities at 28% of total value created by Gold Fields
- Created jobs and business opportunities through host community procurement
- Unlocked opportunities for host community employment in the mines, their contractors and suppliers, their suppliers, and non-mining sectors
- Invested in integrated community development, including health and wellbeing, environment and infrastructure
- Expanded skills base in host community by unlocking education and training opportunities
- Negotiated agreements with host communities and Indigenous Peoples
How we supported our communities during Covid-19
- Funded government and industry response funds
- Rolled out community vaccination campaigns
- Donated medical equipment to local hospitals and clinics
- Distributed personal protective equipment to host communities
- Distributed food to vulnerable people
- Donated sanitising materials and equipment to local government to curb the spread of Covid-19
- Launched radio and television campaigns to raise awareness and dispel myths around the virus
Payments include
salaries and wages, benefits and bonuses.
US$463mpaid in salaries and benefits
9,330host community workforce
54%host community employment
87%in-country employment
Key concerns and expectations
- Learning and development
- Performance management
- Competitive remuneration and benefits
- Gender pay parity
- A diverse, inclusive and enabling culture with opportunities for innovation
- A workplace culture that is physically and psychologically safe
- A company that is ethical and sustainable
Value created for employees in response to their key concerns and expectations
- Paid competitive salaries with a strong performance-based component
- Optimised business processes and operational efficiencies
- Continued to implement modern working practices to facilitate greater work-life balance
- Cultivated a stringent safety and health culture with a focus on wellbeing
- Increased employee diversity
How we supported our employees during Covid-19
- Paid all our employees their base salaries
- Provided testing and quarantine facilities
- Enabled office and administrative staff to work from home during Covid-19 high alert times
- Enabled older employees and those with comorbidities to work from home at all times
- Instituted flexible working arrangements
- Reduced international and regional travel
- Implemented standard operating procedures as employees returned to offices
- Imposed mandatory social distancing, sanitation and mask-wearing practices at our sites and offices
- Established a dedicated Covid-19 information portal
- Developed and encouraged vaccination rollout and uptake
- Offered mental health support programmes
Capital providers
Number of engagements in 2021: 468 (2020: 508)
Payments include
interest and dividend payments.
US$454mpaid to the providers of debt and equity capital
Reduced net debt byUS$100m
Key concerns and expectations
- Sustainable returns on investment
- A strong balance sheet
- Execution of Gold Fields' strategy
- Sound and ethical leadership
- Succession planning for executive management
- Alignment with key ESG priorities
- Delivering our growth projects on time and within budget
Value created for host communities in response to their key concerns and expectations
- Developed and maintained a strong portfolio of mines
- Delivered the continued improvement at South Deep
- Construction of Salares Norte in time and within budget
- Continued life extension of our Australian operations
- Identified and appointed new CEO
- Continued to fund the development, maintenance and growth of our operations
- Improved share price and increased dividends
- Reduced net debt and maintained strong balance sheet
How we supported our communities during Covid-19
- Limited the impact of the pandemic on our operational performance
Business partners (contractors and suppliers)
Payments include
operations and capital procurement.
US$2,101mpaid to suppliers and contractors
31%of mine operational and capital spend (excluding utilities) is with host community firms
Key concerns and expectations
- In-country and host community procurement of goods and services
- Investment in enterprise and supplier development
- Sustainable materials and supply chain stewardship
- Sustainable and value-driven relationships
Value created for host communities in response to their key concerns and expectations
- 96% of total procurement spend is from in-country businesses
- US$709m of total procurement spend by our mines – 31% of total – was spent on suppliers and contractors from our host communities
- Included all business partners in our health and safety management systems
- Worked with suppliers and contractors at our Australian mines on several initiatives to address issues relating to modern slavery, diversity and inclusion, decarbonisation and sexual harassment
How we supported our communities during Covid-19
- Provided contractor employees with access to our vaccine, testing and quarantine facilities
- Imposed mandatory social distancing, sanitation and mask-wearing practices at our sites and offices
- Included business partners in our communication campaigns around our Covid-19 programmes
- Committed to paying smaller businesses within 30 days of delivery of goods and/or services in South Africa
Governments
Number of engagements in 2021: 1,065 (2020: 1,011)
Payments include
mining royalties and land-use payments, taxes, duties and levies.
US$558mpaid in taxes and royalties
US$320mpaid to the Ghana government in taxes, royalties and dividends, relating to its 10% stake in each of Damang and Tarkwa
Key concerns and expectations
- Adherence to relevant legislation
- Compliance with safety, health and environmental regulations
- Respect for human rights
- Payment of taxes and other levies
- In-country employment and procurement
- Investments in SED projects in host communities
Value created for host communities in response to their key concerns and expectations
- Sourced over 96% of procurement from companies within the countries of operation
- Over 87% of employees are nationals of the countries of operation
- Paid royalties and taxes to host governments that, if utilised appropriately, can enable them to develop critical infrastructure
- Invested in SED projects that also grow and sustain non-mining jobs
How we supported our communities during Covid-19
- Adhered to all government regulations and protocols
- Donated to government or industry response funds
- Donated medical equipment to government-run hospitals and clinics
- Engaged directly with host governments to raise awareness within host communities
- Assisted local government efforts, including vaccination campaign roll-out and communication