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  Physical risk management

Physical risk management

Over the past three years Gold Fields has been consistently rated in the top quartile of global companies participating in insurability ratings conducted on behalf of the global insurance industry. Our objectives under the overall balanced scorecard for the group is to achieve a “good or low-risk” status for all our operations during the annual physical risk management surveys conducted by the IMIU – International Mining Industry Underwriters – and Zurich Risk Engineering, another underwriting firm. This contributes to the favourable insurance premiums enjoyed by Gold Fields over the last few years. The findings of the surveys are depicted in diagrams 4 and 5 below.

IMIU and Zurich are used on a rotational basis by Gold Fields to benchmark our performance and to add an external monitoring element to the internal assurance process outlined earlier. These surveys are respected by the market. The IMIU survey is conducted at 300 mines worldwide. Their recommendations for improvement are followed up by Gold Fields by allocating capital for their implementation. Our engineers draw up project plans to ensure the implementation of these recommendations and monitor them on a regular basis.

Diagram 4 The average IMIU insurability ratings achieved by our operations over the last three years

Diagram 5 Insurance ratings achieved during the survey conducted by Zurich Risk Engineering. Beatrix, Driefontein and Kloof are “excellent” insurance risks in terms of the Zurich criteria.

 
Zurich criteria
 
Beatrix
 
Drie-
 
Kloof
 
South
 
Tarkwa
 
Damang
 
Agnew
 
St Ives
 
Gold Fields
         
fontein
 
 
Deep
 
 
 
 
 
average
  Property   79   71   74   30   102   110   71   60   74
  (Fire protection standards)                
  Business interruption   35   32   32   58   95   98   100   100   69
  (Flexibility/ability to recover)                
  Property   46   46   46   70   96   96   53   53   62
  (Critical spares)                
  Business interruption   35   15   21   96   91   91   94   69   63
  (Spares capacity)                
 
Overall mine rating
 
49
 
41
 
43
 
64
 
96
 
99
 
73
 
71
 
67

Note – The Cerro Corona survey will only be conducted in November 2010.