Integrated Annual Review 2012 Annual Financial Report 2012 Mineral Resources and Mineral Reserves Regional overview  
 

8.3 Third party assurance

Report on selected sustainability information

We have undertaken an assurance engagement on selected sustainability information, as identified below and presented in the Integrated Annual Review of Gold Fields Limited (‘Gold Fields’) for the year ended 31 December 2012 (‘the Report’).

Subject matter and related assura

The subject matter of our engagement and related assurance is set out in the tables below.

1) Subject matter a to c:

In compliance with the International Council of Mining and Metals’ (‘ICMM’) Sustainable Development Framework: Assurance Procedure (ICMM Assurance Procedure), Subject Matters 4 (selected performance data) and 5 (self-declared application level) in accordance with the GRI G3.1 Guidelines:
  Subject matter 4 (Figure 8.1 on p164 of the Report)  
  a) Reasonable Assurance (RA) Unit
  Environment  
  Total CO2 equivalent emissions, Scope 1– 3 Tonnes
  Electricity MWh
  Number of environmental incidents – Level 3 and above Number
  Total water withdrawal ML
  Diesel TJ
  Number of sites with cyanide code certification Number of sites
  Health  
  Number of cases of silicosis reported Number of cases
  Number of cases of noise induced hearing loss reported Number of cases
  Cardio respiratory tuberculosis (number of new cases reported) Number of new cases
  Number of employees inHighly Active Anti-Retroviral Therapy (‘HAART’) programme Cumulative
  Percentage of workforce on the Voluntary Counselling and Testing (‘VCT’) programme Percentage
  Safety  
  Lost Time Injury Frequency Rate (‘LTIFR’) including the Australian restricted work day cases Rate
  Medically Treated Injury Frequency Rate (‘MTIFR’) Rate
  Number of fatalities Number
  Social  
  Total socio-economic development (‘SED’) spend in rand/US dollar per region Rand/US dollar
  b) Limited Assurance (LA) Unit
  Environment  
  Total water recycled/reused per annu ML
  Water intensity KL withdrawn per US$ of
revenue
  Water intensity KL withdrawn per ounce of gold produced
  Health  
  Number of cases of chronic obstructive airways diseases (‘COAD’) reported Number of cases
  Number of cases of Malaria tested positive per annum Number of positive cases
  Subject matter 5 (p3 of the report)  
 
c) We are also required to report, based on our work performed on the Key Performance Indicators, whether we concur with the self-declaration made by Gold Fields that the Report is consistent with the GRI G3.1 A+ application level.
 
  2) Subject matter d to f:

In compliance with the Broad-Based Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry (BBSEEC) and related Scorecard:

 
  BBSEEC (2002) and related Scorecard (2004)  
  d) Reasonable Assurance (RA) Unit
  Rand value spend on approved Social Labour Plan (SLP) projects Rand value
  Amendment to BBSEEC (2010) and related Scorecard (2010)  
  e) Reasonable Assurance (RA) Unit
  Percentage Historically Disadvantaged South Africans (HDSAs) in Management (DL – FL) who are classified as designated groups and who are employed at management levels (top management (board), senior, middle, junior, core skills and total)
Top management %
Senior %
Middle %
Junior %
Core %
Total %
  Conversion or upgrading of hostels to attain an occupancy rate of one person per room by 2014 Occupancy rate
  Number of houses built as part of the housing and hostel upgrade programme Number of houses built
  Total procurement spend from BEE entities (BBSEEC, (2010)) Rand value
  f) Limited Assurance (LA) Unit
  Procurement spend from BEE entities (in line with the mining charter categories of capital goods, services and consumable goods)
Capital %
Services %
Consumables %

Directors’ responsibilities

The directors are responsible for the preparation and presentation of the Report as well as the information and assessments contained within it, and for determining Gold Fields’ objectives in respect of sustainable development performance, including the identification of stakeholders and stakeholder reporting requirements, the identification of material issues, for commitments with respect to sustainability performance, for establishing and maintaining appropriate performance management and internal control systems from which the reported information has been derived, the selection of the sustainability performance indicators which form the subject matter of our assurance engagement, and for such internal control as the directors determine is necessary to enable the preparation of the Report that is free from material misstatement, whether due to fraud or error.

The directors are also responsible for the selection and application of the following reporting criteria used in the evaluation of the respective subject matter:

  • (a) and (b), Gold Fields reported performance during the given reporting period for the identified material Sustainable Development risks and opportunities (ICMM Subject Matter 4): the GRI G3.1 Guidelines.
  • (c), Gold Fields’ self-declared A+ application level of the GRI G3.1 Guidelines in relation to Subject Matter 5 of the ICMM Assurance Procedure: the GRI G3.1 Guidelines for the A+ application level.
  • (d), selected mining charter elements: the BBSEEC (2002) and related Scorecard (2004).
  • (e) and (f), selected mining charter elements: the Amendment to the BBSEEC (2010) and related Scorecard (2010).

Our responsibility

Our responsibility is to express assurance conclusions on the subject matter in (a), (b), (d), (e), and (f) and to report whether we concur with Gold Fields self-declared application level in accordance with the GRI G3.1 Guidelines, based on our work performed. We conducted our assurance engagement in accordance with the International Standard on Assurance Engagements (‘ISAE’) 3000, Assurance Engagements other than the Audits or Reviews of Historical Financial Information, issued by the International Auditing and Assurance Standards Board. That Standard requires that we plan and perform our engagement to obtain assurance about whether the selected information is free from material misstatement.

Our procedures selected depend on our judgement including the risks of material misstatement of the selected sustainability information in the Report, whether due to fraud or error. In making our risk assessments, we considered internal controls relevant to Gold Fields’ preparation of the Report. In a limited assurance engagement, the evidence gathering procedures are less than where reasonable assurance is expressed. We believe the evidence we have obtained is sufficient and appropriate to provide a basis for our assurance conclusions.

Summary of work performed

Our work included the following evidence gathering procedures:

  • Interviewing management and senior executives at Group level to evaluate the application of the GRI G3.1 Guidelines and to obtain an understanding of the internal control environment relative to the reported sustainability information.
  • Inspecting documentation at corporate level to corroborate the statements of management and senior executives in our interviews.
  • Understanding the risk assessment process and the information systems which inform the related sustainability reporting processes.
  • Testing the processes and systems at Group level and site level which generate, collate, aggregate, monitor and report the selected sustainability information.
  • Performing site work at Gold Fields KDC, Beatrix, South Deep, Tarkwa, St Ives and Cerro Corona operations (which represents the most material contribution to the selected sustainability performance information for ICMM Subject Matter 4 and for selected elements from the Broad Based Socio-Economic Empowerment Charters [2002 and 2010] and related Scorecards).
  • Conducting an application level check on the Report to evaluate whether all disclosure requirements of the GRI A+ application level have been adhered to.

Conclusions

In relation to the Report for the year ended 31 December 2012, we report

(a) On the selected performance data on which we are required to express reasonable assurance

In our opinion, the selected performance data identified in (a) above is fairly stated, in all material respects, in accordance with the GRI G3.1 Guidelines.

(b) On the selected performance data on which we are required to express limited assurance

Based on our work performed, nothing has come to our attention that causes us to believe that the selected performance data identified in (b) above is not fairly stated, in all material respects, in accordance with the GRI G3.1 Guidelines.

(c) On Gold Fields’ self-declaration on the GRI A+ application level

Based on the procedures performed, we concur with the self-declaration made by Gold Fields in the Integrated Annual Review for the year ended 31 December 2012 regarding the GRI G3.1 A+ application level.

(d) On the selected mining charter elements in compliance with the BBSEEC (2002) and related Scorecard (2004) on which we are required to express reasonable assurance

In our opinion, the selected mining charter elements identified in (d) above have been prepared, in all material respects, in compliance with the BBSEEC (2002) and related Scorecard (2004).

(e) On the selected mining charter elements in compliance with the Amendment to the BBSEEC (2010) and related Scorecard (2010) on which we are required to express reasonable assurance

In our opinion, the selected mining charter elements identified in (e) above have been prepared, in all material respects, in compliance with the Amendment to the BBSEEC (2010) and related Scorecard (2010).

(f) On the selected mining charter elements in compliance with the Amendment to the BBSEEC (2010) and related Scorecard (2010) on which we are required to express limited assurance

Based on our work performed, nothing has come to our attention that causes us to believe that the selected mining charter elements identified in (f) above have not been prepared, in all material respects, in compliance with the Amendment to the BBSEEC (2010) and related Scorecard (2010).

Comparability

In the prior year, we provided limited assurance on all performance data selected for assurance. This is the first year that we have been engaged to provide reasonable assurance on certain parameters identified above.

In addition, our report includes the provision of assurance on water recycled/reused and water intensity. We were previously not required to provide assurance on this selected performance data.

Report on the ICMM Assurance procedure

We are required to report our findings on the International Council of Mining and Metals’ (‘ICMM’) Sustainable Development Framework: Assurance Procedure (ICMM Assurance Procedure) in respect of:

1. The alignment of Gold Fields sustainability policies to the ICMM 10 SD Principles and any mandatory requirements set out in ICMM Position Statements (ICMM Subject Matter 1).
2. The reporting of Gold Fields material sustainable development risks and opportunities based on a review of its business and the views and expectations of its stakeholders (ICMM Subject Matter 2).
3. The implementation of systems and approaches that Gold Fields is using to manage its material safety risks and opportunities (ICMM Subject Matter 3).

Directors’ responsibilities

The Directors are responsible for:

  • The alignment of Gold Fields’ sustainability policies to the ICMM 10 SD Principles and any mandatory requirements set out in ICMM Position Statements.
  • The reporting of Gold Fields’ material sustainable development risks and opportunities based on a review of its business and the views and expectations of its stakeholders.
  • The implementation of systems and approaches that Gold Fields is using to manage its material safety risks and opportunities.

Our responsibility

Our engagement included reporting on the ICMM Assurance Procedure in respect of 1, 2 and 3 above based on the knowledge obtained in our evidence gathering procedures in our assurance engagement on the subject matters in (a), (b) and (c) set out in our ‘Report on Selected Sustainability Information’ above.

Findings

Our engagement included reporting on the ICMM Assurance Procedure in respect of 1, 2 and 3 above based on the knowledge obtained in our evidence gathering procedures in our assurance engagement on the subject matters in (a), (b) and (c) set out in our ‘Report on Selected Sustainability Information’ above.

1. Gold Fields sustainability policies are not aligned with the ICMM 10 SD Principles and any mandatory requirements set out in ICMM Position Statements.
2. Gold Fields has not reported material sustainable development risks and opportunities based on a review of its business and the views and expectations of its stakeholders.
3. Gold Fields has not implemented systems and approaches to manage its material safety risks and opportunities.

Independence, expertise and limitation of liability

We have complied with the International Federation of Accountants’ Code of Ethics for Professional Accountants, which includes comprehensive independence and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour.

Our engagement was conducted by a multidisciplinary team of health, safety, social, environmental and assurance specialists with extensive experience in sustainability reporting.

Our work has been undertaken to enable us to express the conclusions on the subject matters in (a), (b), (c), (d), (e) and (f) in our ‘Report on Selected Sustainability Information’ together with findings on 1, 2 and 3 in our ‘Report on the ICMM Assurance Procedure’ to the directors of Gold Fields in accordance with the terms of our engagement, and for no other purpose. We do not accept or assume liability to any party other than Gold Fields, for our work, for this report, or for the conclusions we have reached.

8.3.1 Other matter

The maintenance and integrity of the Gold Fields website is the responsibility of Gold Fields management.

Our procedures did not involve consideration of these matters and, accordingly we accept no responsibility for any changes to either the information in the Report or our independent assurance report that may have occurred since the initial date of presentation on the Gold Fields website.

KPMG Services (Proprietary) Limited

Per PD Naidoo
Director

Johannesburg

26 March 2013

KPMG Crescent
85 Empire Road
Parktown
Johannesburg
2193

Per C Basson
Director

Johannesburg

26 March 2013

KPMG Crescent
85 Empire Road
Parktown
Johannesburg
2193