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

3.1.1 Introduction

Role within Group

Our South America Region has both an operating mine (Cerro Corona) and a major growth project (Chucapaca). Cerro Corona, which is the newest of our mines, remains the most profitable operation in our Group.

Figure 3.1: Contribution to Group – South America Region (including Sibanye Gold)

% of Group total  
Optimising our operations    
Attributable gold production 10  
Growing Gold Fields    
Attributable Mineral Resources 2  
Attributable Mineral Reserves 4  
Securing our future    
Total economic contribution 7  
Employees 1  

Figure 3.2: South America Region map

Figure 3.2: South America Region map

Operations

The region is home to the Cerro Corona mine – in which we hold a 98.5% interest through our subsidiary Gold Fields La Cima. Cerro Corona produces both copper and gold.

Growth projects

The region is also home to our high-altitude Chucapaca growth project. This is managed by our subsidiary company Canteras del Hallazgo – in which we hold a 51% interest – and Peruvian mining group Compañia de Minas Buenaventura, which holds the remaining 49% interest.

In the fourth quarter of 2012, we completed our final feasibility reviews of the project, which indicated inadequate project returns, relating to the high capital over the life of mine associated with the development plan. As a result, we have suspended development activity and downgraded Chucapaca to an exploration/scoping stage.

Despite this, we remain committed to developing Chucapaca and are instead carrying out a value re-engineering exercise (including a focus on scale, mining method and additional exploration) to identify models that will facilitate the unlocking of its substantial potential whilst offering adequate returns.

Optimising our operations

 
Figure 3.3: Attributable gold equivalent production Figure 3.4: NCE margin
Figure 3.3: Attributable gold equivalent production Figure 3.4: NCE margin

Growing Gold Fields

Securing our future

Figure 3.5: Attributable Gold Mineral Reserves and Resources Figure 3.6: Local Economic Contributions (US$m)
Figure 3.5: Attributable Gold Mineral Reserves and Resources Figure 3.6: Local Economic Contributions (US$m)