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

7.2.2 Shared value: Government

Our second most important economic contribution to our host countries is through our payment of taxes, royalties and dividends to governments. 1 In 2012, this amounted to US$626 million.

Our contribution in this respect is an important factor in the conversion of each country’s gold resources into broad-based development – including through the provision of public services, infrastructure development and other forms of government expenditure. This is particularly the case given that those governments hosting our operations are generally perceived to have relatively low levels of public corruption, moderate to strong public governance frameworks, high levels of democratic accountability and moderate to strong rule of law.

Of our host countries, three of them experienced growth of more than 3% in 2011 (latest figures) – suggesting sound government economic policies.

Likewise, both Ghana and Peru are compliant with the Extractive Industries Transparency Initiative (EITI), ensuring full transparency around natural resource revenues received by host governments – and allowing strong public scrutiny of revenue management and distribution.2 Gold Fields supports the principles and processes of the EITI through its membership of the International Council on Mining and Metals (ICMM) – and fully participates in the EITI process in Ghana and Peru.

As a result, the impacts of our economic contributions to our host governments are likely to outlive our operations in terms of public education, health, infrastructure and other development enablers – often amongst communities that are in acute need of such support.

Case study: Gold Fields
recognised for its contribution to the Ghanaian economy

Online www.cpi.transparency.org/cpi2012/
results

Onlinewww.maplecroft.com/portfolio/ mapping/maplecroft/landing

Online www.data.worldbank.org/indicator/
NY.GDP.MKTP.KD.ZG

Online www.eiti.org
 
Figure 7.11: Contributions to government
by region (US$m – pre-unbundling)

Figure 7.12: Host country governance and growth indicators

    Transparency
International
Corruption
Perceptions
Index 2012
Maplecroft
Governance
Framework Risk
Index 2012
Maplecroft
Democratic
Governance
Index 2012
Maplecroft
Rule of Law
Index 2012
World Bank
GDP Growth
data 2011
Extractive
Industries
Transparency
Initiative status
 
Australia   7th out of
176 countries
8.87
(Low risk)
10.00
(Low risk)
9.34
(Low risk)
1.8% Not a signatory  
Ghana   64th out of
176 countries
5.22
(Medium risk)
8.00
(Low risk)
6.24
(Medium risk)
14.4% Compliant
country
 
Peru   83rd out of
176 countries
5.43
(Medium risk)
10.00
(Low risk)
5.52
(Medium risk)
6.9% Compliant
country
 
South Africa   69th out of
176 countries
7.22
(Medium risk)
9.00
(Low risk)
7.56
(Low risk)
3.1% Not a signatory  

1 In addition, the government of Ghana has a 10% shareholding in both our Tarkwa and Damang mines – receiving dividend payments of US$8 million in 2012
2 Australia and South Africa are not participants in the EITI