5.2.7 Shared Value
What is Shared Value?
Shared Value is created when
companies take a proactive role in
simultaneously addressing business
and social needs. Shared Value goes
beyond mitigating the potential harm
in a company’s value chain - it is
about identifying new opportunities for
economic success by incorporating
social priorities into business strategy
and working collaboratively with
multiple stakeholders to find solutions
to various socio-economic and
environmental issues. A key
component of this approach is to
ensure that the value created is
shared by the business and the
community. Strong local businesses
and skilled individuals contribute to the
overall economic upliftment and
sustainability of communities while
delivering the goods and services that
Gold Fields needs to develop and
operate its mines.
Shared Value at Gold Fields
The relatively low gold price and the
restructuring of Gold Fields’ key
operations has made maintaining
historical levels of SED spending a
challenge. Furthermore, it is not clear
whether SED spending is the most
effective way to support long-term, sustainable community development.
In this context Gold Fields introduced
Shared Value to the business in 2012.
Implementation of Shared Value also remains an imperative for Gold Fields as a key component of maintaining and strengthening our social licence to operate. The Shared Value projects we have implemented are aimed largely at addressing the priority needs of our host communities which include employment, procurement, skills and access to water.
Our Shared Value approach is based on four key pillars:
| 1. | Strategic interventions, to proactively address socio-economic challenges that can drive community tensions, non-governmental organisation activism or more restrictive regulations |
| 2. | Integration to proactively address socio-economic challenges |
| 3. | Participation in collaborative action with other stakeholders |
| 4. | Transparency regarding Gold Fields’ economic contributions to its host societies in line with World Gold Council guidelines |
Building on the Shared Value
projects that were initiated in 2014 the projects listed on the following
pages were either started in 2015 or
continued from 2014. The Damang
Quarry project, which was started
as a Shared Value project in 2014,
stalled in 2015 as a result of the
company planning to run the quarry
business encountering financial
constraints. A similar project
involving waste rock crushing and
screening was planned for Tarkwa
mine in 2015. This project has been
slow to start as a result of licencing
constraints experienced by the
independent business partner.
An additional Shared Value project is to establish a strong local supplier base among our host communities at South Deep. This is detailed on page 116.
Gold Fields’ will actively pursue the listed Shared Value projects below but we are also finding that increasingly our SED spend is channelled into projects that by their nature benefit both the community and our business. Since Shared Value is becoming more integrated and embedded there is no need to delineate new projects – rather our normal community investment spend will offer similar benefits both to communities and Gold Fields.
 |
 Skills development training at South Deep |
| Tarkwa and Damang mine (Ghana) |
Road rehabilitation | |
 |
 Gold Fields Ghana, in partnership with the government of Ghana is upgrading the 33km road between Tarkwa and Damang and paving the road surface in bitumen. The total cost of this project is estimated at US$15 million over two years, of which Gold Fields will pay an estimated 35%. Contractors who will be building the road will be asked to prioritise local employment as part of their recruitment policy. Contracts are expected to be awarded in early 2016. |
|
 During construction of the road, job opportunities will primarily go to workers from our impacted communities. The improved road infrastructure will benefit all public road users as travel times, vehicular accidents and vehicle maintenance costs will be reduced. Roadside communities will no longer experience dust emissions since the road will be surfaced. |
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 Gold Fields will save on the cost of transport as the maintenance of vehicles transporting labour, goods and materials will be reduced. Road maintenance costs will also be reduced. The improved infrastructure will also reduce employees’ travel time by 35 minutes per journey, could limit driver fatigue and will enable emergency services to operate more efficiently. |
| South Deep (South Africa) |
Education and skills development | |
 |
In 2014, Edumap College partnered with South Deep to help post-matric students who had not achieved university exemption or had not been able to qualify for entrance into tertiary institutions, to improve their grades in Mathematics and Science. They received extra tuition and life skills training, and re-wrote matric at the end of the year. The project was continued in 2015 through the South Deep Education Trust and a new intake of students was enrolled in Edumap College. Further components were added to the project in 2015 - South Deep, in partnership with Sci-Bono, provided extra lessons in Mathematics, Science and Accountancy for selected matric students from all schools in the local community. The mine also partnered with the Provincial Department of Education in preparing Grade 12 students for their final examinations via a residential camp providing motivational talks and career guidance. South Deep is currently looking at expanding this Shared Valve project to include the mine’s sponsorship of the Wits University Mining Engineering School as well as working more closely with the South Deep Education and Community Trusts, which are independently supporting a range of early childhood development, secondary and tertiary education projects. |
|
During construction of the road, job opportunities will primarily go to workers from our impacted communities. The improved road infrastructure will benefit all public road users as travel times, vehicular accidents and vehicle maintenance costs will be reduced. Roadside communities will no longer experience dust emissions since the road will be surfaced. |
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Gold Fields will save on the cost of transport as the maintenance of vehicles transporting labour, goods and materials will be reduced. Road maintenance costs will also be reduced. The improved infrastructure will also reduce employees’ travel time by 35 minutes per journey, could limit driver fatigue and will enable emergency services to operate more efficiently. |
| Cerro Corona mine (Peru) |
Water and the environment | |
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Close to 90% of households in Hualgayoc now have access to sufficient clean running water. Those families whose homes are situated at an altitude too high to be connected to the water pipeline previously received water tanks from Gold Fields, and will now receive water supply from a well located at Cerro Corona. Apart from strengthening relationships between Gold Fields, the regulator and our host communities, the remediation of legacy mining sites near Cerro Corona will significantly improve the quality of the water in the El Tingo river, on which communities depend for various uses. |
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Strengthens our social licence to operate in a region in which other mining companies have experienced water-related conflict with local communities. It also reduces the cost of trucking our water to the community. |
| Cerro Corona mine (Peru) |
Local suppliers | |
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Individual local suppliers will derive long-term benefit from targeted plans to help them improve their competitiveness and diversity their customers while the broader community will experience economic upliftment and employment opportunities from having stronger, sustainable local businesses. |
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Gold Fields will be able to obtain a better service at more competitive prices from local suppliers. |