Results for the Group

Safety

It is with deep sadness that we have to report that Maria Ramela, an employee at South Deep, lost her life in a mining incident on 2 June 2019. The 38-year old trackless crew leader was fatally injured after being struck by a rock ejected from the rockface following a series of four seismic events in quick succession.

As a result the Group's fatal injury frequency rate regressed from 0.00 for the six months ended 30 June 2018 to 0.04 for the six months ended 30 June 2019. The total recordable injury frequency rate (TRIFR) for the Group regressed by 3 per cent from 2.10 for the six months ended 30 June 2018 to 2.17 for the six months ended 30 June 2019. Three serious injuries were reported for the six months ended 30 June 2019, compared with two serious injuries for the six months ended 30 June 2018.

These incidents serve as a stark reminder that our focus on safety has to be relentless. In this regard, in 2017 a Safety Leadership Group was initiated by our Executive Committee, now chaired by Stuart Mathews, Executive Vice President Australia. This group has developed the following strategic objectives:

•	Develop a culture of safety leadership within the organisation and firmly embed safety management as a line management responsibility;
•	Provide appropriate mechanisms to engage employees on safety and equip them with the necessary skills to achieve safe outcomes consistently; and
•	Ensure the deployment of fit for purpose management systems that are aligned to a Critical Control Management approach and are certified to the ISO 45001 standard.

A follow-up workshop was held during the second half of 2019 where a dedicated safety leadership training package in support of these objectives will be launched. The training will be rolled out across the organisation from the Board of Directors to operational staff and will be standard for all new employees. We will also be extending our Australian behaviour-based programme, Vital Behaviours, to entrench safe behaviours and choices within every activity across the entire business.

	Six months			Year
Safety	H1 2019	H2 2018	H1 2018	2018	2017

Fatalities	1	1	0	1	3
Serious Injuries	3	15	2	17	26
TRIFR¹	2.17	1.52	2.10	1.83	2.42

¹	Total Recordable Injury Frequency rate (TRIFR). (TRIFR) = (Fatalities + Lost Time Injuries² + Restricted Work Injuries³ + Medically Treated Injuries⁴) x 1,000,000/ number of hours worked.
²	A Lost Time Injury (LTI) is a work-related injury resulting in the employee or contractor being unable to attend work for a period of one or more days after the day of the injury. The employee or contractor is unable to perform any functions.
³	A Restricted Work Injury (RWI) is a work-related injury sustained by an employee or contractor which results in the employee or contractor being unable to perform one or more of their routine functions for a full working day, from the day after the injury occurred. The employee or contractor can still perform some of his duties.
⁴	A Medically Treated Injury (MTI) is a work-related injury sustained by an employee or contractor which does not incapacitate that employee and who, after having received medical treatment, is deemed fit to immediately resume his/her normal duties on the next calendar day, immediately following the treatment/re-treatment.

Environmental

No Level 3 – 5 environmental incidents were reported for the six months ended 30 June 2019 compared with two for the six months ended 30 June 2018.

On 7 June 2019, Gold Fields responded to a request from the Church of England Pensions Board and the Swedish Council on Ethics for information on mining companies' tailings storage facilities (TSFs). A report on Gold Fields' 34 tailings facilities (of which two are managed by joint ventures) was submitted to the institutions and published on our website. Gold Fields manages the safety of its TSFs through, amongst others, compliance with the International Council on Mining and Metals' (ICMM) Tailings Governance Position Statement.

Fresh water withdrawal was 7.67 gigalitres for the six months ended 30 June 2019 compared with 8.12 gigalitres for the six months ended 30 June 2018 mainly due to a decrease in water withdrawal at Damang and Tarkwa as a result of increased recycling/reuse at both operations. Water recycled/reused was 68 per cent of total water usage for the six months ended 30 June 2019, above the annual ICMM-recommended target of 60 per cent, compared with 61 per cent for the six months ended 30 June 2018.

Group energy spend was US$145 million (21 per cent of operating costs) for the six months ended 30 June 2019 compared with US$131 million (19 per cent of operating costs) for the six months ended 30 June 2018, driven by higher global oil prices and rising electricity tariffs – notably by 13 per cent for South Deep. Net realised gains from the oil price hedges totalled US$4.3 million for the six months ended 30 June 2019. For the six months ended 30 June 2019 energy savings of 223 terajoules were achieved (43 per cent of the 2019 target of 523 terajoules).

CO₂ scope 1 and 2 emissions were 0.68 million tonnes for the six months ended 30 June 2019 compared with 0.70 million tonnes for the six months ended 30 June 2018, with CO₂ intensity commensurately lower at 0.64 tonnes per ounce produced compared with 0.68 tonnes per ounce for the six months ended 30 June 2018.

Installation of the underground pipelines to transport natural gas to Damang and Tarkwa was completed during the quarter and first gas was received by the mines' power plants in June 2019. Piped gas is inherently safer than road transportation of gas.

At the Granny Smith and Agnew mines in Australia, construction has begun on microgrid power systems, which include a combination of gas, solar renewable energy and battery storage. Commissioning is expected in the September quarter 2019 for Agnew and in the December quarter 2019 for Granny Smith (solar). Agnew's microgrid will be strengthened with the addition of five wind turbines to be commissioned in 2020, funded by the Australian government.

Gold Fields is the first JSE-listed mining company to support the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), and plans to submit its first TCFD baseline in the September quarter 2019. The TCFD was established by the Financial Stability Board at the request of the G20 Group of Nations. The TCFD report will replace the annual submission on climate change under the Carbon Disclosure Project (CDP).

	Six months			Year
Environmental	H1 2019	H2 2018	H1 2018	2018	2017

Environmental Incidents − Level 3	–	1	1	2	2
Water Recycled/Reused (% of total)	68	69	63	66	57
Fresh Water Withdrawal (GL)¹	7.67	6.35	8.12	14.47	14.83
Energy consumption (TJ)	5,845	5,761	5,867	11,628	12,178
Energy Intensity (GJ/tonne)	5.48	5.58	5.70	5.64	5.46
CO₂ Emissions (million/tonnes)²	0.68	0.67	0.70	1.37	1.47
CO₂ Emissions (tonnes/ounces)	0.64	0.65	0.68	0.66	0.66

¹	Relates to operations only.
²	CO₂ emissions comprise Scope 1 and 2 emissions.
³	Scope 1 emissions arise directly from sources managed by the Company. Scope 2 are indirect emissions generated in the production of electricity used by the company.

Social

Gold Fields continues to focus on maximising in-country and host community economic impact. The Group's value distribution to national economies was US$1.26 billion for the six months ended 30 June 2019 compared with US$1.40 billion for the six months ended 30 June 2018. Gold Fields procurement from in-country suppliers, excluding corporate procurement spend, was US$866 million for the six months ended 30 June 2019 (96 per cent of total procurement).

Gold Fields aims to sustain the value delivered to host communities through employment, procurement and social investments. Group host community employment was 9,563 employees –57 per cent of the workforce for the six months ended 30 June 2019 (Year end 2018: 9,188 host community employees, or 56 per cent of workforce). Group host community procurement spend for the six months ended 30 June 2019 was US$311 million – 35 per cent of total spend compared with 22 per cent spend for the six months ended 30 June 2018. The increase was mainly due to a widening of the host community definition at South Deep.

Gold Fields invested US$13.1 million in socio-economic development (SED) projects in our host communities for the six months ended 30 June 2019, compared with US$10.1 million for the six months ended 30 June 2018. The investments are funded through Gold Fields' foundations, trusts and operations. In July, after three years of construction, the 33 kilometre tarred Tarkwa- Damang road was opened. At US$27 million this is Gold Fields' largest-ever SED project.

The Board approved a Sexual Harassment Policy and a Group Diversity and Inclusion strategy in 2019. The percentage of women in Gold Fields' workforce was 20 per cent at the end of H1 2019, compared with 19 per cent at end-2018. Of the 20 per cent, just over half work in core mining activities. Training spend for the six months ended 30 June 2019 was US$7.8 million compared with US$14 million for FY 2018.

	Six months			Year
Social	H1 2019	H2 2018	H1 2018	2018	2017

Host Community procurement (% of total)	35¹	27	22	27²	45
Host Community workforce (% of total)	35¹	56	43	56	40
Socio-Economic Development Spending ($m)	13.1	15.6	10.1	25.7	17.4
Women in Workforce (%)	20	19	19	19	16

¹	Includes Gruyere.
²	2018 performance is aligned with the Group's host community definition where communities are those living within an operation's direct area of influence. 2017 number has not been restated. For the six months