OPERATIONS South Africa Region

South Africa region

A material restructuring at South Deep was announced in August 2018, aimed at reducing the workforce and mobile equipment levels in alignment with consolidating mining activity to increase focus and to recalibrate the cost base with anticipated levels of production.

OPERATIONAL PROFILE
      SOUTH DEEP  
  Mining method   South Deep is an underground mechanised mine, using an owner mining workforce. Reserves are accessed through de-stress and shadow development cuts to manage rock stress and seismic activity. A number of selective mining methods, including drifts and benches, are employed but long-hole stoping with paste fill is the primary bulk mining method. Significant focus is on frontline coaching to improve compliance to plan and productivity. Mining method and extraction sequence optimisation is ongoing.  
  Infrastructure  

The workings are accessed from the surface through two shaft systems, the Twin Shaft complex (main and ventilation shafts), of which the main shaft comprises a single-drop to 110A level, a depth of 2,998m, the vent shaft to 110 level at a depth of 2,947m and the South Shaft complex, which is a subvertical system (three operating shafts) to 95 level at a depth of 2,786m. The mine is divided into three main areas:

  1. Current Mine (CM), characterised by selective mining methods scattered over a large area originally exploited by means of conventional tabular mining. CM is accessed from four active levels (90, 93 and 95) from both the South Shaft and Twin Shaft complexes
  2. The North of Wrench (NoW), directly south and down dip of CM, comprises six mining corridors separated by regional pillars that extend southwards to the Wrench fault. A bulk non-selective mining method is applied, resulting in a higher Resources to Reserves conversion ratio
  3. The South of Wrench (SoW) east and west areas, situated south and down dip of NoW, will be mined in the same manner as NoW
 
  Mineralisation characteristics  
  1. Mineralisation hosted by conglomerates (reefs)
  2. Laterally continuous with long-range predictability
  3. Clear patterns of predictable mineralisation governed by sedimentary characteristics
  4. Ore body definition and resource modelling programmes are ongoing for the current mining areas (CM and NoW) as well as for SoW
 
Regional information

South Deep demonstrated tangible progress and a strong financial and operational recovery to the Covid-19-related restrictions experienced in 2020.

South Deep improved in most key measures during 2020, attributed to productivity improvement programmes introduced in 2019 starting to bear fruit and the effective protocols implemented to manage and mitigate the impacts of Covid-19. Ore mined increased by 7% to 1,136kt in 2020 from 1,060kt in 2019. Gold production increased by 2% to 7,056kg (226.9koz) in 2020 from 6,907kg (222.1koz) in 2019. The increased gold production was due to improved volume and grade mined.

The restructuring further embedded in 2020 incorporated a reduced workforce and mobile equipment levels aligned to overall mining activity that increased focus on the core productivity process and supported a recalibration of the cost base. Going forward, emphasis is on South Deep continuing to show substantive progress on the mine’s core strategic project themes, key performance indicators and enablers in the short to medium term. Sustaining traction in these areas remains integral to facilitating delivery on the production ramp-up and is pivotal to maintaining the mine’s trajectory to deliver LoM steady state volumes and projected financial metrics. 2021 represents a major challenge and milestone for executing the restructure plan, continuing the LoM ramp-up and establishing sustainable business improvement.


Salient features

Mineral Resources   Mineral Reserves
62.7Moz*   34.8Moz*
(+4% NET OF DEPLETION)   (+6% NET OF DEPLETION)

* 90.538% attributable to Gold Fields (life-ofmine (LoM) 2020)

SOUTH AFRICA REGION MINERAL RESOURCES AND
RESERVES 2020 – PDF 45MB
REGIONAL LEADERSHIP

Martin Preece

Executive Vice President:
South Africa

Martin joined Gold Fields as Executive Vice President: South Africa in May 2017. He previously held the position of Chief Operating Officer at De Beers South Africa after being the Group’s Technical Advisor leading its Venetia mine optimisation study. Martin has 30 years of mining experience, starting his career as a learner miner and gradually building up his experience before taking up mine manager positions at various operations. After moving to Group level at De Beers he held positions as mine strategist and business development manager before becoming chief operating officer.

OUR CONTRIBUTIONS TO HOST COMMUNITIES AND GOVERNMENT IN 2019
Employment

2,943

Procurement

US$38m

SED investments

US$2m

Tax and royalties

US$4m

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