African Mining May 2023 | Page 19

OPERATIONS •

Indaba 2023 as being a company with foresight and initiative in the renewables space , referring to the construction of the R715-million 50MW Khanyisa solar plant at South Deep . The solar plant went operational in Q4 2022 .

“ We want to be part of the solution , and not part of the problem ,” Preece commented . Khanyisa has been successfully commissioned and is currently being optimised . The company ’ s plan at the time of writing in March , was to add another 10 % capacity to the plant in the first quarter of 2023 . A 140m-high met mast has also been installed to explore the potential of wind energy at the mine , to back up the solar at night . Preece expanded , “ The results to date have been pleasing . The wind energy we are recording is suggesting that a 3-4MW wind turbine will be a viable option for the mine . The study will take the better part of a year and the mine is already working on the Environmental Impact Assessment in terms of regulatory requirements .

Preece added , “ Another benefit to being ahead of the curve , when it comes to innovative operational solutions , lies in the attraction and retention of people and skills . People want to work in a business that can operate , despite the energy constraints , in South Africa in particular .”

Overall , electricity from renewables accounted for 14 % of the group ’ s total consumption in 2022 , with renewables providing 54 % of electricity consumed by the Agnew mine in Australia and the hydro electricity supply to the Cerro Corona mine in Peru certified 100 % renewable from hydropower .

Lessons learned , future challenges / opportunities The next ten years are expected to see production from the Gold Fields Australian region produce c . 1Moz pa ; Tarkwa in Ghana at c . 500-600koz , production growth from 2024 onwards at Salares Norte ( to 500koz ) and a continued build-up at South Deep ( to 380koz ) in South Africa – there are , however , also assets in the portfolio that are maturing , like Damang and Cerro Corona . Preece explained , “ Gold Fields has limited organic growth opportunities in our current portfolio , and as such , will need to pursue inorganic opportunities to bolster our pipeline . These options will include greenfields targets , development projects or bolt-on acquisitions of producing assets in the future .”

Having learned from the Yamana experience , instead of transformational projects , the company will look to : opportunities in regions in which it is already currently operating ; opportunities with an established ESG footprint , LOM and lower-all-in cost ( with potential exploration included ) and opportunities where the company can upgrade the quality of its portfolio over a period of time . Preece emphasised , “ We will continue to seek to upgrade the quality of our portfolio of assets focusing on profitable ounces ( high grade assets , with low costs ).”

A perfect example of this form of growth lies in the recent Gold Fields and AngloGold Ashanti proposed joint venture in Ghana between Gold Fields ’ Tarkwa and AngloGold Ashanti ’ s neighbouring Iduapriem mines ⁴ . The Tarkwa Mine is held by Gold Fields Ghana , in which Gold Fields currently owns a 90 % share and the government of Ghana ( GoG ) holds 10 %. The Iduapriem Mine is currently 100 % owned by AngloGold Ashanti . Both mines are located near the town of Tarkwa in the country ’ s Western Region .

The R715-million 50MW Khanyisa solar plant at South Deep went operational in Q4 2023 .

The parties have agreed in principle on the key terms of the proposed JV announced on 23 March 2022 . Having commenced with preliminary , high-level and constructive engagements with senior government officials in Ghana , and with continuous engagement going forward with the GoG , relevant regulators and other key stakeholders – with a view to implementing the JV as soon as practically possible – Gold Fields and AngloGold Ashanti have agreed to mutual exclusivity . It is intended that the JV will be an incorporated joint venture , constituted within Gold Fields Ghana and operated by Gold Fields . AngloGold Ashanti will contribute its 100 % interest in Iduapriem to Gold Fields Ghana in return for a shareholding in that company .

“ The proposed JV is an exciting opportunity to combine mining operations that are essentially part of the same mineral deposit and is something that Gold Fields and AngloGold Ashanti have discussed many times before over the years . The ability to optimise mining and the use of shared infrastructure across the combined operation will result in significant flexibility in mine planning , materially enhancing the economics of the mine and ensuring quality and scale of operation that will be world class . That unlocked value will underpin the proposed JV ’ s continued contribution to our host communities and Ghana for decades to come . For Gold Fields , it will also significantly enhance the overall quality of our portfolio ,” said Preece . •

References :

1 . The Yamana Transaction was terminated following a competing bid . For more information , go to https :// www . africanmining . co . za / 2022 / 11 / 15 / gold-fields-terminates-arrangement-agreementwith-yamana /

2 . Q4 December Quarterly Review Book Final – statement by Martin Preece , interim CEO .

3 . https :// www . africanmining . co . za / 2022 / 08 / 01 / women-in-mining-thenumbers-dont-add-up-and-how-we-can-change-this /

4 . See online article dated Tues 4 April for more information : https :// www . africanmining . co . za / 2023 / 04 / 04 / ghana-proposed-jv-to-createafricas-largest-gold-mine /

High-quality near-term production growth sets us apart from our global peers .

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