d all e picture and “send to back”
Breaking the resource curse
NICK HOLLAND CEO Gold Fields
The African Mining Network– Johannesburg October 2018
Breaking the resource curse NICK HOLLAND CEO Gold Fields The - - PowerPoint PPT Presentation
d all e picture and send to back Breaking the resource curse NICK HOLLAND CEO Gold Fields The African Mining Network Johannesburg October 2018 Forward looking statement Certain statements in this document constitute forward
The African Mining Network– Johannesburg October 2018
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Certain statements in this document constitute “forward looking statements” within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. In particular, the forward looking statements in this document include among others those relating to the Damang Exploration Target Statement; the Far Southeast Exploration Target Statement; commodity prices; demand for gold and other metals and minerals; interest rate expectations; exploration and production costs; levels of expected production; Gold Fields’ growth pipeline; levels and expected benefits of current and planned capital expenditures; future reserve, resource and other mineralisation levels; and the extent of cost efficiencies and savings to be achieved. Such forward looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the company to be materially different from the future results, performance or achievements expressed or implied by such forward looking statements. Such risks, uncertainties and other important factors include among others: economic, business and political conditions in South Africa, Ghana, Australia, Peru and elsewhere; the ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, exploration and development activities; decreases in the market price of gold and/or copper; hazards associated with underground and surface gold mining; labour disruptions; availability terms and deployment of capital or credit; changes in government regulations, particularly taxation and environmental regulations; and new legislation affecting mining and mineral rights; changes in exchange rates; currency devaluations; the availability and cost of raw and finished materials; the cost of energy and water; inflation and other macro-economic factors, industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS and other
These forward looking statements speak only as of the date of this document. Gold Fields undertakes no obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events.
Mining's SLO | Nick Holland | October 2018
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Mining's SLO | Nick Holland | October 2018
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Mining's SLO | Nick Holland | October 2018
Source: Gold Fields
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Mining's SLO | Nick Holland | October 2018
10 20 30 40 50 Ghana Peru South Africa Australia
0.2 0.4 0.6 0.8 1 Ghana Peru South Africa Australia
10000 20000 30000 40000 50000 60000 Ghana Peru South Africa Australia
1 – UN Human Development Index: 1=Maximum human development; 0=No human development 2- Government Effectiveness Index: 2=Complete government effectiveness; -1=Ineffective government Source: World Bank, UNDP, Index Mundi
0.5 1 1.5 2 Ghana Peru South Africa Australia
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Mining's SLO | Nick Holland | October 2018
Source: Gold Fields
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Mining's SLO | Nick Holland | October 2018
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Source: ICMM, Gold Fields
Mining's SLO | Nick Holland | October 2018
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Mining's SLO | Nick Holland | October 2018
Source: World Gold Council (2013), numbers rounded
0.3 37 4 6 6 26 5
5 10 15 20 25 30 35 40 Community spend Employee payments In-country supplier spend Governemnt payments Total in-country spend Profits for shareholders Out-of-country spend US$bn
10
7 524 54 84 96 366 54
100 200 300 400 500 600 Community Spend Employee payments In-country supplier spend Government payments Total in-country spend Profits for shareholders Out-of-country supplier spend
Mining's SLO | Nick Holland | October 2018
Source ICMM (2016), PWC (2018) and authors’ calculations; approximate revenue flows from Top 40 global mining companies based on revenue allocation for a typical mine. numbers rounded
US$bn
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Mining's SLO | Nick Holland | October 2018
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Source: Ghana Chamber of Mines (2017), World Bank 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
GDP per capita US$/year % of GDP
Mining's SLO | Nick Holland | October 2018
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Mining's SLO | Nick Holland | October 2018
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Mining's SLO | Nick Holland | October 2018
Source: Gap Minder
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Mining's SLO | Nick Holland | October 2018
Source: ICMM (2018) Resource rents are the surplus profits generated (revenue above economic costs) through the extraction of resources.
Mining dependent countries (MDCs) (Mining rent’s contribution to GDP >10%, Or mining constitutes >20% of exports) Non-Resource dependent developing countries (Mining rent’s contribution to GDP <10%, or <20% of exports)
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Mining's SLO | Nick Holland | October 2018
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Mining's SLO | Nick Holland | October 2018
18 20 40 60 80 100 120 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mining's SLO | Nick Holland | October 2018
1 - Excludes Afghanistan, Yemen, Syria, Iraq and India (recent inclusion) Source: ICMM, ACLED (Armed Conflict and Event Location and Event Data)
5,000 10,000 15,000 20,000 25,000 30,000 35,000 Mining-related conflict incidents Total conflict incidents worldwide1
Mining conflicts Total conflicts
Political risk
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Mining's SLO | Nick Holland | October 2018
1 - Papua New Guinea 2 - Dates - period from disruption to full abandonment Source: Market Watch / Wall Street Journal, New York Times, Atlas of Mines
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Mining's SLO | Nick Holland | October 2018
Source: Gold Fields, International Red Cross
Internet availability International groups exchanging campaign information globally
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Mining's SLO | Nick Holland | October 2018
Chile Australia Peru Botswana South Africa Ghana Kazakhstan Niger Bolivia Zambia Papua New Guinea Congo Guinea Mauritania
Source: Natural Resource Governance Institute
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Mining's SLO | Nick Holland | October 2018
Source: Gold Fields’ experience, IMF analysis
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Mining's SLO | Nick Holland | October 2018
Source: Gold Fields
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Mining's SLO | Nick Holland | October 2018
Source: Blavatnik School of Government, Natural Resource Governance Institute, ICMM, Gold Fields experience
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Mining's SLO | Nick Holland | October 2018
Source: ICMM
Progressive rehabilitation
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Mining's SLO | Nick Holland | October 2018
Source: Blavatnik School of Government, Natural Resource Governance Institute, ICMM, Gold Fields experience
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Mining's SLO | Nick Holland | October 2018
Source: EITI
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Mining's SLO | Nick Holland | October 2018
Source: International Growth Centre, Blavatnik School of Government, ICMM, Gold Fields experience
Procurement Employment Social Investment
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Mining's SLO | Nick Holland | October 2018
Source: Gold Fields
31 20 2806 186 1 340 3 546 214 158 498 1578 2 338 2434 500 1000 1500 2000 2500 3000 Social Investment Workforce payments In-country supplier spend Government payments Total in-country spend Out of country supplier spend Capital providers Total value creation
Mining's SLO | Nick Holland | October 2018
Source: Gold Fields
US$m
43% 28%
The value we create in host communities is: 22% of total in- country value creation & 20% of total value creation 1) 43% of workforce excluding corporate office; 2) 88% of procurement is from in-country suppliers; 3) 28% of in-country suppliers are from host communities
112 1,018 1,138 Total: 2,268 host community jobs at our South Deep mine
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Mining's SLO | Nick Holland | October 2018