Overview of the South Deep Project 05 June 2013 Forward looking - - PowerPoint PPT Presentation

Overview of the South Deep Project

05 June 2013

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 occupational health risks experienced by Gold Fields’ employees. 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.

Forward looking statements

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Our Vision and Values

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Locality – Witwatersrand Gold Fields

GREYLINGSTAD

POTCHEFSTROOM

KROONSTAD VREDEFORT

WELKOM KLERKSDORP

South Deep

Central Rand Group

West Rand Group LEGEND

EVANDER

JOHANNESBURG

100KM Scale

Historic production: > 1 600 000 000 oz of gold 4.5bn tons of ore treated at an average grade of

9.0g/t

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Locality – South Deep

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GOLDFIELDS GOLD MINES SIBANYE GOLD MINES DURBAN ROODEPOORT DEEP HARMONY ANGLO GOLD ASHANTI GOLD ONE Towns Mine Boundaries Farm Boundaries Roads

REFERENCE

Blyvooruitsicht Kusasalethu Sibanye Gold Sibanye Gold Gold One

Safety

0.93 0.07 0.12 0.06 0.13 0.4 0.8 1.2 F2008 F2009 F2010 F2011 C2011 C2012 C2013

LDIFR

21.29 5.78 2.8 2.4 2.3 1.9 1.62 5 10 15 20 25 F2008 F2009 F2010 F2011 C2011 C2012 C2013

SIFR

6.66 2.11 1.1 0.84 1.09 0.98 0.94 2 4 6 8 F2008 F2009 F2010 F2011 C2011 C2012 C2013

FIFR

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• 6 054 047 FOG fatal free shifts – April 2013
• OHSAS 18001 Compliant

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IF WE CANNOT MINE SAFELY, WE WILL NOT MINE

History

• 1950: Prospecting in the area commenced
• 1961: Production at Western Areas Gold Mine (WAGM)

commenced

• 1999: Placer Dome Western Areas (PDWA) Joint Venture

(JV) formed

• 2000: Name changed to South Deep Gold Mine
• 2005: Twin Shaft Complex opened
• 2006 Gold Fields acquired Barrick’s 50% JV interest in the

PDWA JV

• 2007: Gold Fields acquired all remaining WAL shares to own

100% of South Deep Gold Mine WAL listing terminated

• 2007: Retired inherited 1,000,000 ounce hedge at

US$622/ounce at cost of US$ 300 million – savings to date US$ 1 Billion

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Overview – building a world class mine

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Transition To Build-up Underway

• Landmark Union Agreement on new Operating Model – 2 October 2012
• Full production of circa 700koz in 2016
• De-stress development increased 75% in 2012

Key Infrastructure Projects Completed : On Budget and On Time

2010 2011 2012 2013E 2014E 2015E Status

94 Level Refrigeration Plant On schedule Twin Vent Shaft Deepening Commissioned Oct 2012 Tailings Storage Facility Commissioned April 2011 Plant Expansion 330 Ktpm Commissioned Nov 2012 Backfill Infrastructure Commissioned New Mine Development On-going

Phase1 commissioned Backfill pipe extensions in the 95-1W, 95-2W and 95-3W Commission machines 3, 4 and 5 with 100 and 105 Level BACs Hoisting builds up as per mine plan

Capital Projects Progress

New Operating Model

1

Vision:

Horizon 1 Rebasing the mine Horizon 2 Setup for success Horizon 3 Deliver the ramp-up

Phase 1: CHANGE Phase 2: OPTIMISE Phase 3: IMPROVE

6 union engagement initiatives General business processes Future operating model initiatives

Business Optimisation Capital Infrastructure Maintenance Optimisation Mining Optimisation Bu Bu

2.5

ves

2.1

Operating Infrastructure Op O

2.2

Mi M

2.3

Ma M

2.4

July 2012 Jan 2013 Jan 2014 Dec 2015 Leadership Pipeline and Capacity

1A

Hearts and Minds Culture Change

1B

Partnerships for success Business Improvement Six Sigma; Lean; Theory of Constraints (TOC)

3.2

Continuous skills development

3.3 3.1

Job grading Maintenance management Flexibility in mining Fle Fl

E D

Total rewards

B C

Rebase agreements Reb Re

F

FULCO

A

PAYROLL BONUS RECRUITING AND TRAINING SHIFTS, SHAFTS, LOGISTICS ORG UNIT DESIGN MAINTENANCE MANAGEMENT MINING FLEXIBILITY CHANGE OFFICE SETUP R

1.5

B

1.4

• n e

O

1.1

P

1.3

n M ng M

1.6

n M nt M

1.7

C

1.8

S

1.2

1

Phase 1 & 2 overseen by the Change Office… …transitioning into a longer term BI FUNCTION

Multi-phased approach to support South Deep ramp-up

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New Operating Model: Implementation complete

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First month under new Phase 1 Bonus

October November December Quarter 1 2013

Training (~3 weeks) New shift arrangement implemented Prepare training materials Assigning gangs to cage schedule

Bonus implemented 21 October First NEW pay-out 15 December

Recruiting and up skilling

Detailed design work

System build (Mineware / with interim solution) Update Maxxess Procure, fit and test infrastructure

Implement 4x4 21st November

Bonus

1

Shift Arrangement Mapping of operators to gangs & shift pattern

1

Agree on training program & FM provider

3

Sign-off on bonus design 5 Finalise fleet & labour plan numbers Sign-off on the new shaft schedule

2

1 2 3 2 3 4 1 2 3

Recruit

Recruiting kick-off 08 October

1 2 5 Data input finalised and collected 5 Short-term planning by machine 1 2

Christmas Break 22nd to 2nd January

First new employees on-site

2 25th Oct 17th Nov

Lump-sum payment Payment lists

Agreement on Working Calendar

4

First month under new Phase 2 Bonus

First NEW pay-out 15 January

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• Embedding of the New

Operating Model’s key elements

• 12-hour 4x4 shift system is
• perational and embedded
• Siya Phambili bonus system is

implemented and fully functional

• Recruitment and training of the

increased labour requirements

• 251 of 267 new positions filled

in Q1, plus extra 90 for attrition

• Q2 requires additional 63

positions

New Operating Model

Key increases in resources

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Our People

• Employ approximately 3,500 people on operation –

full production will employ 5,000 people

• Diverse workforce
• Well trained and qualified personnel
• Well paid and incentivised personnel
• World class medical facilities
• Wellness programme

− “24 hours in the life of a miner”

• Unionised labour force

− 72% NUM, 15% UASA and 14% non-affiliated

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Our People

Phase 1 of the Hostel Upgrades Emoyeni

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• There are currently 159 rooms to be completed by

July 2013

• Each unit will accommodate two people, and

consists of a shower , TV room, Toilet and a shared kitchen

• One person per bedroom
• Phase 2 will start shortly after Phase 1 and will

convert another 212 rooms

• Conversion of 123 at Enduleni Residence into

family units has also been completed

Emoyeni Hostel outside view

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Accommodation Strategy

• Phasing out of the Hostel system

Shared Value (SV)

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The project will be completed in two Phases

Phase I Phase II

March – May 2013 June - July 2013

• Best practice in SV among

global mining companies

• Baseline assessment of

existing programmes at South Deep

• Identification of business and

social risks and opportunities

• Assessment of gaps and
• verlaps
• Engagement of local

managers in the SV approach Key Deliverables

• Promising SV opportunities

defined for South Deep

• Criteria for assessing SV
• pportunities
• Preliminary action plans for

establishing pilots

• High level performance targets

Shared value offers a new paradigm for how corporations engage social challenges such as poverty, health, and

• education. Shared value is about building competitive advantage by solving social problems.

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Sustainable Development

• Management of environmental aspects in

line with latest legislative requirements

• Environmental Management Systems

according to best practice international standards (ISO14001 certified)

• Water Management – Water use license
• International Cyanide Management

Institute (ICMI) compliant

Environmental Management

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Geology - Exploration

Surface

Pretoria Group

Black Reef Chuniespoort Group

Base at ± 1800mbc

VCR

Klipriviersberg Group

Base at ± 3000mbc

Upper Elsburgs

D7 D8 Orig. D1 D2 D3 D4 D5 D6

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Geology - Orebody

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Geology – Down-dip extension

Surface South Deep Phase 2 VCR Upper Elsburg Subcrop Ezulwini Cooke 3 Shaft Ezulwini # South Shaft SV1 / SV3 South Deep Current Mine Phase 1

3400 m 2400 m 1500 m 1000 m

South Shaft Cooke 3 2500 m

2439 m 2439 m 2439 m

Twins Shafts

Mining Areas

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Mineral Resources

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Managed

Tonnes (Mt) Grade (g/t) Gold (‘000 oz) Classification Dec 2012 Dec 2011 Dec 2012 Dec 2011 Dec 2012 Dec 2011 Underground Measured 57.6 51.4 7.0 7.3 12,983 12,015 Indicated 267.6 276.9 6.9 7.0 59,328 62,390 Inferred 27.5 27.5 7.4 7.4 6,569 6,569 Total Underground 352.7 355.8 7.0 7.1 78,880 80,974 Surface Indicated stockpiles 59.3 58.9 0.2 0.2 417 429 Grand Total 412.0 414.8 6.0 6.1 79,297 81,403

Mineral Reserves

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Managed Tonnes (Mt) Grade (g/t) Gold (‘000 oz)

Classification

Dec 2012 Dec 2011 Dec 2012 Dec 2011 Dec 2012 Dec 2011

CM – Proved 13.2 15.2 5.7 6.0 2,413 2,929 CM – Probable

• 6.6
• 4.2
• 885

NOW - Probable 61.7 63.5 5.9 6.1 11.609 12,539 NOW - Proved 2.4

• 6.1
• 0.475
• SOW – Probable

83.4 81.9 5.4 5.2 14,393 13,581 OM – Probable

• 0.4
• 5.0
• 72

Total 160.7 167.6 5.6 5.6 28,890 30,007 Probable – Ph2 62.7 57.4 5.1 5.2 10,221 9,577 Total 223.4 225.0 5.5 5.5 39,112 39,584

Mineral Reserve and LoM profiles

LoM mining sequence and highlights

Phase-1 SoW West (Block-B) Phase-1 NoW Current Mine

• Mining in Block-B starts in 2017

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Mineral Reserve and LoM profiles

LoM mining sequence and highlights

Phase-1 SoW West (Block-B) Phase-1 SoW East (Block-A) Phase-1 NoW Current Mine Phase-1 NoW VCR

• Final Extraction of Current Mine in 2029
• Mining in Block-A commences in 2029

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Mineral Reserve and LoM profiles

LoM mining sequence and highlights

Phase-1 SoW West (Block-B) Phase-1 SoW East (Block-A) Phase-1 NoW Current Mine Phase-1 NoW VCR

• Mining limits are reached in Block-A and B

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Mineral Reserve and LoM profiles

LoM mining sequence and highlights

Phase-1 SoW West (Block-B) Phase-1 SoW East (Block-A) Phase-1 NoW Current Mine Phase-1 NoW VCR

• Final Extraction of Phase-1 NoW in 2051
• Mining lower limits are reached in Block-A and B

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Mineral Reserve and LoM profiles

LoM mining sequence and highlights

• Once the corridors are mined to

completion in Block-B the project-link corridor and VCR pillar is extracted

• Mining between 2094 and 2108 (1,5

Moz) are excluded from the Reserves Phase-1 SoW West (Block-B) Phase-1 SoW East (Block-A) Phase-1 NoW Current Mine Phase-1 NoW VCR

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Mining Philosophy

Mining a massive orebody at depth

Destress stope MB

Front abutment stress 500 Mpa 72 500 psi stress 75 Mpa 11 000 psi De-stressed zone 30 - 40 Mpa 3000 - 4500 psi Depth 2600m below surface Depth Equivalent 1200m below surface

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Mining Philosophy

Mining a massive orebody at depth: Destress envelope

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Mining Methods: De-stress Mining

Main-access-drive

2.2m

Recently filled stoping drive

Stoping-drive

1

Stoping-drive mining

3

Stoping-drive completion

2

Advance stope-access-drive

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Mining Methods: Drift and Bench Mining

Bench access

Mining direction

Bench mining

Mining direction

Primary drift mining

1 3 2

Drift access Bench access

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Mining Methods: Longhole stoping

1 2

Longhole stope access Slot development

Slot raise

3 4 5

Slot development Stoping Stoping

Completed slot Slot access

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Mining Methods: Combined

De-stress Stope Drives Long hole stoping Drifts De-stress Stope Access Drives Drives

3D View of planned mining

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Achieving the de-stress schedule is the keystone to executing the plan

Destress performance

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Roll-out of the Crush Pillar Initiative expected to improve performance further

1000 2000 3000 4000 5000 6000

C2010 C2011 C2012 Jan 13 Feb 13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

Total Destress

Actual

Y on Y improvement of 75%

m²

Backfill placement

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m³

5000 10000 15000 20000 25000 30000 35000 40000

C2010 C2011 C2012 Jan 13 Feb 13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13

Backfill

Actual Y on Y improvement of 50%

Existing Mine Infrastructure

Station Statio

33 Lvl 48 Lvl 49 Lvl 50 Lvl 53 Lvl 56 Lvl 58 Lvl 60 Lvl 63 Lvl 65 Lvl 68 Lvl 70 Lvl 70a Lvl 71 Lvl 72 Lvl 75 Lvl 78 Lvl 80 Lvl 83 Lvl 85 Lvl 87 Lvl 90 Lvl 90 Lvl 93 Lvl 93 Lvl 94 Lvl 95 Lvl 95 Lvl 100 Lvl 100 Lvl 105 Lvl 105 Lvl 110 Lvl 110 Lvl 110a Lvl

Colour Coding: Red Up Cast. Green Down Cast Gold Rock Handling Capacity Rock Capacity 120ktpm Rock Capacity 175ktpm Rock Capacity 195ktpm 94 Level Refrigeration SV 1 50 Level Plugs Shaft damaged South Shaft SV 3 80 Level Pumps & Refrigeration Plants 83 Level Backfill Plant 95a Level Pump Station Intermediate Pump Stations Twins Ventilation Shaft Twins Main Shaft 51 Level Pump Station 84 Level Pump Station Metallurgical Plant SV 2 Deepened Section 110a Pump Challenge is the limited Storage from 95 Level to 95a Level

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CM

South Shaft creating flexibility

Tailings Storage Facility

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Backfill Infrastructure

Full Plant Tailings – Backfill plant at South Shaft

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Metallurgical Plant Expansion

Milling, Crushing & Thickening

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Permanent Rock Handling Infrastructure

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In-stope Truck Tips 95-1W 95-2W 95- 3W

The Silos are required for life of mine, where traditional ore passes would fail with short life spans between costly rehabilitation.

100L 105L 110L 110AL 5

315m 35m 40m 80m x 2 85m x 2

1 3 2

October’13

Phase -1, Silos No.3 and 5 commissioned by December 2013 Phase -1 Sink, line. Equip December‘13

Tip Box Front Completed Sinking required

Settlers

1

Phase - 2, Silos No.1, 2 and 4 commissioned by December 2014 Phase -2 Sink, line & equip Dec’14 Phase -2 Sink, line. Dec’14 Phase -1 Sink, line. Equip December’13

Sinking completed

VENTILATION #

Crusher Conveyor

3 2 5

Lining Deferred

4

South Deep Investors Visit, 5 June 2013 Page 39 WASHBAY ACCESS WAY

DUMPTRUCK BAY

ACCESS WAY RIG BAY 1 RIG BAY 2 RIG BAY 3 LHD BAY 1 LHD BAY 2 LHD BAY 3 OFFICE 1 OFFICE 3 OFFICE 2 ASSEMBLY BAY 93 RAW EAST A 93 RAW EAST B

Phase-1 Mining completion October ’12 Phase-2 Mining completion April ’13 Phase-3 Mining completion Sep ’13 Phase-3 Mining completion September’13

93 Level Central Workshop Mining Progress

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• Ventilation Shaft infrastructure hoisted the first skip on the 16th October 2012
• Temporary Ore Pass system was commissioned at the end of September 2012
• Metallurgical Plant expansion project was completed as planned in Q4 2012
• The Backfill Full Plant Tailings (FPT) project achieved targets planned in C2012

Highlights of 2012

Project status is at 45 months out of 60 months program

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Build-up Plan

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• Steady state indicators
• Average Cash Cost*

US$700/ounce

• Average NCE*

US$900/ounce * Current money terms: Exchange Rate 9.00

KM

100 000 200 000 300 000 400 000 500 000 600 000 700 000 800 000 C2013 C2014 C2015 C2016

Annual Ounces (indicative)

Circa 700 koz

Achieve full production run-rate

Visitors Induction Induction

Important Notes

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• Alcohol is not permitted on the premises
• Smoking is prohibited underground and in office buildings
• Cell phones are not allowed underground
• Illegal substances and firearms are not permitted on the property
• Adherence to all the company rules is very important

South Deep Investors Visit, 5 June 2013

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Personal Protective Equipments

• Safety Shoes or Gumboots
• Hard Hats
• Eye Protection
• Ear Protection
• Res–Q-Pac (Demonstration to be conducted)
• Cap-lamps
• Gloves

South Deep Investors Visit, 5 June 2013

Emergency Response Protocol

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• We offer Primary & Occupational Health Care on the property with a resident

Occupational Medical Practitioner.

• Should you feel sick or are injured in any way, please speak to the tour guide, who

will make the necessary arrangements.

• Barometric pressure changes experienced in the conveyance may precipitate pain
• r damage to your eardrums especially if you are suffering from an upper

respiratory tract disease.

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Heat Stress Management

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• The environment may be unfamiliar to you and lead to disorientation, so it is

important to follow all official instructions and not to become separated from the group.

• Conditions underground may be more hot and humid than you expect, and the

physical exertion required to reach some working places may be considerably more than you are accustomed to.

• It is vital to maintain an adequate fluid intake when you are underground and not

to over-exert yourself.

• If you feel unwell in any way, or if you feel excessively tired, you must immediately

notify the tour guide.

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General Safety

• Stay as close as possible to the tour guide and obey all the instructions.
• Make sure you have your goggles on before entering the cage.
• Note that machinery and rolling stock underground has a right of way.
• Only walk on the travelling way side of the haulage and If a locomotive

approaches, stand still in a safe place and wait for it to pass.

• In the roadways and ramps travel on the driver’s side of the cabin where the
• perator will be able to see you. If a machine approaches stand still, shine your

cap-lamp light at the driver, and wait for the machine to pass.

• Stay focussed and enjoy the rest of the visit.
• In a case of emergency, phone the Control Room Telephone No. ext. 1002 / 1004

South Deep Investors Visit, 5 June 2013

Thank you