To view the PDF file, sign up for a MySharenet subscription.

GOLD FIELDS LIMITED - SENS ANNOUNCEMENT - SOUTH DEEP MINE

Release Date: 02/08/2012 07:40
Code(s): GFI     PDF:  
Wrap Text
SENS ANNOUNCEMENT - SOUTH DEEP MINE

Gold Fields Limited
(Reg. No. 1968/004880/06)
(Incorporated in the Republic of South Africa)
Share Code: GFI
ISIN Code: ZAE000018123


SENS ANNOUNCEMENT - SOUTH DEEP MINE


Johannesburg, 2 August 2012: Gold Fields Limited (Gold Fields) (JSE, NYSE, NASDAQ Dubai: GFI) has
announced that its South Deep Joint Venture (“South Deep”) has issued a section 189 (3) notice (“the
notice”) in terms of the Labour Relations Act to the National Union of Mineworkers (“NUM”) and other
affected employees who are not members of a recognised trade union (“affected unaffiliated
employees”).

South Deep management has been engaged in negotiations with trade unions for several months in an
attempt to reach agreement on a proposed new operating model. If implemented, the model would
have the effect of improving productivity and performance at South Deep in line with international best
practice to the benefit of all stakeholders.

During these negotiations South Deep made several offers to the trade unions which included attractive
remuneration and benefit packages linked to the adoption of the new operating model. The productivity
measures that South Deep is striving for will create the opportunity for the mine to not only secure
existing jobs but also to create an additional 400 full-time positions in the immediate short term. The
number of new jobs is expected to rise from its current level of approximately 3,500 to about 5,000
once South Deep is in full production.

This proposed new operating model defines strategic choices on labour productivity, equipment and
maintenance, mine design and infrastructure. To implement this model, there are six changes which
benefit employees:
    - Changing the shift arrangements to allow for 3.5 hours more face time a day to achieve
      improved production results and provide employees with 43 more days off per year
    - Introducing a new Total Rewards System which appropriately incentivises employees who meet
      and exceed their targets safely
    - Adjusting the grading system to bring it into line with the rest of the mining industry
    - Achieving greater mining flexibility through selective outsourcing arrangements
    - Providing for improved maintenance through working arrangements with Original Equipment
      Manufacturers (OEMs)
    - Aligning policies and procedures to Gold Fields and industry best practice

Agreement could not be reached with the NUM during the negotiations and a Section 189 notice has
been issued to the union. Agreement was, however, reached with UASA – The Union (“UASA”), whose
members will therefore not be affected by this process. The NUM represents a total of 74% of
employees at South Deep, UASA 13%, while the remaining 13% are unaffiliated. About 330 employees
have accepted the final offer by South Deep and approximately 2,384 underground workers are affected
by the Section 189 notice.

The consultation process with the NUM and affected unaffiliated employees will run for a prescribed
period of 60 days. South Deep is hopeful that it will be able to agree on a way forward that will be in the
best interests of all stakeholders. At the end of the consultation process, the possible outcomes could
include restructuring in line with the new operating model or possible dismissals for operational
requirements.

South Deep is an important and strategic growth asset for Gold Fields and the South African gold mining
industry, with reserves to run beyond 2070. Gold Fields is committed to a process that ensures that
South Deep is managed optimally and adheres to the principles of good governance and sound labour
practice to create best-in-class operating conditions.


Sponsor:
J.P. Morgan Equities Limited

Date: 02/08/2012 07:40:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story