presentation to parliament click to edit master subtitle...

Click to edit Master subtitle style16 November 2011

Presentation to Parliament

Peter Turner, Executive Vice-President

Gold Fields South Africa Region

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Forward Looking Statement

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.

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 environmental regulations; and new legislation

affecting mining and mineral rights; changes in exchange rates; currency devaluations; inflation and other macro-economic factors,

industrial action, temporary stoppages of mines for safety and unplanned maintenance reasons; and the impact of the AIDS crisis in South Africa. These forward looking statements speak only as of the date of this document.

The company 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.

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Click to edit Master subtitle styleGroup Overview




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Gold Fields at a Glance

MALIYanfolila

GHANATarkwaDamang

SOUTH AFRICAKDCSouth DeepBeatrix

PERUCerro CoronaChucapaca

_____________________________________________________________1.Attributable gold equivalent Mineral Resources and Reserves as at 31 December 2010. The attributable reserves and resources reflect the additional 18.9% economic interest

acquired in the Ghana operations and the 17.8% economic interest acquired in the Peru operation. 2.Attributable gold equivalent production for the twelve month period to June 2011

South America West Africa South Africa Australasia Total

Resources1 8moz 16moz 169moz 10moz 230mozReserves1 5moz 10moz 60moz 4moz 80moz Production2 403koz 864koz 1.8moz 640koz 3.7mozNumber of mines 1 2 3 2 8

Offices Australia: Perth | Canada: Vancouver | Chile: Santiago | China: Beijing | Peru: Lima | South Africa: Johannesburg | USA: Denver

AUSTRALASIAAgnewSt Ives

FINLANDArctic Platinum Project

MinesExploration Projects: GFI 100% | CIR Option | JV GFI Operated (Position of mines are indicative only)

PHILIPPINESFar South East

KyrgyzstanTalas







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South Africa Region Overview

South Africa remains the bedrock of the global Gold Fields Group, with a primary JSE listing and secondary listings on the NYSE and others

Three multi-shaft operations: KDC (Kloof-Driefontein Complex), Beatrix and South Deep

Underground mining to depths of 3,600m below surface

48,545 permanent employees (93% HDSA)

All New Order Mining Rights secured

Economic value-add: GFIMSA’s R17 billion in revenue during C2010 was redistributed as follows:

R10 billion in procurement and contract payments

R6.3 billion in salaries

R300 million in socio-economic development spending

R400 million in taxes and royalties

Cape Town

Durban

Bloemfontein

JohannesburgSouth Deep

KDC

Pretoria

Beatrix

Mineral Reserves & Resources131 Dec 2010 (Moz)

1. Attributable gold equivalent Reserves and Resources as at 31 December 2010







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Gold Fields’ investment in South Deep

South Deep was purchased by Gold Fields in 2006 from JCI/Placer Dome and Western Areas for R22 billion

R9 billion investment by Gold Fields in the development of South Deep between 2007 –2015

Around 6,000 permanent and temporary jobs

Massive underground ore-body with a Reserve base of 34 million ounces and a Resource base of 81 million ounces of gold

As opposed to our legacy mines, South Deep is a mechanised mine

Already producing around 250,000 oz a year

Build-up to 750,000 oz

Life of Mine of 53 years

“Last man standing in South Africa’s gold mining industry”

Click to edit Master subtitle styleGFI Mining South Africa (Pty) Ltd (GFIMSA) Mining Charter Performanceas at 31 December 2010

Element Measure Overall Performance

Reporting Charter performance annual report

Ownership Economic Participation Shareholder Rights

Housing and Living Conditions

Occupancy rate reduction and provision of family accommodation

Procurement & Enterprise Development

HDSA spend on capital goods, services and consumables

Employment Equity Diversification of the workplace

Human Resource Development HRD expenditure as a percentage of payroll

Mine Community Development

Implementation of community development projects

Sustainable Development and Growth

Environmental management, health and safety and utilisation of SA research facilities

Beneficiation Local value addition beyond the baseline –Measure only effective from 2012

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75% - 100%Excellent Performance

50% - 75%Marginal to Acceptable

25%-50%Non-compliance

0% - 25% Gross non-compliance

Not yet applicable

Mining Charter Performance

99


Element Measure 2010 Charter Target

GFIMSAPerformance

Reporting Mining Charter report submission

Annual submission Submitted

Ownership

Meaningful Economic Participation 15% Met

Full Shareholder Rights 15% Met

Housing and Living Conditions

% of Employees in Single Rooms Baseline (21%) Met

Hostel upgrades/Family units Baseline (58%) Met






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GFIMSA Performance

HR Development HRD expenditure as % of payroll 3% 4%

Mine Community Development

Implement approved

Community Projects

Implementation of projects

Not met;New projects

implemented –subject to approval

Sustainable Development and Growth

Implement EMPs As per submitted EMP plan

Revised EMPs submitted for

approval

Action Plan on H&S - % of safety reps trained/workforce

2% 4%

% of Samples @ SA facilities Baseline (80%) Met

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GFIMSA Performance

Procurement and Enterprise Development

Capital Goods 5% 39%

Services 30% 39%

Consumables 10% 44%

Employment Equity

Top Management 20% 33%

Senior Management 20% 31%

Middle Management 30% 46%

Junior Management 40% 49%

Core Skills 15% 59%

Leadership – Gold Fields Ltd

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Board of Directors Gold Fields Ltd – Reflects our SA and global spreadNick Holland (52)Chief ExecutiveBComm, BAcc, Witwatersrand; CA(SA)

Paul Schmidt (43)Chief Financial Officer BComm, Witwatersrand; Bcompt (Hons), Unisa; CA(SA)

Cheryl Carolus (52)Independent DirectorBA Law, Bachelor of Education, University of the Western Cape

Kofi Ansah (66)Independent DirectorBSc (Mech Eng) UST Ghana; MSc (Metallurgy)Georgia Institute of Technology, USA

Roberto Dañino (60)Independent DirectorMaster of Law (Harvard Law School) Pontificia Universidad Católica del Perú

Dr Mamphela A Ramphele (63)ChairMBCHB, University of Natal; PhD in Social Anthropology, UNISA; Diploma in Tropical Health and Hygiene; Diploma Public Health, WITS

Alan Hill (67)Independent DirectorBSc (Hons), MPhil (Rock Mechanics), Leeds University, UK

Rick Menell 55)Independent DirectorBA (Hons), MA (Nat Sc, Geology) Trinity, Cambridge, UK; MSc. (Min Expl & Mangmt) Stanford, Cal, USA

Matthews Moloko (46)Independent DirectorBSc Honours (Mathematics); Post Graduate Certificate in Education, Univ. of Leicester; Advanced Management Programme, The Wharton School – Univ. of Pennsylvania

David Murray (66)Independent DirectorBA Hons Econ; MBA, University of Cape Town

Don Ncube (63)Independent DirectorBA Econ, Fort Hare; Post Grad Dip. Labour Relations, Strathclyde, Scotland; Grad MSc Manpower Studies, Manchester; Dipl Fin Management

Gayle Wilson (66)Independent DirectorBCom, BCompt (Hons); CA(SA)

Rupert Pennant-Rea (63)Independent DirectorBA, Trinity College Dublin; MA, University of Manchester

Delfin Lapus Lazaro(65)S Metallurgical Engineering at the University of Philippines

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EnablingGrowth Delivery

Stuart AllanVice President & Head of South

Deep Projects & Capital

Johan BritzHead of Office

Strategy Management

Reg NaidooHead of Finance

Phillip JacobsHead of

Sustainable Development

Paddy GovenderHead of Commercial

Services

Ben HaumannVice President &

Head of Operations Beatrix

Morapedi Mutloane

Head of Human Resources

Koos BarnardSenior Vice

President & Head of Operations KDC

David TaunyaneHead of Processing

Ken MatthysenVice President & Head of Operations South Deep

Nick HollandChairman GFIMSA

Peter TurnerExecutive Vice-PresidentHead of SA Operations

Leadership - GFI Mining SA (GFIMSA)






Mining Charter - Ownership

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All our SA mines have been issued their New Order Mining Rights

Demonstrable value creation and no risk to BEE participants

BEE ownership:

Mvelaphanda Resources acquired 15% in GFIMSA in 200415% BEE ownership requirement achieved within 5 years of Mining Charter coming into effect Deal was fully funded up-front and vestedNet value created circa R4 billion

In December 2010 three additional empowerment transactions were completed

Employee Share Option Plan (ESOP) – 10% of GFIMSA (HDSA)Broad-based BEE transaction for 10% of South Deep and 1% of GFIMSA. Held by South Deep Education Trust; South Deep Community Trust; BEE business and community leadersVoting rights established and economic value vested from Day 1; no funding was required from the beneficiaries; up-front cash provided; immediate dividend payments made and guaranteed annually thereafter; Beneficiaries cannot be diluted and no further cash contribution required







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Mining Charter – BEE Ownership OrganogramZungezileInvestmen

tHoldings

Winter Robin

Investments

Gregorian

Trading66

Rich Cove

Investment

Turncard

Trading118

Salmon Rock

InvestmentsSouth Deep Education

Trust

Invictus

South Deep JV

GFIMSA

MvelaphandaResources

90%

5.5%15%

Thusano Share Trust

(ESOP)

9%1%South Deep Community

Trust

10%

0.5%

TrustsBEE consortiumGold Fields subsidiaries

Direct Shareholding

BEE ownership

Criteria for inclusion in Invictus:Only HDSABroad-basedNot only GautengPreviously not beneficiaries of BEE deals

Representatives from the following group:YouthsWomenVeteransHDSA Emerging Business People and Potential future leadersCommunities







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Mining Charter - HousingHousing and Hostel Programme

R788 million housing and hostel upgrade programme in progress (2006 – 2014) (See next slide)

Family Housing Units

957 units planned by 2012. More than 560 units have been completed by end-2010 (see photo) (See next slide)

Company-owned housing units leased to Category 3-8 employees at a nominal rental with a view to selling it to them (See family unit slides)

Hostel Conversions

96% complete

Current resident ratio is 1.6 per room from 8 pre-2006. Moving towards 1 person per room by 2014 (See hostel conversion slide)

Residents have access to wellness and sport facilities New housing developments have

facilities for families and children

Upgraded hostel room can sleep 1 or 2 persons







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Family units in hostel environment replaced with new housing unit building programme –deemed to be more conducive to nurturing family values

Housing: Family units and Hostel conversion

Period TotalOriginal Hostel

Rooms Family Units

Social Labour Plan Commitment 4490 3536 954

Actual at 31 December 2010 3661 3099 562Percentage completed 82% 88% 59%

Actual at 30 September 2011 4047 3385 662Percentage completed 90% 96% 69%

Forecast at 31 December 2011 4375 3713 662Percentage completed 97% 105% 69%Forecast at 31 December 2012 5121 4164 957Percentage completed 114% 118% 100%Forecast at 31 December 2013 5618 4661 957Percentage completed 125% 132% 100%Forecast at 31 December 2014 5679 4722 957Percentage completed 126% 134% 100%

Total Investment in today’s money R 788m R 587m R 201m







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Housing and Living Conditions: Privacy and Dignity12 847 private bedrooms by 2014 with a room density slightly greater than 1

PeriodAverage

Room Density Total number of bedrooms

Number of upgraded bedrooms

Number of rooms not yet upgraded

28 February 2008 6.5

31 December 2010 1.8 10 701 9 078 1 623

30 September 2011 1.6 11 015 9 678 1 337

31 December 2011 1.5 11 630 10 621 1 009

31 December 2012 1.3 12 245 11 687 558

31 December 2013 1.2 12 786 12 725 61

31 December 2014 1 12 847 12 847

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Housing: Family Units

A Family Unit is actually a house of 49 m², with a carport, BIC’s, kitchen cupboards and a stove

Family Units are located in existing villages close to social infrastructure

The employee pays a nominal rental of R10 a month and is given free electricity and water that are capped on a monthly basis

Some of these Family Units will go on sale in the near future

Houses in East Village, KDC Mine

Elias Gumede receives keys to his home in Thembelihle Park, East Village from CEO Nick Holland







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1. Open to all employees who are South African citizens

2. Houses of 49 m² to be built by Gold Fields (the Developer) in proclaimed townships close to the Mines

3. 1000 houses to be built over a 5 year period from 2012 onwards.

4. Should the demand exceed 1000, Gold Fields will seek partners to assist with meeting such demand

5. Banks will provide the finance at a low interest rate at below Prime plus 3

6. Gold Fields will also provide an interest free loan so as to keep the monthly repayments as low as possible

7. Gold Fields will buy back the property within the first 5 years if the Homeowner decides to sell 2

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Housing: Home Ownership Scheme

A typical floor plan of a 49 m²house







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Procurement

During C2010 we spent R2.6 billion (41% of our total SA procurement) with BEE suppliers

In C2010 we trained almost 300 unemployed community members in basic skills (artisans) to encourage SMME development

Of our supplier base of 2,200 companies, 674 (31%) are HDSA

Planning to increase number of HDSA suppliers through various initiatives such as mentorship programmes and SMME incubators

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Mining Charter – Procurement & Enterprise Development







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Enterprise Development

Some of our largest Enterprise Development projects in our host communities and labour sending areas include:

Living Gold rose farm: 230 to 470 jobs

KDC Alien Vegetation project: 45 jobs

About 2,150 crop and 3,200 livestock farmers trained

About 6,000 secondary jobs through crop farming

Futyana Bakery: 22 jobs

Eden Village sewing project: 22 jobs

Stitchwise Paragon: 22 jobs to physically disabled and 20 able-bodied people 2

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Mining Charter – Procurement & Enterprise Development







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Employment Equity

We are on track to achieve transformation and employment equity targets

This will be achieved through:

External recruitment in cases where we don’t have internal candidates

Leadership Development Programme through which we identify high-profile individuals at all levels of the Group

70% of our graduate and bursar intake are HDSA students

Strengthening of our talent retention strategy, including mentorship programmes

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Mining Charter - Employment Equity







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Mining Charter - Employment Equity

0

10

20

30

40

50

60

70

Percen

tage

compliance

GFL Mining Charter Performance for 2010

Mining Charter Target

GFL Perfomance






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Mining Charter – Human Resource Development

Gold Fields Academy

The Academy manages our internal training programme with a budget of R275 million/yearThe Academy funded over 600 mining and engineering learnerships last yearThe Academy offered 13,150 staff and 3,100 community members ABET opportunities to date

Portable Skills

All employees requesting Voluntary Separation Packages must attend a portable skills course of their choice at the company’s expense. This training is also available, part-time, for other employeesAll employees completing the course will receive a R5,000 training allowance and leave with a handy man tool box, so they can immediately start working in the trade completedDuring the training they are trained on “starting up your own business” skillsShould shaft closures or rationalisation become unavoidable we will offer re-training at our portable skills centres to those employees potentially affectedOver the past five years the following number of employees and learners received portable skills training:

Employees – 3,750 learners; Community learners – 1,095 learnersTotal – 4845 learners






Schools

Built three new schools (Reseamohetse, Glenharvie, Letsatsing) in near-mine communities (about 3,740 pupils)

Upgrading and equipping schools and assisting the Dept of Education in managing primary and secondary schools in the communities adjacent to our mines (about 3,260 schools)

Spending on school initiatives totalled R44 million over the past three years.

Universities

We gave a combined R30 million, three-year sponsorship to Wits University’s and the University of Johannesburg’s Mining Schools and provided additional support for the University of Pretoria

In 2011 we have almost 90 graduates in training and have issued almost 100 bursaries at universities and Future Education and Training Colleges 2

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Mining Charter – HRD & Education

Reseamohetse Public School in Theunissen near our Beatrix mine in the Free State






“Education is Empowerment”

South Deep Education Trust

The South Deep Education Trust – formed as part of Gold Fields’ BEE transaction last year –has in the past six months awarded over R6 million in funding and grants to a range of educational initiatives, including Archbishop Desmond Tutu’s Lapdesk project.

The Trust is entitled to substantial cashflows from South Deep over the life of the mine to continue promoting educational upliftment programmes

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Mining Charter – HRD & Education

Archbishop Desmond Tutu, patron of the Lapdesk project, and Gold Fields CEO Nick Holland







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Commitments in support of job creation:

Bursaries, Learnerships and Training

Increase bursary awards for engineering students by 20% for 2012

Expand experiential internship opportunities for MQA/DMR sponsored engineering graduates. An additional 45 Section 18.2 engineering learners will be taken on next year in partnership with the Dept of Labour and MQA

Facilitate vacation work opportunities for 250 engineering students per annum, 50% of which are non-Gold Fields bursars

Establish partnerships with FET Colleges to prioritise technical qualifications for employees

Continue to contribute to the Mining Education and Training Fund (METF – a fund that sponsors university mining schools) and considering increasing the annual levy by up to 50%

Consideration is being given to a once-off contribution to a National Youth Development Fund 2

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Commitments – Jobs, HRD &Training






Additional Commitments – Jobs, HRD &Training

2929

o Gold Fields Group HRD Spending (Rm)

12 months to June 2009

18 months to Dec 2010



R274m R378m R275m R565m

Number of Graduates/Diplomats in training

C2009 C2010 C2011 C2012

61 74 83 91

Number of GFL Bursars (HDSA)

C2009 C2010 C2011 C2012

104 (74) 121 (90) 98 (88) 118 (106)







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1,000 new jobs over the next 3 years

Gold Fields development and R9-billion investment at the South Deep mine should lead to about a 1,000 new jobs by 2015

Declining gold industry makes further job creation at SA legacy operations (KDC and Beatrix) unlikely.

Should shaft closures and rationalisation become unavoidable we will offer re-training at our portable skills centres to those potentially affected

Job growth as a result of current mining operations will be in the areas of enterprise development, local economic development and secondary industries relating to mine procurement

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Commitments – Jobs, HRD &Training







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Mining Charter – Mine Community Development

Closure

MWPSLP

EMP

Vision, Values, Strategy and Closure Philosophy

Self-sustaining post mining economy

Transforming through linking

our Charter, SLP, LED and

Enterprise Development

and job creation

Strategic advantage –Water and

Land availability

Focus on:1. Compliance2. Enterprise Development3. Job creation – youth4. Rehabilitation towards closure 5. New sustainable economy –

post closure







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Communities and Socio-economic Development Programmes

R86 million to be spent in C2011 on socio-economic development programmesFocus of our R86 million spend programme is on:

Community Health Programmes (Health Care Centres)Education (Schooling infrastructure and support programmes)Agriculture (Animal husbandry and training hubs)

Key requirement: Projects should be sustainable and independent of the mine Created about 5715 community job opportunities (See enterprise development section)

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Benjamin Masebe -Alien Vegetation SMME member







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Communities and Socio-economic Development Programmes

The South Deep Community Trust is entitled to substantial cash-flows from South Deep over the life of the mine to promote community upliftment programmesR18 million spent in Labour Sending Areas (Eastern Cape, KwaZulu Natal, Limpopo and other SADC countries)More than 5 000 trained in livestock and crop farming (See enterprise development section)Joint venture between Gold Fields, AngloGold Ashanti and Letsema Circle to deliver more effective farming, medical and public sector support in the Eastern Cape. Initial R6 million commitment for researchFocus on collaboration for increased impact through our rural development programmes

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Vuyisile Ndabeni (left) and a customer at his nursery in Lusikisiki







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Employee Health & Wellness

We encourage a healthy life-style of all our employees through our holistic programme called “24 hours in the live of a Gold Fields employee” – sport, nutrition, housing, safe production and health & wellness

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Mining Charter – SD and Growth







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Employee Health & Wellness

Gold Fields runs an extensive system of clinics and hospitals (St Helena, Leslie Williams) for its employees and the surrounding communities

All our employees are entitled to free HIV/Aids and TB medication and a large portion of our infected workforce is making use of it. In C2010 almost 3,000 employees received the voluntary Highly Active Anti-Retroviral Treatment (HAART) – about half of those believed to be infected

In C2010 we spent R56 million on HAART and R29 million on TB treatment

Safety is our Number 1 Value and our Safety philosophy is “If we cannot mine safely, we will not mine” GFIMSA continues to strive

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Environment

Our membership of the ICMM, UN Global Compact and the World Gold Council requires leadership in Responsible Gold, Sustainable Development and Best Environmental practice

All our mines are ISO14001 certified, fully compliant with the Cyanide Code

Closure Plans are in place and are reviewed annually to ensure appropriateness and alignment with key role players e.g. Local Municipalities

Concurrent rehabilitation being linked to LED, Procurement and Enterprise Development

Rehabilitation Trust Funds are fully funded with cash and insurance guarantees

Biodiversity has become a integral consideration in our Closure Plans and will focus on Community benefit in the medium to 3

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Environment

A Carbon Management Strategy has been implemented and mitigation measures initiated, led by the Beatrix Methane Project. Other carbon projects investigated

Waste Management incorporated into the Carbon Management focus

Proactive water management to avoid long term AMD is being driven through the Liquid Gold project that will result ina sustainable water treatment solution going forward.

Awards

Gold Fields was joint first in the 2010 Carbon Disclosure Project (CDP) for JSE-listed companies.

Gold Fields recognised by UK’s Environmental Investment Organisation as the top Brics 300 company in terms of CO2-emission disclosure

Reporting Awards:

Joint 1st in E&Y Excellence in Corporate Reporting 37







Vision and Values

Vision To be the global leader in sustainable gold mining

Values

Safety If we cannot mine safely, we will not mine

ResponsibilityWe act responsibly and care for the environment, each other, and all of our stakeholders - our employees, our communities and our shareholders

Honesty We act with fairness, integrity, honesty and transparency

Respect We treat each other with trust, respect and dignity

Innovation We encourage innovation and entrepreneurship

Delivery We do what we say we will do

GOAL Five million quality gold ounces in production or development by 2015

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